Cloud computing gives small businesses the ability to migrate data, documents and applications to an outsourced data center, making these essential business components accessible around the world on virtually any device.

However, many startup decision-makers may be hesitant to make the move to the cloud because of security concerns, according to a SmallBizTechnology report.

Hybrid clouds, which are a combination of publicly outsourced and internally hosted environments, can provide a safety blanket for startups that are nervous about the hosted services, the news source said. By using hybrid models, decision-makers can host sensitive data and files on a personal data center, which is managed by internal IT staff and outsource less confidential records to outside data centers to help reduce maintenance and staffing costs.

In some cases, such as fax, a cloud fax service enables a business to get rid of its fax machine, further reducing the cost of business by eliminating the need for a dedicated phone line, paper and toner.

By using eFax, for example, small businesses can fax from any computer or mobile device with web access (including smartphones and Apple's iPad), enabling employees to access, manipulate and send documents online without the need for a fax machine.

Other cloud-based communications, like VoIP and virtual phone systems, can also help small companies save money. By utilizing these cloud services, startups can leverage enterprise-class technologies, giving them a competitive advantage over rival firms, according to TMCnet.