Cloud Services provide time and money saving benefits representing an attractive alternative solution for small to medium (SMB)businesses. As the cloud services become increasing more reliable cost effective, significantly more SMB will migrate to the cloud for core services and support. This research evaluates different types and models of cloud services for SMB including benefits and challenges. The report presents case studies for each model of cloud services with real-world products. The report also analyzes advantages and disadvantages of cloud services and how can this affect small business operations.