This paper analyzes the use of cloud computing (cloud) by small service business (SSB) firms in the Greater Toronto Area (GTA) of Canada and its impact on their competitiveness. There is research that suggests that small and medium sized enterprises (SMEs) lack technical and management capabilities in relation to information and communications technology (ICT) that impede strategic impacts from their use. However, new forms of ICT such as cloud may offer opportunities for SSBs to overcome some capability limitations traditionally associated with the use of ICT. There is a dearth of studies on the use of cloud in SMEs. It is, therefore, hoped that this Canadian focused investigation will contribute to our understanding of how cloud is being used by SSBs and if such usage has resulted in any competitive advantage. Results show that GTA-based SSBs define cloud variously as email, Apple iCloud, storage, sharing of files with multiple computers, online hard drive and office applications. Almost all respondents indicated that some form of cloud is used by their business and that this use results in competitive advantages. SSBs who have high levels of alignment of their IT and business strategies also show high alignment of cloud and business strategies.