Managed Nextcloud

Yes, Nextcloud is open-source software and can be self-hosted on your own hardware or a virtual private server (VPS). However, self-hosting requires you to manage the Linux operating system, web server, database, SSL certificates, security updates, and regular backups yourself.

For most small and medium businesses, the operational overhead of self-hosting is not worth the cost savings compared to a managed Nextcloud hosting service like Velocity Host, where all of that is handled for you from day one.

Yes - Nextcloud is server-side software that needs to run on a web server with PHP and a database (typically MySQL or PostgreSQL).

You have three practical options:

1: Install it on hardware you own.

2: Rent a VPS and set it up yourself, or

3: Velocity Host is the third option — we provide and manage the server environment for you, so you only need a browser or the desktop and mobile sync clients to use Nextcloud. There is no server for you to configure or maintain.

For a small team of up to 5 users, Nextcloud runs comfortably on a server with 2GB of RAM, though 4GB is recommended for better performance, particularly if you are running additional apps such as Nextcloud Office or Talk. For larger deployments with more concurrent users, 8GB or more is advisable. When you use Velocity Host’s managed Nextcloud service, server resource allocation is handled by us - you do not need to think about RAM specifications at all.

Nextcloud itself is open-source and free, licensed under the AGPL. You can download and run it at no cost.

However, ‘free software’ does not mean ‘free to operate’ — you still need a server, domain, SSL certificate, and someone to maintain the installation. Nextcloud also offers an Enterprise subscription tier with additional support, compliance features, and SLAs for larger organisations.

Velocity Host’s cheap Nextcloud hosting covers the infrastructure and management layer, not a licence fee for the Nextcloud software itself.

Velocity Host offers managed Nextcloud hosting in Australia starting at $80 per month (excluding GST) for up to 5 users on a dedicated instance.

This includes the managed infrastructure, automated backups, security maintenance, and Australian-based support.

If you also need hosted business email, the Nextcloud plus VelocityMail bundle is available for $95 per month. Businesses with more than 5 users or custom storage requirements can contact us for a tailored quote.

That depends entirely on what you mean by ‘better.’

For businesses that prioritise data sovereignty, privacy, and the ability to run on Australian infrastructure, Nextcloud is genuinely the best-suited option among open-source cloud storage platforms.

Owncloud is a related alternative (Nextcloud was forked from it), but Nextcloud has a larger active developer community and more regular releases.

Seafile is a performant alternative focused primarily on file sync rather than the broader collaboration suite Nextcloud provides.

Google Drive and Microsoft 365 are more feature-complete in some areas but store your data on overseas servers under US jurisdiction, which is a meaningful distinction for many Australian businesses.

For most small businesses in Australia, a fully managed Nextcloud hosting service is the best approach. It eliminates the need for internal Linux expertise, ensures the platform stays updated and secure, and means you have a local support contact if something goes wrong.

Self-hosting on a VPS is viable if you have the technical skills, but it introduces ongoing maintenance obligations that distract from running your business.

Velocity Host’s Nextcloud as a service is specifically designed for Australian SMBs who want the privacy benefits of Nextcloud without the technical complexity of managing it themselves.