How to Set Up a Virtual Machine in Cloud Computing Step by Step

Let’s start with a quick stat: according to Gartner, over 95% of new digital workloads are expected to be deployed on cloud-native platforms by 2025. And a large chunk of that will run on virtual machines (VMs)—the backbone of scalable, flexible infrastructure in the cloud.

Setting up a virtual machine used to be a task reserved for IT pros buried in wires and hardware. Not anymore. With the rise of cloud computing, spinning up a fully functional VM is now as simple as a few clicks—and you don’t need a data center or rack space to do it.

Whether you’re a developer, a startup founder, or part of an enterprise IT team, knowing how to set up a virtual machine in the cloud is a practical skill. It's useful for testing, hosting, isolating apps, or building secure environments.

In this guide, we’ll walk you through the exact steps to set up a VM in the cloud, covering both the basics and the details you don’t want to miss. We’ll also weave in smart tips and point out how Cyfuture Cloud can make your setup smoother, faster, and easier to manage long-term.

What Is a Virtual Machine in Cloud Computing?

Before we jump into setup mode, it’s worth clarifying what we’re dealing with.

A virtual machine is essentially a software-based emulation of a physical computer. It runs an operating system, apps, and can be used almost exactly like a physical PC or server. The key difference? It exists inside the cloud, not on your desk.

In cloud computing, VMs live in a hosted environment—on servers managed by providers like Cyfuture Cloud—giving you all the performance and control of traditional machines, but with way more flexibility.

You can:

Create and destroy them as needed

Scale resources up or down

Run multiple OS environments side-by-side

Access them remotely from anywhere

Now, let’s walk through how to actually set one up.

Step-by-Step: How to Set Up a Virtual Machine in the Cloud

Step 1: Choose Your Cloud Hosting Provider

The first and most important step is picking a provider. There are big names like AWS, Azure, and Google Cloud—but for more personalized support, cost efficiency, and better regional control, Cyfuture Cloud is a solid option.

Why?

Competitive pricing

High-performance infrastructure

Indian data center 

availability for compliance

24/7 support

Easy-to-use dashboard for managing your cloud hosting resources

Once you’ve chosen your provider and created an account, you’ll get access to a control panel or dashboard to start setting up your VM.

Step 2: Select Your Region

Cloud platforms typically offer multiple regions or data center locations. Picking the right one is critical for performance.

Choose a region close to your users or business operations.

If compliance or data sovereignty matters, ensure the region meets your regulatory requirements (for example, hosting within India for certain industries).

With Cyfuture Cloud, you can pick from multiple Indian and global regions depending on your audience.

Step 3: Choose the Operating System (OS)

Next, you’ll select which OS to run on your VM. Common options include:

Linux distros (Ubuntu, CentOS, Debian)

Windows Server

Think about your application needs:

If you’re hosting a web app or running development tools, Ubuntu or CentOS is lightweight and reliable.

If you’re running Microsoft-based services, go with Windows Server.

Most cloud hosting platforms offer pre-configured images of these operating systems—just pick and deploy.

Step 4: Choose Your VM Size (Resources)

This is where you define how much power your VM will have.

You’ll usually choose from plans that include:

vCPUs (virtual CPUs)

RAM (memory)

Disk storage (HDD/SSD)

Here’s a rough guide:

Small VM (1–2 vCPUs, 1–2GB RAM): Great for testing, light apps

Medium VM (2–4 vCPUs, 4–8GB RAM): Ideal for small production apps

Large VM (8+ vCPUs, 16GB+ RAM): Needed for heavy workloads, databases, or high traffic

Cyfuture Cloud offers scalable virtual machines tailored to different workloads—so you don’t overpay or underpower your setup.

Step 5: Configure Storage Options

Your VM needs a virtual hard drive to store data.

You’ll usually choose:

Boot Disk – where your OS is installed.

Additional Disks – if you need extra storage for files, backups, or databases.

Go with SSD-based storage for speed, especially if your application involves frequent read/write operations.

Cyfuture Cloud lets you add or resize disks later if your needs grow, giving you flexibility.

Step 6: Set Up Networking (IP, Firewall, etc.)

You’ll now set up networking settings:

Assign a public IP address so you can connect remotely.

Configure firewall rules to control access (e.g., allow SSH for Linux or RDP for Windows).

You might also want to open specific ports—like 80 (HTTP) and 443 (HTTPS)—if you're hosting a website.

Cyfuture’s platform allows for easy firewall management, including templates for common scenarios.

Step 7: Launch Your Virtual Machine

Once all configurations are in place:

Click “Create” or “Launch” on your dashboard.

The platform will provision your VM—this can take anywhere from a few seconds to a couple of minutes.

Once it’s ready, you’ll see its IP address and connection info.

Congrats! Your cloud-based virtual machine is now live.

Step 8: Connect to Your VM

To access your virtual machine:

For Linux VMs, use SSH from your terminal or tools like PuTTY (on Windows).

For Windows VMs, use Remote Desktop Connection (RDP) by entering the IP address and credentials.

From here, you can install software, run scripts, host applications—whatever your use case demands.

Step 9: Secure and Maintain

Don't skip this part. Once your VM is running, secure it.

Change default passwords

Install updates and patches regularly

Set up automatic backups

Enable 2FA and monitoring

Cloud providers like Cyfuture Cloud often offer built-in security tools, backup options, and system monitoring to help manage this with less hassle.

Use Cases for Virtual Machines in Cloud Hosting

Now that you know the “how,” here’s the “why” people set up cloud VMs:

Web Hosting – host multiple websites from a single VM

Application Development – test apps in isolated environments

E-learning & Labs – simulate environments for IT training

Legacy App Support – run older systems that require specific OS versions

Disaster Recovery – keep redundant systems ready to spin up in case of failure

The flexibility of cloud VMs makes them one of the most powerful tools in modern IT.

Conclusion

Setting up a virtual machine in cloud computing isn’t just easier than ever—it’s also a smart move for businesses that want flexibility, scalability, and performance without the hardware headaches. From choosing your cloud provider to launching and securing your VM, each step matters. And doing it right ensures your setup runs smoothly and safely from day one.

If you're looking for a cloud provider that combines hosting power with local expertise, Cyfuture Cloud delivers. Their cloud infrastructure is built to handle everything from small dev projects to enterprise-grade applications—without the complexity.

Remember, a virtual machine isn’t just a tool—it’s a launchpad. Use it to build, test, run, and grow your ideas in the cloud, on your terms.