How to Set Up Cloudways for an Agency: Complete Guide

Cloudways is one of the best hosting platforms for agencies — if you configure it correctly. Most people set up one server, install WordPress, and stop there. The configuration that actually makes Cloudways work for an agency involves settings most users never find.

Here's the complete setup guide.

Step 1: Choose Your Cloud Provider and Server Size

When you create a server, Cloudways asks which cloud provider to use. This choice matters more than most guides acknowledge:

For most agencies: DigitalOcean 2GB is the right starting point. The $14/mo plan gives you enough headroom for 3–5 small WordPress sites and delivers the 387ms average TTFB we measured in benchmarks.

Server sizing rule: 2GB RAM for 1–5 sites, 4GB for 5–15 sites, 8GB for 15+ sites or any site with WooCommerce and > 1k daily visitors.

Step 2: Create the Server and First Application

After server creation (~5 minutes), create your first application:

1. Servers → [your server] → Applications → Add Application
2. Select: WordPress (not WordPress + WooCommerce unless needed — the WooCommerce install includes extra plugins)
3. Application name: use the client name or domain
4. PHP version: 8.3 (unless a plugin requires older PHP — check before assuming)

What Cloudways creates:

• WordPress install at a temporary .cloudwayseapps.com domain
• MySQL database
• Application user with SFTP credentials

Step 3: Configure Caching (Critical Step Most Skip)

After installation, caching is not enabled by default. This is the most common Cloudways mistake.

Go to: Application → Application Management → Varnish

Enable Varnish (full-page cache). For WooCommerce applications:

• Enable Varnish
• Add cache exclusions:

/cart
/checkout
/my-account
/?add-to-cart=
/?wc-ajax=

These exclusions prevent Varnish from caching dynamic WooCommerce pages — a critical setting that causes real bugs if missed (users see each other's cart contents without it).

Also enable: Application → Application Management → Redis. Redis object cache handles WordPress's database query caching. On applications without Redis, logged-in users (WooCommerce customers) generate significantly more database load.

Install Redis Object Cache plugin: Go to WordPress admin → Plugins → Add New → search "Redis Object Cache" → Install → Activate → Settings → Enable Object Cache.

Step 4: Set Up Staging Environment

Every client site should have a staging environment. Cloudways makes this one click:

Application → Staging Management → Create Staging

This clones your application (files + database) to a staging URL. Changes you make in staging don't affect production.

Before any plugin update or theme change:

1. Push production to staging: Sync to Staging
2. Make changes in staging
3. Test thoroughly
4. Push to Live when verified

The common mistake: making changes directly in production because "it's a small change." Small changes break production too.

Step 5: Configure Automated Backups

By default, Cloudways backups run every 24 hours. For client sites:

Application → Backups → Settings:

• Frequency: every 12 hours (daily is acceptable for low-change sites)
• Retention: 14 days (7 days minimum)

Local backups: Cloudways backups are stored on the same server infrastructure. For important client sites, also configure an off-server backup using the Cloudways Add-Ons → Remote Backup feature (sends backups to S3 or DigitalOcean Spaces).

Remote backup cost: S3 storage is ~$0.023/GB/month. A 5GB site backup = $0.12/month. Worth it.

Step 6: Team Access Configuration

This is the agency-critical configuration most guides skip entirely.

Cloudways team members can be assigned per-application:

1. Account level: Go to Account → Add Team Member
2. Assign permissions: Choose "Project Manager" (full application access) or "Developer" (no billing/account settings)
3. Share with client: Add client as a team member with limited access to only their application

This lets you:

• Give developers access to specific applications without exposing other clients' sites
• Give clients access to their own site's dashboard (for them to view metrics, not modify server settings)
• Remove access when an engagement ends

Do not share your main login credentials with developers. Use team access so you can revoke permissions cleanly.

Step 7: Connect Custom Domain and SSL

1. Application → Domain Management → Add Domain → enter the client's real domain
2. Application → SSL Certificate → Let's Encrypt → Add domain → Issue certificate
3. Redirect HTTP to HTTPS: Application → Domain Management → Force HTTPS

Wait 2–5 minutes for SSL provisioning before testing. If SSL fails, ensure the domain's DNS is pointing to your Cloudways server IP (get it from: Server → Master Credentials → IP Address).

Step 8: Configure PHP Settings for Performance

Default PHP settings are conservative. For WordPress production sites:

Application → Application Settings → PHP Settings:

memory_limit = 256M
max_execution_time = 300
upload_max_filesize = 64M
post_max_size = 64M

For WooCommerce or media-heavy sites:

memory_limit = 512M
upload_max_filesize = 128M

Step 9: Security Settings

Application → Application Settings → Security:

• Enable "Block XMLRPC" (reduces brute force attempts; only disable if a plugin requires XMLRPC)
• Enable "Block Direct PHP Execution" in uploads folder
• Enable bot protection if available on your plan

Fail2Ban: Cloudways has server-level brute force protection, but for high-value sites, also install the Wordfence plugin with rate limiting.

Managing Multiple Client Sites: The Agency Workflow

Monthly maintenance tasks:

1. Check Cloudways monitoring dashboard for any resource alerts
2. Run backup verification (restore test from backup monthly)
3. Check for WordPress core + plugin updates in staging
4. Review disk usage — WooCommerce accumulates log files and order exports

When a client grows past 1 server: You can add multiple applications to one server (cost-efficient) or move a growing application to its own dedicated server (performance-efficient). Cloudways application cloning makes this straightforward.

Billing: Cloudways bills hourly and invoices monthly. If a client leaves, delete their application and server — billing stops within hours. No monthly minimums.

The Settings That Make the Biggest Difference

In order of performance impact:

1. Enable Varnish (page cache) — reduces TTFB from 387ms to ~150ms for cached pages
2. Enable Redis + install Redis Object Cache plugin — reduces database load 40–60%
3. PHP 8.3 — significantly faster than PHP 7.x; verify plugin compatibility first
4. Add WooCommerce cache exclusions — prevents cache-related bugs in stores
5. Set up staging — prevents the "client site broke after update" emergency at 2am