If by the repeated use of the word "cloud" you mean a virtualized environment, sure. It won't be fast. You may overextend your resources. Or it might run decently enough for what you're doing. It entirely depends on WHAT you're doing. My MacBook Pro is pretty good with web surfing and word processing and email...I don't think I should use it for weather forecasting, though.
And really, why even ask this? You can invest a day in just TRYING to do it. Download ESXi (for your platform...are you sure your processor is only 32 bit?) and/or Hyper-V. Or Xen. Whatever you're most comfortable in trying out. And TRY IT OUT. All of these are free. Not many nodes for what you're doing? Virtualbox should work too. Not as resource efficient as setting up a bare metal hypervisor, though.
All free. All available online. Download. Install. See if it works for your purposes. They'll all teach you a bit more about the platforms. And if you try multiple platforms, you'll learn why sysadmins hate hearing the generic "cloud" term for virtualization. Turning something into a buzzword doesn't make it magically simple.