Cloud Computing is a new resource platform that offers abundant amount of services for organizations to meet furthermore satisfies the needs without huge and prior investment. When it comes to the development of a cloud, architecture plays a critical role. Architectural design is the primary step to meet the client demands. The purpose of this paper is to design a feasible and low-cost architecture that can be adapted for small-scale academic organizations. However, the architecture is expected to provide reliable and qualitative services such as SaaS, PaaS considering risk analysis into account. During the process, customization is carried out at possible stages of cloud development, such that the chances of generating a low-cost architecture maximizes. Proposed architecture considers limitations on hardware, middle ware, open source platforms, additional modules and client requirements during the development process. Novelty in proposed architecture lies in addition of group handler layer to increase service efficiency. Finally the architecture proposed through this paper is able to justify a stable and feasible platform for motivating universities to bridge the gap between student, staff and academia with cloud technology.