Purpose This study aims to find out the current state of cloud-based library services in selected academic and special libraries of Bangladesh. The study also explored some pertinent problems faced by librarians in implementing this new technology in library services and activities. Design/methodology/approach The study used a mixed-method approach with a range of exploratory research questions. Purposive sampling technique was used to select the libraries. A set of structured questionnaires was designed to address the objectives of the study. For in-depth analysis, short interviews with the library professionals were also conducted. Findings Only four libraries made use of cloud computing services, and they maintained a partial cloud environment. Most responding librarians treated cloud computing as a dynamically scalable infrastructure for applications, data and file storage with charges imposed. Most of the respondents (90%) preferred cloud computing for “Software-as-a-Service”. Due to the high subscription rate (70%), unreliable online payment system (60%) and trading system (60%), librarians treated cloud computing as a burden in providing library services and activities. Respondent librarians were also interviewed for exploring their views on cloud computing in library services. For adopting cloud computing in library services of Bangladesh, “sufficient financial allocation” and “organizations’ positive decision over cloud computing” were mentioned as challenging tasks by the respondents. Finally, the study suggested some solutions to the problem and proposed a model for a cloud-based library system that can be replicated in libraries and information centres of other developing countries too. Originality/value This paper encapsulates the overall scenario of cloud-based library activities and services in Bangladesh. Based on the available secondary sources, no empirical study on librarians’ perceptions of cloud computing in library services of Bangladesh has been carried out before this study. Thus, this is perhaps the first attempt to quantitatively measure cloud-based services in Bangladeshi libraries.