Factors Influencing the Adoption of Cloud Computing by Small and Medium Enterprises (SMEs) in Developing Economies

The key motivation of this paper is to assess the factors which influence small and medium enterprises (SMEs) in a developing economy to adopt cloud computing. Recently, service providers offering a wide range of cloud-based ICT solutions to businesses have emerged into prominence. However, the acceptance and interest in these services amongst SMEs are slow and discouraging. As such, there is the urgent need to identify the enabling and constraining forces and other key influential factors necessitating this problem. The study highlights cost reduction on IT infrastructure and maintenance, improved communication, scalability and business continuity as the main drivers of cloud adoption, whereas lack of knowledge, poor internet connectivity, security of cloud services, lack of trust and interoperability with existing systems were identified as barriers to adoption. Top management support, trialability, competence of cloud vendors, resistance to new technology, compatibility and existence of IT infrastructure are realized as key factors influencing cloud computing adoption. These findings will go a long way in helping service providers and technology policymakers to develop solutions and strategies that specifically meet the needs of SMEs and other clients in order to encourage and speed up the rate of adoption.