Cloud Computing Adoption in Small and Medium Enterprises

Abstract

Cloud computing has become a key technology that enables Small and Medium Enterprises (SMEs) to improve operational efficiency, reduce infrastructure costs, enhance business agility, and support digital transformation. By providing on-demand access to computing resources, storage, software, and networking services, cloud computing allows SMEs to adopt advanced technologies without significant capital investment. Despite its benefits, cloud adoption is influenced by several technological, organizational, environmental, financial, and security-related factors. Challenges such as data privacy, cybersecurity risks, regulatory compliance, vendor lock-in, and limited technical expertise often affect adoption decisions. This study examines the critical factors influencing cloud computing adoption using a framework based on technological, organizational, and environmental dimensions. It also considers major cloud deployment models and service models, including IaaS, PaaS, and SaaS. The findings indicate that cloud computing improves scalability, resource utilization, collaboration, business continuity, and decision-making while reducing operational and maintenance costs. However, successful implementation requires effective security measures, employee training, organizational readiness, and reliable cloud service providers. The study provides valuable insights for researchers, policymakers, technology vendors, and business managers to support effective cloud adoption and enhance the digital competitiveness and sustainable growth of SMEs.