Cloud computing : SME company point of view

Abstract

Cloud computing is a modern concept which helps to optimize the IT performance of SMEs sector without huge cost of infrastructure. It is an on-demand computing service which provides pay-per-use possibility to SMEs. This research study is explaining various advantages of cloud computing, which motivate SMEs to adopt these services. SMEs do not have a large amount of financial and human resources, so they are not able to implement and upgrade advanced technologies to increase their business performance. The main purpose of this research study is to explain how SMEs can benefit from using cloud computing for their businesses and to make suggestions about potential disadvantages. A detailed literature review is gathered to discuss basic concepts of cloud computing and its implementation in SMEs. Furthermore, advantages of cloud computing are also discussed in connection with existing theory. A qualitative approach is selected to direct this study by focusing on interpretivism research philosophy. A convenient sampling method is used to choose six SMEs operating in Oulu and other cities in order to gather data. An unstructured questionnaire is used to conduct interviews from IT personnel working in these SMEs. Findings of the research study suggest that the most important factors which lead SMEs towards adoption of cloud computing include cost effectiveness, flexibility and scalability in resource utilization, lower technology risk, data security and effective IT support. Some other factors related to service providers have also been identified in this study; for instance, trust in service providers is considered an important factor while making decisions about cloud adoption. Trial-ability of cloud services makes it more convenient for SMEs to implement the best suitable services as per their business environment.