Understanding and Supporting Cloud Computing Adoption in IrishSmall and Medium Sized Enterprises (SMEs)

Cloud Computing adoption has experienced a considerable rate of growth since its emergence in 2006. In 2011, it had become the top technology priority for organizations worldwide and according to some leading industry reports the cloud computing market is estimated to reach $241 billion by 2020. Reasons for adoption are multi‐fold, including for example the expected realisation of benefits pertaining to cost reduction, improved scalability, improved resource utilization, worker mobility and collaboration, and business continuity, among others. Research into the cloud computing adoption phenomenon has to date primarily focused on its impact on the larger, multinational enterprises. However, one key area of the market where cloud computing is expected to hold considerable promise is that of the Small and Medium Sized Enterprise (SME). SMEs are recognized as being inherently different from their larger enterprise counterparts, not least from a resource constraint perspective and for this reason, cloud computing is reported to offer significant benefits for SMEs through, for example, facilitating a reduction of the financial burden associated with new technology adoption. This paper reports findings from a recent study of Cloud Computing adoption among Irish SMEs. Despite its suggested importance, this study found that almost half of the respondents had not migrated any services or processes to the cloud environment. Further, with respect to those who had transitioned to the cloud, the data suggests that many of these SMEs did not rigorously assess their readiness for adopting cloud computing technology or did not adopt in‐depth approaches for managing the cloud lifecycle. These findings have important implications for the development/improvement of national strategies or policies to support the successful adoption of Cloud Computing technology among the SME market. This paper puts forward recommendations to support the SME cloud adoption journey.

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