Investigating Factors Affecting Cloud Computing Adoption by SMEs in Himachal Pradesh

Due to low level of penetration of ICT in SME sector, Indian SMEs are deprived of benefits like improved efficiency, better market linkages and enhanced customer services. Cloud computing has the potential to accelerate ICT adoption among SMEs, by making ICT accessible to the small businesses without incurring much costs and efforts. Cloud computing can prove to be very beneficial to SMEs. Flexible cost structure and delivery of computing services through internet can make cloud computing a unique proposition for SMEs. Other features such as scalability, flexibility and easy deployment process provide an opportunity for small businesses to get access to the most advanced & latest technologies at affordable cost. However, issues like lack of knowledge/awareness about cloud computing, poor internet connectivity, security & privacy concerns, lack of trust, and vendor lock-in prevent small businesses from adopting cloud computing. In spite of these concerns, cloud computing can still prove to be commercially viable option to SMEs. The primary purpose of this paper is to investigate key factors influencing SME's intention to adopt cloud computing in Himachal Pradesh, India. Findings of this work are intended to provide valuable insights for practitioners and researchers who are interested in spreading the usage & adoption of cloud computing among SMEs.