Benefits And Challenges Of Cloud Computing Technology Adoption In Small And Medium Enterprises (SMEs)

Dwininta Widyastuti, Irwansyah Irwansyah


In today's digital era and globalization, many small and medium business (SME) businesses are adopting cloud computing for the company's operations. Cloud computing is a growing data center technology in line with increas-ing traffic on the internet in the era of the Internet of Things (IoT). This technology overcomes the weaknesses of conven-tional servers for speed, scalability, and efficiency. However, there are still SMEs who are not sure of the benefits of cloud services. Therefore, this research is conducted to explore the opinions of SMEs about the benefits of cloud computing ser-vices in their business operations that encourage them to adopt this service. The qualitative research method is conducted by interviewing the top management of a number of SMEs engaged in the information and communication technology (ICT) industry. SMEs are domiciled in Jakarta and Bandung, Indonesia and have been using cloud computing platform services. The results found that the most perceived benefits of cloud computing are cost savings because it can reduce cap-ital expenditures, such as procurement of computers with high performance and purchase their own server by SMEs. On the other hand, the service enhances the company's internal organizational processes to accelerate decision making, expand markets, and speed up communication with customers. However, the security aspect and the limited provision of infrastructure remain a challenge for the adoption of cloud computing in SMEs in Indonesia. The company's effective strategy is considered to be able to minimize the negative impact of this challenge.

Full Text:



F. Shimba, “Cloud Computing: Strategies for Cloud

Computing Adoptionâ€, Dissertation : Doctoral in Computing,

Dublin Institute of Technology, 2010.

M. Armbrust,A. Fox, R. Griffith, A.D. Joseph, R.H. Katz, A.

Konwinski, G. Lee, D.A. Patterson, A. Rabkin, and I. Stoica,

“Above the Clouds: A Berkeley View of Cloud Computingâ€,

Communications Of The Acm, 53 (4), 2010.

K. Hashizume, D.G. Rosado, E. Fernández-Medina, and E.B.

Fernandez, â€An analysis of security issues for cloud computingâ€,

Journal of Internet Services and Applications, 2013.

I.M. Khalil, A. Khreishah, and M. Azeem. “Cloud

Computing Security: A Surveyâ€, Computers: 3(1), 1-35, 2014.

F. Pfarr, T. Buckel, and A. Winkelmann, “Cloud Computing

Data Protection – A Literature Review and Analysis.â€, 47th


International Conference on System Science, 2014.

I. Mikkonen and I. Khan, “Cloud computing - SME company

point of viewâ€, Management Challenges in the 21st Century (pp.

-79), Bratislava: Vysoká škola manažmentu, 2016.

C. Low and Y. Chen, “Understanding the determinants of

cloud computing adoptionâ€, Industrial Management & Data


(7), 2011.

R. Rahayu and J. Day, “Determinant Factors of E-commerce

Adoption by SMEs in Developing Country: Evidence from Indonesiaâ€,

Procedia - Social and Behavioral Sciences 195 p.142 – 150,

V. Kotelnikov, “Small and medium enterprises and


United Nations Development Programâ€Asia Pacific Development

Information Program and Asian and Pacific Training Center for

Information and Communication Technology for Development,

Bangkok, 2007.

OECD, “Enabling The Next Production Revolution: The

Future Of Manufacturing And Services - Interim Reportâ€, Paris:

Meeting of the OECD Council at Ministerial Level, 2016.

N. Ajith Singh and M. Hemalatha, “Cloud Computing for

Academic Environmentâ€, International Journal of Information and

Communication Technology Research: 2 (2), 2013.

J. W. Rittinghouse and J.F. Ransome, “Cloud computing:

Implementation, management, and securityâ€, Boca Raton: CRC

Press, 2010.

T. Rao, N.K.N Venkat, R. David , and M. Sathya, “A New

Computing Environment Using Hybrid Cloudâ€, Journal of Information

Sciences and Computing Technologies 3 (1), 2015.

A. Abdollahzadegan, A.R.C Hussin, M.M. Gohary, and M.

Amini, “The Organizational Critical Success Factors for Adopting

Cloud Computing in SMEsâ€, Journal of Information Systems Research

and Innovation (JISRI) 4 (1), 2013.

I.R. Senarathna, “Cloud Computing Adoption by SMEs in

Australiaâ€, Dissertation : Doctor of Philosophy, Deakin


G. Lawton G “Moving the OS to the webâ€, Computer

(3):16–19, 2008.

M. Stieninger and D. Nedbal, “Diffusion and Acceptance of

Cloud Computing in SMEs: Towards a Valence Model of


Factorsâ€, 47th Hawaii International Conference on System


L.P. Willcocks, W. Venters, and A. Edgar, “Cloud and the

future of business: from costs to innovation, London: Accenture In

association with The Outsourcing Unit London School of Economics

and Political Science, 2012.

M.J. Pallivathukal, “Adoption of Cloud Computing by SMEs

in emerging markets (India)â€, Dissertation Submitted to Dublin

Business School, 2016.

Rashmi, S. Mehfuz, and G.Sahoo, “A five-phased approach

for the cloud migrationâ€, International Journal of Emerging

Technol-ogy and Advanced Engineering, 2012.

M.H. Yew, and J. C. Goh, “An SME's Adoption of a Cloud

Based Integrated Management System (IMS) When Certifying

against Management System Standards (MSS), Australasian Conference

on Information Systems 2015, Adelaide, 2015.

D. Vrsajkovic, “Evaluating Determinants of Cloud

Computing Acceptance in Croatian SME Organizationsâ€, Thesis :

Rochester Institute of Technology, 2016.

A. Abdulaziz, “Cloud Computing for Increased Business

Valueâ€, International Journal of Business and Social Science 3 (1),

Y. Alshamaila and S. Papagiannidis, “Cloud computing

adoption by SMEs in the north east of England: A multiperspective

frameworkâ€, Journal of Enterprise Information

Management 26 (3), pp. 250-275, 2013.

H. Yang and M. Tate, “Where are we at with Cloud Computing?

: A Descriptive Literature Reviewâ€, ACIS 2009 Proceedings,

William Stallings, “Cryptography and Network Security,

Principles and Practicesâ€,Volume, Prentis Hall, 2007.

P. Cowhey, M. Kleeman, M. Altman, A. Gillwald, J.

Mariscal, and J. Seddon, “Unlocking the Benefits of Cloud

Computing for Emerging Economies— A Policy Overviewâ€,

S. Marston , Z. Li, S.Bandyopadhyay, J. Zhang, A. Ghalsasi,

“Cloud computing — The business perspectiveâ€, Decision


Systems 51 p.176–189, 2011.


  • There are currently no refbacks.