A Study to Explore the Key Factors Impacting on Cloud Based Service Adoption in Indian SMEs

Abstract

This paper discusses the factors influencing Indian Small and Medium Enterprises' (SMEs) adoption of Cloud based services. This research, through an extensive literature review, analyzes the current situation, benefits, and challenges of Cloud based services adoption for Indian SMEs. It identifies and confirms the key factors (e.g., Cost reduction, relative advantage, security, regulatory support, firm size, top management support, technological readiness) that determine the adoption of Cloud based services by Indian SMEs, based on secondary research. The target population for this study is SMEs in India that are using or considering using Cloud based services, regardless of the field or industry. The theoretical basis for this study is the Diffusion of Innovation (DOI) theory, and Technology Organization and Environment (TOE) theory. These two technology adoption theories present a solid theoretical framework on which this study is based. This paper provides an understanding of the extent to which innovation characteristics, technology context, organizational context, and environmental context influence the decision of Indian SMEs to adopt Cloud based services.