An Integrated Conceptual Framework of Cloud Computing Adoption in Small and Medium sized Enterprises in India

Abstract

Cloud computing is an innovative way of delivering relevant information and communication technologies (ICTs) to customers on demand and on a pay-per-usage basis throughthe internet. By using cloud computing, organizations get easy and affordable access to the latest ICTs, which subsequently help enterprises in refining their internal business procedures, enabling quicker communication with clients and improved and wider market reach. Besides providing relevant ICTs to the organizations in a cost effective manner, cloud computing offers various other benefits in the form of improved business continuity and back-up, easier implementation and maintenance process, and automatic provisioning of ICT resources as per the demand. All these benefits make cloud computing an attractive option for all such organizations which are looking for making optimum utilization of latest ICT without making heavy investments. Small and Medium-sized Enterprises (SMEs) in developing economies like India face many challenges in the form of limited capital, lack of skilled manpower, and low ICT usage. Due to these constraints, SMEs are not able to reap various benefits which modern ICT solutions offer. In such a scenario, cloud computing can be an appropriate option for such SMEs which are looking for improving their internal processes, communication with clients and business partners, and market reach through modern ICT solutions at minimum cost and efforts. Cloud computing thus, has a special significance for SMEs. Cloud computing, especially the public cloud, is particularly beneficial for such organizations which have limited finances, expertise and other resources required for implementing and using relevant ICTs. In spite of many benefits, the literature suggests that a very few SMEs have adopted cloud computing in developing economies like India (Malviya and Chakarborty, 2013; Bhat, 2013).