Cloud Computing Technology Adoption: Challenges for SMEs, A Case of Selected SMEs in Tanzania

Abstract

The study aims to explore the challenges faced by SMEs during the implementation of cloud computing technologies and propose potential solutions. The primary objectives include identifying critical barriers, understanding their impact on small and medium-sized enterprises, and suggesting viable strategies to promote cloud adoption. The research employs a mixed-methods strategy that blends quantitative and qualitative techniques. Surveys are circulated among SMEs to acquire quantitative data, while interviews with IT professionals, industry experts, and SME owners are used to collect qualitative data. Statistical techniques and thematic analysis are employed for the study of qualitative and quantitative data, respectively. The study identifies several obstacles preventing SMEs from adopting cloud computing, such as concerns about data security and privacy, a lack of technological know-how, interoperability problems, an ambiguous return on investment, and difficulties with regulatory compliance. The importance of these obstacles is supported by quantitative analysis, which also emphasizes their frequency and effect on SMEs’ adoption of cloud computing. The results highlight the need for focused interventions to address the issues raised and encourage SMEs to embrace cloud computing. Specific training programs, incentives to offset start-up expenses, partnerships with service providers, legislative clarity, and knowledge-sharing activities among SMEs are examples of practical ideas. By removing these obstacles, SMEs will be better equipped to harness cloud computing’s revolutionary potential, fostering innovation and increasing their competitiveness in the digital age.