Evaluating the benefits of cloud computing in small, medium and micro-sized. enterprises (SMMEs) within the North West Province in South Africa

Abstract

Cloud computing is becoming an essential tool in lowering Information Technology (IT) costs amongst Small, Medium and Micro-sized Enterprises (SMMEs). As such, amongst a myriad of challenges, SMMEs are faced with a general lack of resource capabilities, including the lack of Information and Communications Technology (ICT) infrastructure and skills. This further disadvantages the SMMEs' ability to compete with big business and industry peers. As such, cloud computing offers SMMEs the ability to access high level ICT services either through SaaS (Software-as-a-Service), PaaS (Platform-as-a-Service) or IaaS (Infrastructureas- a-Service) service delivery models. Cloud computing adoption amongst SMMEs is relevant in the sense that SMMEs can realise the full benefits of reduced capital expenditure, improved access to ICT systems, heightened security of data and low costs for versatile development amongst a myriad of cloud computing benefits. The overall intention is to ensure that SMMEs always have access to updated ICT services through the cloud, without having the burden of maintaining ICT infrastructure in-house. Based on this interpretation, this study analyses factors affecting cloud computing adoption amongst SMMEs, by use of a Conceptual Research Model based on the Technology-Organization-Environment (TOE) framework. This is informed by a survey distributed to SMMEs within the Ngaka Modiri Molema and Bojanala Platinum Districts of the North West Province. Chapter 1 of this study summarises the research and puts forward the problem statement, outlining in addition the research objectives and questions that underpin the study. Chapter 2 is the literature review section of the study, where we outline the full context of cloud computing in relation to SMMEs. This is followed by outlining the theoretical models and frameworks that inform the study where the Conceptual Research Model based on the Technology-Organization-Environmental (TOE) framework is presented, followed by a presentation of the research hypothesis. Chapter 3 outlines the research methodology, where the study takes a positivist epistemological approach through deductive means. Chapter 4 is the data analysis section computed statistically using SPSS 24 and lastly Chapter 5 constitutes the discussion and conclusion of the findings. As such, this study found that that the technological and environmental factors were significant, and affected cloud computing adoption positively. In addition, organizational factors were not significant and affected cloud computing adoption negatively.