Barriers of Cloud Computing Adoption by Small and Medium Enterprises in Polokwane Municipality

Abstract

Small and Medium Enterprises (SMEs) are important to job creation and poverty reduction in South Africa. Although these businesses suffer from a high failure rate and the causes of failure include the non-availability of financial and information technology (IT) resources. Cloud computing is one of the ways to address the challenge faced by SMEs in adopting technological innovations. The study examines the adoption of cloud computing by SMEs in Polokwane Municipality. In addition, the study will determine the barriers to the adoption of cloud computing by these SMEs in Polokwane Municipality. The study used the quantitative approach with descriptive research design. Data was collected from two hundred and thirty SMEs based in Polokwane Municipality using self-administered survey questionnaire. The data analysis included descriptive and t-test statistics. The results reveal that SMEs are still engaged in traditional Information Technology Services as compared to innovative Information technology solutions. One of the major barriers to the adoption of cloud computing is lack of knowledge toward competitive IT solutions and security issues around cloud computing being another concern.  The study recommends that SME should be proactive in adopting cloud computing to reduce operational costs. Department of Small business and its agencies in collaboration with cloud service providers, must offer awareness and seminars to SMEs on information technologies resource planning like cloud computing services.