Investigation of Cloud Computing Barriers: A Case Study in Saudi Arabian SMEs

Abstract

Cloud Computing is arguably the most significant technological development after the Internet. It accelerated technology adoption and gave birth to new business models. More importantly, it is acting as a foundation for new technologies like the Internet of Things (IoT) and Artificial Intelligence (AI). The Cloud Computing paradigm provides a level playing field for Small and Medium-sized Enterprises (SMEs) as they are able to adopt technologies that were not affordable before. Governments, vendors and business support organisations across the world have a plethora of initiatives to encourage SME adoption of Cloud Computing technologies. Despite these initiatives, many SME decision makers are still hesitant to adopt the cloud. This research reports an engagement with 16 information technology (IT) managers working for Saudi manufacturing SMEs. This paper presents their perceived barriers to migrating their applications to cloud services.

Exploring of Potential of Cloud Computing for Small and Medium Enterprises

“…• Issues relating to the protection, confidentiality, laws and enforcement of data in SMEs [17,18,19,20,21,23,24] • Lack of data control in the case of a cloud emergency, such as losing customer information and data from the business profile [17,19,20,23,25,26,27] • It is crucial to consider the legal aspect of storage data outside companies regarding data ownership to prevent infringement of intellectual property [17,20,22,27,28]…”

“…• Inability to realise potential advantages due to a lack of technical resources, which include time, infrastructure, and IT expertise [17,19,25,26,27,29,30,31] • Lack of understanding and lack of awareness of cloud computing's nature due to low levels of knowledge of cloud computing, in turn, restricts SMEs to examine the advantages of cloud computing services for their businesses Challenges Description [18,19,21,25,26,27,29,31] • In terms of maintaining the business, SMEs are at risk when investing more in the cloud computing system. Owing to the shortages of staff and costs in the past, SMEs had some limitations in engaging in technical innovation [18,19,26,29]…”

“…• Internet technology is required for the service provided, which often means a certain safety risk. [17,25,27] • The algorithm and methods used to manage the cloud computing system are often unknown for most SMEs [17,30] • Integrating issues of the cloud computing system with existing SME systems [17,20,21,25] • The inadequate resources for the Internet involves internet connections that lack speed and internet bandwidth while using the cloud computing system [17,22,23,27] • Technology adoption is still very slow and limited, such as visualisation, implementation, specifications, interface, and performance expectation from SMEs [19,24,25,27,32,33] • None clear and standard guidelines for SMEs from a cloud computing company [34,35].…”

“…• Switching costs require extra funds to manage the cloud system, such as expert workers in IT to handle the cloud system and government taxes after implementing the system [17,26,22,38] • The increased cost of capital expenditure required to manage and maintain the cloud infrastructure through the annual compulsory subscription and upgrade of storage space [17,22,24,26,27]…”

Research Directions for Value Co-Destruction in Banking Digital Transformation

“…Digital transformation has recognized capacity to generate opportunities, while, as a social and economic trend, it forces public and private companies to adapt to the changes imposed by the diffusion of emerging technologies [1]. Its challenges affect individuals, organizations, ecosystems, and society.…”