Challengesof implementing cloud computing in SMEs
Challengesof implementing cloud computing in SMEs
Cloudcomputing is a combination of services that give base assets usingweb media and data storage on server deemed third party. Small andmedium enterprises (SMEs) are said to be the life blood of anyenergetic economy (Caldeira and Ward, 2003). They are known to be thequiet drivers of a country`s economy. Cloud Computing reception hasencountered an extensive rate of development since its rise in 2006.By 2011, it had turned into the top technology need for associationsoverall and as indicated by some heading industry reports the cloudcomputing business is assessed to reach $241 billion by 2020(Aljabre, 2012). Purposes behind selection are multi-fold, includingfor instance the normal acknowledgment of profits relating to costdecrease, enhanced versatility, enhanced asset use, laborerportability and joint effort, and business progression, among others.Research into cloud computing appropriation needs to date essentiallycentered around the bigger, multinational enterprises. On the otherhand, one key region where cloud computing is required to holdsignificant guarantee is for the Small and Medium Sized Enterprise(SME) (Armbrust etal.,2010). SMEs are perceived as being characteristically not the same astheir substantial firm partners, not slightest from an assetobligation viewpoint and thus, cloud computing is accounted for tooffer huge profits for SMEs through, for instance, encouraging adiminishment in the money related trouble connected with newtechnology reception. This paper shows the difficulties that SMEsface while implementing cloud computing (Aljabre, 2012). In the cloudcomputing environment the SMEs need not to claim the framework sothey can refrain from any capital use and rather they can use theassets as an issue and pay according to their use. We consider theresults of the paper to be supportive to our proposed research idea(Aljabre, 2012).
Thereare numerous changes that occur globally in terms of enterprisesystems and industries as these areas need very unique solutions. Theindustrial problems seem to be complicated and need a lot offinancial support. Availability of expertise and skills results inadditional problems in the industry.
CloudComputing is defined by the US National Institute of Standards andTechnology (NIST) as:
“Amodel for enabling ubiquitous, convenient, on-demand network accessto a shared pool of configurable computing resources (e.g. networks,servers, storage, applications, and services) that can be rapidlyprovisioned and released with minimal management effort or serviceprovider interaction” (Mell and Grance, 2011, p.2).
CloudComputing accords organizations the chance to get to on-demand ITservices utilizing Internet technologies on a free or pay-everyutilization premise, this enables them to enhance their vital andtechnological nimbleness, and responsiveness in the worldwidebusiness environment (Son et al, 2011). Consequently, Cloud Computingreflects "a sea change—a profound and perpetual move in howcomputing force is produced and consumed"(McAfee, 2011). Cloudcomputing advanced to turn into the top technology need fororganizations around the world (Gartner, 2011), with the figure forcloud services in 2013 estimated to be $44.2bn (ENISA, 2009).
Cloudcomputing brings an organization advantages, for example, diminishingframework working costs and shortening the framework development andarrangement time. Nonetheless, there is a solid necessity for theestimation of "trusted (high unwavering quality)" since thecontrol of data gets to be troublesome in cloud computing. There aregreat reasons why the Cloud is an enormous pattern. Enterprise ITcherishes the pay every use, "utility" model ofprovisioning computing force and capacity. The base and the cerebralpain of overseeing it, both have a place with another person (Avisonetal.,2004).
Inthe cloud computing environment the SMEs will not need to claim thebase so they can refrain from any capital consumption and rather theycan use the assets as a service and pay according to theirutilization of the assets gave by the cloud (Rittinghouse andransome, 2009). Saas will give a chance to the SMBs to robotize theirbusiness by diminishing their interest in IT base (Rao).cloud basedservices helps the commercial ventures to lessen their cost that areincluded in on-reason ERP arrangements, for example, fittings,programming, upgradation, preparing and authorizing costs.Additionally long implementation cycles with consistent upkeep costsadds to the aggregate cost of conventional ERP (Aggarwal andbarnes,2010). Cloud computing is giving numerous chances to differentorganization that is helping them to create cost compelling plans ofaction. Such models help the SMEs to inspire their business in aviable and cost effective way (Avison et al., 2004).
Owingto numerous benefits that accrue as a result of use of cloudcomputing and their continuous applications, the study was motivatedto carry out the research in SMEs. Previously, most studies hadfocused on large organizations yet the application of cloud computingin SMEs has equally had numerous benefits. Through this study, themanagers and owners of SMEs are bound to gain given that they will beprivy with the benefits and challenges that come with implementationof cloud computing for successful business.
Giventhat the study applies qualitative method of analysis, it is assumethat reality is subjective and that the society are more of personalconstructs that results from creation of individuals. Additionally,it is assumed that the research is guided by the researcher’svalue, theories and hypotheses.
Thestudy assumed that the responses given by the top managers who wereinterviewed were honest and truthful.
Withmuch attention given to the research aims and objectives outlined inthe previous sections, this study shall be guided by the question,‘What are the challenges of implementing Cloud Computing in SMEs?To find an answer to this question, answers from several questionsexploring different aspects of implementation of Cloud Computing indifferent organizations shall be joined together to make a wholecomplete argument from which a credible conclusion can be validlydrawn. These questions are:
1. Whatare the motivators of adopting Cloud Computing?
2. Whatare the major benefits for SMEs if they adopt cloud services?
3. Whatare the main challenges and concerns towards adoption of CloudComputing for SMEs?
4. Whatkind of cloud services are/will be most popular amongst SMEs?
Thedissertation is organized as follows. Chapter 2 gives a detailedliterature review of the cloud computing technology. These includethe manner in which computing can help SMEs develop unique capacity,how SMEs develop cloud base resource, challenges of implementingcloud computing in SMEs in technical context, organization contextand environmental context. The theories related to adoption ofInformation Technology and cloud computing in SMEs is also explored.Subsequently, Chapter 3 presents the method used to carry out primaryas well as secondary research for this study. It presents a detaileddescription of the process the author undertook to obtain informationand answers to the research questions. Chapter 4 presents results andfindings from both primary and secondary research. The primaryresearch results were obtained from analysis of data collected usingthe semi-structured interview. Consequently, Chapter 5 discusses thefindings presented in Chapter three. The findings from the currentstudy shall be compared and contrasted with various previous researchfindings to highlight similarities and differences in findings.Chapter 6 concludes the Thesis and overviews the key findings of thestudy. Additionally, recommendations are advanced based on thefindings and discussions made earlier.
Thischapter presents the method used to carry out primary as well assecondary research for this study. It presents a detailed descriptionof the process the author undertook to obtain information and answersto the research questions. The research aims at establishing thechallenges of implementing cloud computing in SMEs. It describes theresearch design, target population, sampling design and size, datacollection instruments, data analysis and interpretation tools andlimitations of the study.
Todo this, the research will take after an inductive approach whichconcentrates on creating its own particular theory from discoveriesacquired amid research like observation or surveys. To have aninductive approach there must be work done to go down the theory thatyou concoct. The inductive research is about picking up anunderstanding of phenomena and implications of diverse concepts. Theresearcher has a greater part and is included substantially all themore all the while and there is no worry to generalize (Saunderset.al. 2009). This study intend to explore difficulties ofactualizing distributed computing in SMEs through data collection andanalyzing by framing our own particular theory, consequently ourresearch approach is inductive.
Anexplanatory design approach will ensure the variables involved in theresearch, business and technological elements are related. Thisresearch will rely on both primary and secondary data collectiontechniques.
Withmuch attention given to the research aims and objectives outlined inthe previous sections, this study shall be guided by the question,‘What are the challenges of implementing Cloud Computing in SMEs?To find an answer to this question, answers from several questionsexploring different aspects of implementation of Cloud Computing indifferent organizations shall be joined together to make a wholecomplete argument from which a credible conclusion can be validlydrawn. These questions are:
What are the motivators of adopting Cloud Computing?
What are the major benefits for SMEs if they adopt cloud services?
What are the main challenges and concerns towards adoption of Cloud Computing for SMEs?
What kind of cloud services are/will be most popular amongst SMEs?
Asemi-structured interview was utilized with the point of establishingchallenges of cloud implementing cloud computing in SMEs. Theinterview was distinct and systematic in nature.
Thefocus is on using qualitative data collection techniques. Qualitativedata is data that is focusing on delivering information that can bedescribed with terms and theories. It is not like quantitativeresearch that focuses on the numbers behind a survey or somethingsimilar. It focuses on delivering numbers and information in terms ofquantity. The most used methods of collecting data in qualitativeresearch include triads, focus groups, dyads, ethnographicparticipation and/or observation, bulletin boards, uninterruptedobservation, and in-depth interviews. Interviews as a qualitativemethod will be used to overlook the outcomes of the researchhypothesis and develop further study to test and support the research(Saunders et.al. 2009). Interviews are preferred due to theirvalidity and reliability. The interviews will be simple and both openand closed-ended to enhance high response rate and get moreinformation from the users.
Qualitativeresearch is conducted by constructing complex holistic pictures ofthe theory under investigation (Abawi, 2008). According to Mora(2010), qualitative methodology is exploratory and is commonly usedwhen the researcher does not know what to expect. Researchers usingthis method seek to know deeper truth. Unlike quantitative research,qualitative method assumes that multiple realities can exist in anygiven situation. Often, the researcher only has rough ideas of whatto expect (Neils 2007). Neils argues that, the research design of aresearch done through qualitative method emerges in the process ofthe research.
Qualitativeis preferred over quantitative because data used is based mainly onthe categories of meaning as given by the respondents. Given that ournumbers of interviewees are small, it is the most appropriate method.Additionally, it aids in the description of complex phenomena. Usingthe qualitative method, cross-case comparisons and analysis can bedone. Through qualitative means, the individuals’ experiences aswell as description of understanding of the concepts under inquirycan be made. Through qualitative approach, rich detail of phenomenais got and can easily be related to areas of interest. Through themethod, the researcher gains insightful perception on howparticipants interpret constructs.
Ourresearch will comprise of both primary and secondary data. Primarydata will be data gathered by the researcher utilizing distinctiveroutines. The primary data that is gathered are regularly moredependable because of that you know where the data originates fromand been emulating the movement the distance. Primary data sourcescould be (Kelly 2005):
Observation- when observing a framework or a research item/field to see the points of interest that is paramount to a research. Requires a great deal of assets and time.
Surveys- composed questions that help you gather enormous measures of data through conveying or giving a measure of the populace the survey.
Interviews- When interviewing you have an individual meeting and can analyze all the articulations of the research object, additionally the questions can be trailed by different questions, it is simpler to assess answers.
Logs- Can give great data about the framework execution in a framework, for example, mistake logs, exchanges logs and complaint logs.
Secondarydata will be data that is gathered from outer sources that as of nowexist. The main thing that must be carried out is to search for thedata you require. Secondary data has the upside compared to primarythat it is less expensive to gather yet the dependability, legitimacyand exactness is not as extraordinary. You don`t know where the datareally originates from and can`t completely trust is against primarydata where you have more control. Secondary data is simpler toacquire and less expensive to get additionally. A few cases ofsecondary data (Kelly 2005):
TV, Radio and Internet sources
Magazines, Newspapers and Reviews
Stories told by individuals you know
Thereis a third data source called tertiary data that is the questinstruments for acquiring secondary and primary data, for example,reference books and files. Regularly it is utilized as a part ofwriting hunt when not knowing where to begin looking for a particularpoint (Saunders et.al. 2009).
Ourprimary data collection will comprise of interviews in diversestructures and the secondary data collection will be late articles inthe zone of distributed computing, web sources and writing that isinside our field of research.
Thereare three separate sorts of studies that can be made, informative,descriptive and exploratory, which we will be centered around.Exploratory research answers the question "what" whiledescriptive needs to really depict something and illustrative asksthe questions "for what good reason" and "how"(Chuang, Nakatani & Zhou, 2009). As our research question isabout figuring out the difficulties of actualizing distributedcomputing in SMEs and the explanation for them, our research is anexploratory research (Chuang, Nakatani & Zhou, 2009). We willconcentrate on interviews specifically with the source, for thissituation the suppliers and clients of distributed computing. Thestarting writing we found was most articles and books depictingdistributed computing furthermore numerous papers about thedisadvantages and profits. We think our approach to our research willhelp us answer our research question in a decent manner. Thetechniques we intend to utilize we feel fit best what we need to getfrom this examination.
Interviewsare possible in diverse ways with regards to research. Open ended,closed, standardized, general and informal interviews. We havedecided to assemble the majority of our data and data in type ofinterviews on the grounds that it encourages getting to reallyconverse with somebody around a subject. It could respect haveanother social occasion technique to show signs of improvementdependability yet interviews functions as a decent source (Saunderset.al. 2009).
Wehave directed interviews and our approach was generally informal inthe first interview with some starting questions that were carriedout in heretofore. The reason for the approach was that we needed tohave the interviewees to participate and speak uninhibitedly aboutthe subject in their eyes and attempting to get however much data ascould be expected from the sessions. We recorded the interviews fromthe discussion so we had it in content. It must be carried outimmediately to not lose any data. This methodology was carried outonce however precisely to make it more dependable furthermore so wedidn`t lose anything.
Theaim of this study is to find out challenges of implementing cloudcomputing in SMEs. Hence, the survey sample requires being arepresentative of the SMEs organizations’ demographics. Due to thesegmentation of the Malaysian and Iranian market and the size of thepopulation, such a representative sample would have relatively manyrespondents. For this particular case, information could only becollected from people who had benefited or had implemented cloudcomputing in their business. The fully completed interview forms wereused and analyzed for the study.
3.6Target Population and Issues with Data Collection
Incarrying out the research, the industries and management that havecarried out cloud computing were analyzed. 12 interviews were donemainly targeting the top management level. The individuals at topmanagement hailed from different backgrounds and were involved incountries operating in Malaysia and Iran. The 12 interviews are inorder given that they are representative across the two countries.There is no need for more or less as the interviews done are in depthand require thorough analysis for more insightful and detailedinformation. The duration as well as the method of data collectionvaried from one individual to another depending on the availabilityand remoteness of such individuals. For the Iranian interviewee therewas an option of having the interview carried out in either Persianor English.
Theinterview questions were originally written in English and thentranslated to Malays and Persian. The questions were written in asimple language considering that the respondents had diverse levelsof education. In addition, as much as the questions are arranged intosections, an effort was done to order them in levels of increasingcomplexity. The questions were then tested through reading them outloud to a group of fellow students who made contributions that wereused to review the survey instrument. In this process significantchanges were made in reducing ambiguity in questions, potential biasand question complexity. After the interview, a copy was sent to theinterviewees.
Accordingto Creswell (2003), secondary research is the process of gatheringdata that has been collected by another person and using it in astudy. Prescott explains that secondary research involves collectingdata from third party sources. Some of these third party sourcesinclude company sales and accounting records, articles in magazinesand journals, company websites, research reports and other onlinesources of data. Secondary data for this study was collected fromvarious sources. Effort was put to select and use current data fromcredible sources.
Secondarydata is considered given its economical nature, there is a lot ofeffort and expenses that are saved when the researcher opts for themethod. With the reference to secondary materials, primary datacollection is made more specific given that the researcher is able tocompensate for the gaps and deficiencies. Secondary data alsoprovides a basis for comparison of data collected by the researcher.
Theresearcher has access to a university library. The library isequipped with various academic sources including books, journals,periodicals and newspapers. In addition to these sources, some of thedata used in this study was collected from the internet. In additionto the data collected from these sources, the researcher acquiredinformation about the subject under study. This made the analysis anddiscussion of the results easier due to the resulting wide knowledgeof the subject.
Inthis study, secondary data was sought to complement primary data. Thesecondary used is grounded on the literature review. In this way,data that could not be collected or required complex processes tocollect through a survey was obtained. The information collected fromsecondary research helped to incorporate contextual data in theanalysis of results obtained.
Permissionwas requested before carrying out the research and theirorganizations fully informed. Additionally, the research was carriedout in accordance to the standards of defined by the Universitysenate for postgraduate studies. The respondents were assured oftheir anonymity and that copies were to be sent to them after theinterview results are out. Additionally, questions were framed in amanner that allowed for non-personal touch and mutual respect wasobserved, hence the questions were not personal.
3.9Method of Data Analysis
Thereare numerous diverse techniques for assessing and analyzing dataacquired in a research. There are unique techniques that fit forquantitative exploration and those that fit for qualitativeexamination. The data analysis technique must match the generalexamination approach and the technique for collection. There arevarious approaches to assess and analyze data you acquire. The dataanalysis can frequently be either confirmatory or exploratory whenanalyzing data. Either explore the range or affirm late studies(Jackson, Purc-Stephenson, and Gillaspy 2009).
Exploratorydata analysis is an approach that depicts data in a finer structureso it is less demanding to get it (Chuang, Nakatani & Zhou,2009). We will concentrate on analyzing our interviews and the datawe gathered from meetings with companies alongside the secondary datagave straightforward from the source furthermore outside optionaldata that we have discovered audits, articles and other writingidentifying with distributed computing (Jackson et.al 2009).
Besideswe will utilize three separate approaches within data analysis toanalyze the exploratory data (Saunders et al., 2007.). Theseapproaches include data decreasing and coding, presentation and thenanalysis and interpretation. Initially the data diminishmenttechnique where you decrease the data and compress the data you haveacquired in interviews. After that the step is to utilize datapresentation to sort out the data that have been diminished in visualshowcases. At the point when experiencing this procedure it issimpler to contemplating the finishes of the results. The crude datais much less demanding to reach determinations from when decreased(Saunders et al, 2007).
Atthe point when analyzing data it is paramount for us to comprehendthe interview we have done and all the data we have gotten from it.We will analyze data so the result will be straightforward for ourcrowd. For SMEs and suppliers it is critical that you comprehend theaftereffects of an examination like this. Moreover the center oughtto be on the diverse cases we have been given and the interviews wehave done to get a decent review to answer the inquiry we have beendoing examination on.
Theanalysis technique that is most fit to our approach is the datadisplay and analysis approach. It is most fit to analyze by examiningthe answers from the interviews alongside optional data to get moredata sources and show signs of improvement dependability. The datawill be isolated into classifications and exhibited and connected tothe theoretical schema. The interviews will structure a supplier caseand a client case on the subject that is guided to small and mediumenterprises (Caldeira and Ward, 2003).
a)Bias from the respondents to just fill the surveys to satisfy thespecialist. The specialist directed a face to face interview toelucidate the reason and target of the study.
b)On taking a gander at the restricted time which the specialist neededto direct the study, respondents may suspect that the examinationdiscoveries are to be utilized for different purposes while othersare liable to defer the polls in view of occupied calendars. Here thescientist utilized secured letter from the Graduate and ResearchCenter to alleviate the conclusion.
c)The scales in the survey were embraced from different studies done indistinctive situations from that of the United Kingdom, which isprone to cause inclination. The scientist reveled specialists in thefields of experiential marketing, purchase behavior and experientialvalue on client loyalty to direct the scales adjusted to fit thenature`s domain. Trepidation of giving private data as saw by theassociation they work for. Here the scientist guaranteed them of atmost great confidence with supporting archives for undertaking thestudy.
d)The way the survey was outlined may restrain extra reaction. This washowever moderated through provoking the respondents to give moredata.
Informationand data used in this study was collected from both primary andsecondary research. A survey was used to collect primary data. Thesurvey instrument was drafted and reviewed several times to eliminatepossible sources of bias and ensure that it would collect allinformation required. It was taken through several tests including areview by colleagues and a pilot study before the final draft wasdeveloped. A stratified sampling method was employed to obtain arespondent sample. Secondary data was collected from various sources.This data was used to complement primary data collected through thesurvey. As outlined in the previous sections of this chapter, severalsteps were taken in the processes of research design, respondentssampling and selection of secondary data sources to ensure highaccuracy of results and reduce bias. The next chapter presents theresults obtained from primary and secondary research.
CHAPER4: FINDINGS AND RESULTS
Thischapter presents results and findings from both primary and secondaryresearch. The primary research results were obtained from analysis ofdata collected using the semi-structured interview outlined inappendix (1.). The secondary research results presented here in beloware findings made by previous researchers concerning some aspects ofthe subject under investigation and they are grounded on theliterature reviewed in Chapter 2. As explained in the previouschapter, secondary research was necessitated by the need to providesome contextual aspects and historical data on the challenges ofimplementing cloud computing in SMEs. Hence the secondary researchwill complement the primary research by providing contextual evidencefrom previous studies.
Atotal of 15 interview requests were sent to top position managerswith different background who are involved in different industries,operating in different countries like Malaysia and Iran sampledfollowing the sampling procedure outlined in chapter three above. Outof this, 12 top position managers responded and the interviews weresuccessfully carried out. This represents a response rate of 80%.This response rate was viewed as a success especially consideringthat time considerations limited the response period given to therespondents for participating in the interviews. The success can beattributed to the corroboration with heads of various organizationswho were requested to encourage people associated with theirinstitutions to participate in the survey. The interviews werecarried through different methods that were convenient to themanagers and these included through telephone, Online via Skype,through sent mails, video chats. Most of the interview time rangedbetween 30 to 60 minutes depending on availability and ease of use ofinterviewing method. The data collected from these interviews wasanalyzed and percentages for all responses for each of the questionswere calculated. The data is presented using various statisticalmethods of data presentation. Brief elaborations of the aspects ofdata collected are also provided.
Thesampling procedure adopted was designed to arrive at a representativesample of the SMEs that face challenges in their implementation ofcloud computing. Such a sample would require that the organizationsbe of different backgrounds financially and geographicallydifferent sizes and be of different enterprises. Top positionmanagers interviewed properly understand the concept of cloudcomputing and their SMEs have adopted cloud computing be representedin the sample.
Thefirst question sought to investigate the industry they were involvedin. Some of the industries where the interviewees were from includedAutomobile, Rubber, IT, Tradings, Telecommunication, Food, andEducation industries. Three of the interviewees were from ITindustry, 2 from Telecommunication, 2 from Rubber and AutomobileIndustries and the rest 1 each.
Thisquestion sought to find out the position of the interviewees in thecompany or SMEs that they worked for. The interviewees served at thetop level of the organizations or had previously served and theirpositions included: Chief Operating Officer, Marketing Manager,Member of the Board, CEO, Former CEO, Chief Operating Officer,General Manager. Most of the individuals were CEOs of their companieswith 4 CEOs being interviewed.
Size of Enterprise
Thisquestion was to establish the sizes of enterprise that theinterviewees were in. Most of the enterprises were small with staffpopulation of less than 50 members (Caldeira and Ward, 2003). Out ofthe organizations, only three had 50 and above staffs hence could betermed as Medium size while the rest had less than 50 workers withsome employed indirectly and others on full time while others on parttime. The highest staff population was 220 members.
Inthis question, the interviewees were to give information whethertheir firms operate domestically or across the national borders. Outof the 12 interviewees, only three confirmed that their organizationsworked beyond the borders with the rest (9) just working within theirdomestic markets. However, one Automobile firm operating within thedomestic market attested to its consideration for exploiting theinternational markets.
Age of Enterprise
Thisquestion sought to find out how long the enterprise or business hasbeen operational. The enterprises have been operational for quitesome time with a good number of them having operated for more than 10years. Notably, most of the IT industries have operated for 20 yearsand above with two of them having operated for 20 and 23 years.However, the least number of years that the enterprises have operatedare 2 years.
Who is responsible for decision making in IT securities and innovations
Thisquestion sought to find out the person responsible for decisionmaking in IT securities and innovations. In most of the instances, itis the CEOs who are charged with the responsibility of makingdecisions in line with IT securities and innovations. Otherindividuals who are part of this decision making process includeOperational Manager, IT Manager especially in IT firms, and COO.
Which category would describe your firms’ situation best in term of cloud computing adoption?
Aclosed question was put across for the interviewees to establish theposition of the firm in terms of cloud computing. 7 out of the 12interviewees agreed that the firms had adopted the use of cloudcomputing and were willing to continue. Most of them had adopted itsuse in the past 5 years. There are 4 firms that have not adopted butthey have put the adoption under consideration. While waiting toadopt, some of the reasons behind their move is to allow for businessexpansion while others are still looking for trustworthy provideroffering reasonable services. For the Trading firm, they think theuse of cloud Computing is not necessary for them.
Reasons for Adoption of Cloud Computing
Thisquestion sought to find out the reason for adoption of CloudComputing for the organizations that have already adopted and thosethat are yet to adopt them in the next five years. All theinterviewees who had adopted the use of Cloud Computing gave costreduction as a reason. Cost reduction was to be useful in avoidingcapital expenditure in hardware, software, IT support, InformationSecurity by outsourcing infrastructure/platforms/services (ENISA,2009). Other reasons given by most firms included removaleconomic/expertise barriers impeding to modernize business processesby the introduction of Information Technology, controlling marginalprofit and marginal costs, acting as a regular backups and 24/7maintenance by supplier (Gartner, 2011). The other main reasonsincluded increasing computing capacity and business performance,flexibility and scalability of IT resources as well as unlimitedstorage capacity. The three last reasons mainly applied to the IT andAutomobile firms.
Which solution do you see as the most suitable for an SME?
Thequestion sought to find out the solution most suitable for an SMEbetween private, public, partner or a combination of various sources.Out of the 12 interviewees, 4 stated that private solution wassuitable, 1 was for the partner and 1 was for the combination ofprivate and partner. On the other hand, 6 other members were for thepublic solution for the SMEs.
Layer of Cloud Computing
Theinterviewees were to give the layers of cloud that they are likely toapproach amongst Saas, Paas, Iaas and any other that might exist. Themost preferred layer of cloud computing is Paas then Saas and Iaas. 6interviewees preferred Paas, 4 Saas, and 2 remaining Iaas.
Outsourcing to Multiple Providers
Theinterviewees were to affirm whether they would be in a position tooutsource to multiple providers and give reasons for their decisions.Most of the interviewees said that they would not outsource tomultiple providers. Some of their reasons included reduction ofsecurity and increases risk of data loss (ENISA, 2009). Othersthought that it is easier to deal with issues and handling cloudunternally rather than outsourcing it. Some did not find it veryconvenient decision as data might be at a higher risk. For anenterprise with more than 150 staff like Automobile, it is morelogical to rely on internal capabilities than multiple outsourcing.Those who supported outsourcing to multiple providers thought that itwas a good idea, since they could get more support. Additionally, itreduces the risk of dependency to one providers, and in SME caseincreases the power of negotiation. For some firms it was becauseeach provider has its advantages and disadvantages while othersthought that sometimes the support from current provider is notsatisfactory (Bharadwaj, 2000).
Disaster Recovery Options
Individualswere to give the disaster recovery options that best suit them. Mostof the firms preferred a contingency plan based on internal resources(i.e. leveraging services/platform/infrastructure already in use‘before the Cloud’) as their preferred options with a few rootingfor fully outsourced disaster recovery and business continuity.
IT services/Applications that are to use Cloud Computing
Thequestion sought to find out from the interviewees the IT applicationssupporting business processes that are likely to be outsourced to aCloud Computing Service Provider in their companies. The IT servicesmost outsourced included Human resources, payroll, call centers andmail servers. Others though minimally used included projectmanagement, accounting and finance, sale management and procurements.Most IT and Telecommunication industries used them in call centersand mail servers.
Concerns for adopting Cloud Computing
Theinterviewees were to give their concerns as far as adopting CloudComputing is concerned. The concerns were varied with most of themgiving the reasons as data transfer (Migration), uncontrolledvariable cost and degree of Trialability (to what extent this newtechnology could be tested and practiced before fully adopting it).Other reasons included unclear scheme in the pay per use approach,loss of control over data, privacy and costs
Contribution of this research to knowledge
Theimplications of the research findings for SME owners/managers can benoted as the following:
SME owners need to better understand cloud services and perhaps the underlying mechanisms to some extent and to have realistic expectations from different cloud services. They also need to have a clear understanding of their organization requirements before making any decision on particular cloud offerings.
SME owners need to investigate the security measures implemented by the cloud providers before moving their sensitive data to cloud (ENISA, 2009).
Subsequently, the implications of these findings for service providers can be listed as the following:
Service providers need to quickly adapt the latest solutions that can assure SMEs regarding their data security and confidentiality. Such solutions can be originated from third party organizations, such as, Cloud Security Alliance (CSA) or standardisation bodies.
The overall cost of ownership for cloud services targeting SMEs should be maintained low.
Service providers need to increase the awareness and perceived advantages of different cloud services amongst SMEs. This should particularly be focused on services that currently are less known or unpopular.
Difference Between Public and Private Clouds
Publicclouds are the types that depend on physical hardware that is shared.Usually, public clouds are property of third party providers (Hofmannand Woods, 2010). This means that there are no hardware costs that abusiness would incur. One benefit of this type of cloud is the speedin which IT resources can be deployed. Additionally, the cloud hasthe benefit of the utility bills that comes with its provision.Therefore, by having the costs of infrastructure spread across anumber of users, each of such users is able to operate on a low cost.This method of operation is formally known as pay as you go approach(Hofmann and Woods, 2010). The major disadvantages and drawbacks ofthis type is lack of control for the companies given that it isprovided by third parties. Additionally, its speed is slow given thatit is based on internet connection. There is lack of investment bythe companies since they rent the service from a third party provider(Hofmann and Woods, 2010).
Theprivate cloud is a collection of computing systems that has beensecured, both physically (data center) and logically, usingcombinations of Virtual Private Networks (VPN), firewalls and,regularly, private leased line data connections that are installed todirectly connect a company to its cloud service provider. A privatecloud is a customized infrastructure that is purely made to suit abusiness and mostly it is hoisted on-site or at times at the datacenter of a service provider (Grossman, 2009). The benefits ofprivate clouds include its ability to ensure agility in itsdeliverability, scalability and its efficiency. Additionally, privatecloud provides greater control and security thus making it bestsuited for larger business or business with strict data as well asstrict rules. With private clouds one is able to tailor make thestorage and networking components that match the requirements of thecompany. Private clouds are more expensive than private clouds owingto their hardware and personnel maintenance requirement. The otherdisadvantages are the capacity ceiling given the limited space at theorganization of use (Grossman, 2009).
Limitation of this research
Thelimitations of this study are to an extensive degree identified withthe methodologies that are utilized. With respect to implementationand assessment of cloud computing in the SMEs, one ought to note thatit may not be conceivable to do a study for many SMEs like 100. Thiswas primarily because of the cost requirements of implementation andthe fact that, qualitative research employed is involving and wascarried out across border, two countries.
Inthis manner, albeit most efforts are given to choose 12 SMEs fromdiverse areas with distinctive size and IT prerequisites, still, theinput originating from those associations may be representative tothe SME`s notions about the cloud experience.
Tohave the capacity to have bigger and more various criticism fromSMEs, the studies were carried across two countries, Malaysia andIran. Luckily, the quantity of respondents was in an adequate extent(around 12 reactions for the interviews). Notwithstanding, mostrespondents seem, by all accounts, to be from European countries, andconsequently, the results may not be representative to an overallview on cloud computing technology. Finally, not all parts of acloud-based solution could be measured qualitatively.
Areas of further research
Thefindings that results from this exploratory study into SMEs adoptionand implementation of cloud computing have numerous implications fordifferent academics who are occupied with exploration here. Further,a number of practical suggestions can likewise be made. Examinationof the profundity of planning SMEs embraced preceding relocating tothe Cloud environment recommends there is a considerable hole betweenwhat is distributed in the writing with respect to steps to helpcloud computing appropriation and what is implemented in practice bythe SME group (Armbrust et al., 2010).
Lateron, this study can be reached out by assess more elements that couldimpact the selection choice of cloud computing, and assess theacknowledgement and preparation of Jordanian E-commerce little andmedium undertakings (SME`s) to Cloud computing technology (Aljabre,2012).
Thereare numerous grey legal areas in regards to the security andownership of individual data in the cloud. The public policydevelopment on cloud security will keep on evolving and ought to turninto an essential issue to research further (Kazi, 2007).
What was learnt? How this benefits the reader?
Thereis more specificity in the challenges that face implementation ofcloud computing in SMEs and therefore more research needs to be donein the area. The reader should seek to find out more specific issuesrelated challenges facing cloud computing implementation (Aljabre,2012). This will ultimately give the reader more insight on the areaunder study.
Final review of Finding
Thefollowing are the key findings of this research study thatinvestigates different aspects of cloud computing amongst SMEs.
• Securityand privacy issues are identified as the main areas of concerns forcloud adoption and implementation by 83.33% of the users (10 out of12 users).
• Costreduction is the main reason for setting up cloud-based system formost SMEs.
• Thequality of internet accessibility affects largely the use ofcloud-based services in the SMEs.
• 50% of SMEs (6 out of 12 users) will consider PaaS, if they want todeploy a cloud-based solution for their organization.
• 50%of the CEOs see public as the solution most suitable for SMEs.
• Only8.33% of SMEs (1 out of 12 SMEs) in the study had made no concreteplans to have certain cloud based technology in their areas of workwithin the next 5 years.
Thischapter discusses the findings presented in Chapter three. Thefindings from the current study shall be compared and contrasted withvarious previous research findings to highlight similarities anddifferences in findings. The chapter shall be organized into severalsections for ease of organization.
5.1Relationship between Industry and Cloud Computing Adoption
Theadoption of cloud computing is mainly seen to occur in the IT andTelecommunication industry with the Trading industry showing leastconcern to adopt cloud computing in its processing. IT andTelecommunication industries have more use of the services as theyare important in enhancing data storage and usage of online services.The market scope is much oriented to the use of data and innovationas well as competition defines the market. The IT andTelecommunication sectors are part of service industries which areknown for information processing hence the fast adoption of cloudcomputing.
5.2Reasons behind Engagement in Cloud Computing
Oneof the key advantage of cloud computing is that is saves onexpenditure on capital. Cloud computing empowers associations to movefrom capital expenditure (CAPEX) to operational expenditure (OPEX),subsequently providing for them the adaptability to deal with theiroperational cost. By moving to the cloud, SMEs can diminishorganization costs, for example, ICT services upkeep and redesignsand also server organization costs. SMEs can save on work costs bynot utilizing and paying IT proficient as there will be norequirement for such abilities in light of the fact that the cloudprovider does organization forms for the client. By moving ICTframework and programming applications to the cloud, SMEs can useassets in a more productive and effective way, accordingly providingfor them business center.
Versatilityprovides subscribing cloud clients with the capacity to pay for cloudassets when required and the capacity to scale up or scale downassets according to request. This is made conceivable by having anexpansive pool of virtualized servers in the cloud. Also, Investmentin ICTs has the capability of enhancing associations point ofinterest and cloud computing can enhance SMEs` preference. Moreover,One of the key preference of cloud computing is availability. Cloudcomputing comprise of cloud services which are available through theInternet. Such models give SMEs versatility to get to cloud servicesfrom any area. Meeting findings uncovered that most SMEs see cloudcomputing as a cost-effective arrangement that can be effectivelyimplemented and got to anyplace (Avison et al., 2004).
Thuscloud computing is seen to be cost effective as there is no extracosts, for example, programming licenses, equipment, ICT foundationbacking and upkeep. Master survey findings recognized cost saving,anyplace get to and speedy and simple implementation as a percentageof the profits of cloud computing: "The basic advantages arecost savings, deftness and anyplace get to. Cost savings is apparentin light of the fact that when an organization moves to the cloud, itsaves on power, server cost, permitting cost and compensations to paystaff that backing in-house ICT services". These findings are insimultaneousness with the poll and meeting findings. Besides thesefindings show that there is a considerable measure that SMEs canadvantage by moving their ICT framework to the cloud.
5.3Concerns to Adopting Cloud Computing
Participantswere asked to recognize their apparent difficulties they face fromcloud computing. It was uncovered that participants are minimumconcerned with issues of security, the cost of cloud, similarity,usability, reliability and comparative advantage.
Howeverthe findings demonstrate that participants are more stressed over theexecution and accessibility of cloud services as they are gotten toover the web. Issues of transfer speed cost, quality and integrationrate can be enormous boundaries to cloud appropriation. Data transfercapacity cost and quality are a percentage of the key boundaries tocloud computing appropriation in SMEs (Gartner, 2011).
Cloudservices accessibility was seen as a test and cloud serviceinaccessibility can be because of what is called "cloud-providerblackouts". Kim et al. expresses that cloud-provider blackoutscan be temporary or permanent. A provisional blackout is when cloudservices are occupied for a brief time of time. Notwithstanding, aperpetual blackout happens when a cloud provider is out of business.Provider blackouts can contrarily influence customers` businessoperations. One of the key boundaries to cloud computingappropriation is industry regulation and agreeability. There are afew countries that deny organizations to store data on data focusesthat are outside the country. Also Taylor, Young and Macaulay (2010)contend that a few laws and regulation in a few countries weredrafted without considering cloud computing.
Inthis way question findings are in simultaneousness with master auditfindings whereby it was uncovered that cost and security, andsecurity are the key difficulties of cloud computing. As indicated bya study done by IDC, the majority of SMEs see esteem in cloudcomputing however issues of transfer speed quality and cost andprotection are one of the key boundaries for appropriation. Reed, inthe same way as IDC, contends that the cost of giving cloud computingto SMEs is one of the hindrances that help the moderate reception ofcloud (Aljabre, 2012).
5.4Decision Making in IT Securities and Innovations in Organizations
Interms of TOE framework, the role of CEO in making decisions in thecompany is well supported. This is mainly because the top managementis usually an important actor in the decision making process in anybusiness. According to TOE framework, the top management is usuallyknown to make the changes in innovation in the companies and the topmanagement includes CEO, IT Manager, COO and Operational Manager(Tornatzkyand Fleischer, 1990). This explains why most of the individualsinvolved in decision making in the organizational structure are theCEOs and other top management individuals. Usually the support thatthese individuals give is critical for the adoption to occur(Boumediene, Kawalek, & Oswaldo, 2009).
5.5Relation of Size and Adoption
Mostof the participants were from small enterprises with staff populationof less than 50 members. However, most of these small enterprisesshowed willingness to adopt cloud computing in the next five yearswhile some had already adopted. Most of the smaller firms showconcern for adoption of cloud computing, it is expected to be infirms with larger size. However, these firms portray essence ofgreater needs. Additionally the aspects of skills and experiencescomes in hand given that most of the firms have operated for quite aconsiderable amount of year with some having operated for more than15 years. With the skills and experience in the field, it is likelythat the firms are likely to fail than small ones.
5.6Concerns in Adopting Cloud Computing
Themost usual concerns raised towards implementation of cloud technologyare concerns over the accessibility of service, security andauditability of company data and performance issues about datatransfer or loading speeds.
Interms of availability of service, most firms prefer to get providerswho assure them of trustworthy and stable services. Additionally,firms are concerned about the security of their data. They want to beassured that their data is safe hence they prefer the organizationsthat offer encryption services.
CHAPTER6: RECOMMENDATIONS AND CONCLUSIONS
Inthe future, this study can be reached out by assess more elementsthat could impact the appropriation choice of cloud computing, andassess the acknowledgement and status of Jordanian E-commerce littleand medium undertakings (SME`s) to Cloud computing technology(Aljabre, 2012).
Thereis a requirement for a more coordinated national exertion headed byGovernment and State Bodies to help SMEs who plan to participate inCloud Computing Adoption and implementation (Geczy, Izumi and Hasida,2012). This requires the advancement of basic SME particularmodels/structures which accentuate and expand awareness of thepreparatory steps SMEs ought to embrace to guarantee proficientmovement to the cloud environment (Avison etal.,2004). Additionally, within the academic group, a more noteworthyfocus needs to be set on creating a literature base which isparticular to cloud computing difficulties in the context of SME.
Cloudcomputing services can help and give an impressive chance to Smalland medium Enterprises as a rule and E-commerce Small and mediumenterprises in particular, in instances where there is absence ofIT-assets and framework. Then again, cloud computing can give anadvantage to the SME`s and in the same time there are a few issuesand difficulties that ought to be cautious when applying thistechnology.
Furthermore,cloud computing services are gotten to over the Internet furnishingSMEs with the adaptability of getting to cloud computing servicesanyplace and at whatever time. Nonetheless, there were difficultiesfound with cloud computing, for example, data transmission cost andquality and data security. Participants were worried about the costand nature of data transmission as they see it to be costly.Transmission capacity quality is paramount as cloud computingservices are gotten to over the Internet. Cloud computing servicesoblige quality and dependable web integration.
Theissue of data security on the cloud is a worry. SMEs that took partin the study dread for the security of touchy data to securitydangers, for example, data misfortune and security. This can be anobstruction for cloud computing selection unless the cloud providerguarantees SMEs that their data will be protected and secure.
Inany case, the Smes appeared to be hopeful about cloud computing asthey are more inclined to first embrace, Paas, then Saas (emailservices) emulated by Iaas. The inclination of Paas over Iaas andSaas can be affected by a percentage of the participants` involvementwith Paas applications, for example, Google mail, cloud excessapplication and email stockpiling application, for example, MIMECast.
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