Improving the adoption of cloud computing by small & medium scale enterprise (SMEs) in Nigeria

Abstract

In a traditional business environment, companies set up their organisation’s IT data infrastructure, install their applications and carry out the maintenance and management of their infrastructures. Whereas Cloud computing removes the need for companies to set up own data centers and run enterprise applications. Cloud computing technology provides businesses with the advantage of on-demand access, agility, scalability, flexibility and reduced cost of computing. An appreciable increase is being observed in the acceptance and migration to this new IT model in developing economies. In Nigeria, it has been observed that there is a somewhat unimpressive rate of adoption of Cloud computing by the microfinance operators. This research investigates the reason for the slow adoption of Cloud computing by SMEs in Nigeria with special consideration to the Microfinance subsector and to develop a model for improving the adoption of cloud computing by microfinance organisations. The research was conducted using a qualitative research design method. Interview was the main data collection instrument and data collected was analysed using thematic content analysis method. The analysis of the study revealed that SMEs in Nigeria, with particular reference to microfinance subsector in Akwa Ibom State are yet fully to embrace cloud technology. It was discovered that most of the SMEs studied, has some level of reservation about cloud computing arising from not having appropriate education and enlightenment about the cloud economic offerings and potentials. From the outcome of the research, the researcher identified that most people’s concerns are as a result of lack of knowledge about cloud computing and so the researcher concluded that appropriate enlightenment by industry stakeholders, cloud service providers, cloud enthusiasts and even the government on the risks and overwhelming economic incentives of cloud computing as well as the provision of a monitored free trial services will encourage the adoption of cloud computing by SMEs.