Factors influencing the business decision of small and medium enterprises in adapting to Cloud technology

Cloud computing is playing an important role in the present. Cloud technology has numerous advantages. However the organizations adopting cloud has to keep aware of following limitations. Due to the present country situation it is highly convenient and cost effective to use the various cloud technologies for day to day business processors of any SME organization. To understand the importance of aloud adoption and the factors determined in such a process could have a heavy impact on a SME organization future technological advancements and profitability. Especially a developing country like Sri Lanka is still in the early stage of cloud computing usage and transformation. By understanding the key factors influencing the business decision of small and medium enterprises in adapting to Cloud technology could be helpful for any organization to move to the next level and focus on increasing the revenue by using the cloud technology advantages in day to day operations. In this study we will focus on 5 main factors which are crucial for migrating into a cloud environment such as Cost effectiveness, Cloud security, Internet speed , Vendor support and Technical knowledge. The intention of this research is studying a causal relationship and following positivism, and we will use the deductive approach for this research. The population consists of Small and Medium Enterprises (SMEs) who are operating in Colombo, Sri Lanka. 384 samples gathered using questionnaire as the exclusive data gathering instrument. Data was analyzed using SPSS 26.0 and descriptive, correlation and regression analysis were performed to analyze data. As per results researcher concluded that 5 main factors which are Cost effectiveness, Cloud security, Internet speed , Vendor support and Technical knowledge are crucial for migrating into a cloud environment. The conclusion is drowned to address research objectives along with recommendations.