The Key Factors Influencing Indian Firms

Published Date: 02 Nov 2017

Select the appropriate theories and approaches to the proposed dissertation.

If you need to develop new theory, justify why the existing theories are not applicable to your proposal.

For using existing theories, you are required to justify that the theories are used within a new context – see 1 above: Define gap in literature.

Prepare a theoretical framework.

Identify the research question(s).

Determine research problems/sub-questions.

The Key factors influencing Indian firms (SME) adoption of Cloud based services

The main purpose of the research is to develop a theoretical framework for a dissertation on key factors influencing Indian SME firms’ adoption of Cloud based Computing services. It will identify and confirm the key factors which are determinants of adoption of Cloud Computing in SME Indian organizations. Although they are many theories on Technology adoption, only theories which are relevant to adoption of Cloud based service, such as virtualization, adoption of innovation, environmental and organizational factors for Indian firm would be discussed in this research.

The Theoretical basis for this study will be Diffusion of innovation (DOI) theory, Process virtualization theory (PVT) and Technology Organization and Environment (TOE). The selected theories confirmed that there is a need to explore the role and importance of analyzing key factors (facilitating and inhibiting factors) influencing small to Medium Enterprise (SME) adoption of Cloud based computer services in India .

Furthermore the theories present a solid theoretical framework on which to base the proposed studies. Following on from this research, a roadmap can be developed that could be used to guide Indian SME organizations through the process of successfully adopting or migrating to Cloud Computing. Based mostly on this research a series of propositions would be developed. At the end result of this study can provide SME with the knowledge and understanding regarding the development and implementation of Cloud Computing initiatives in their organizations.

Keywords: Cloud Computing, Small to Medium Enterprise (SME), adoption, Diffusion of innovation (DOI), Process virtualization theory (PVT) ,Technology Organization and Environment (TOE)

Introduction:

The main aim of this Research paper is to develop theoretical framework by identifying determinant and inhibiting factors that influence the adoption of Cloud Computing services in Indian based SME. Following on from this research, a roadmap can be developed that could be used to guide Indian SME organizations through the process of successfully adopting or migrating to Cloud Computing services. The roadmap could serve as a guide to the different strategic problems that can arise when evaluating, designing and migration to Cloud Computing. The road map could also be used by technical managers as well as management in general by combining strategic factors from a variety of disciplines (e.g., security, legal, organisational management and trust).

In light of the growing interest in an emergence of Cloud Computing as a necessary strategic weapon for business sustainability, the importance of understanding the adoption of Cloud Computing with context of technological, organizational and, environmental factors need to be studied. The objective of this research is to illustrate how business transformation via virtualization may facilitate SME to adopt Cloud Computing initiatives.

This report is organized as follows, an overview of Cloud Computing is provided in Literature review. The three frameworks, Diffusion of innovation (DOI) theory and Technology Organization and Environment (TOE), Process virtualization (PVT) theory are summarized in as the theoretical foundation of our study. Although DOI theory may be a powerful descriptive tool, but is less robust in its explanatory power, and less useful still in predicting outcomes and providing direction on how to accelerate the speed of adoption. (Zhu 2006). In our framework the Cloud adoption (that is, a SME is assessed to be ready for implementing Cloud Computing initiatives via virtualization) is made through and integrated TOE and PVT analysis, and also the stages of implementation would be guided by the DoI analysis.

This research will extend the recent findings of empirical research regarding the Cloud Computing environment, by determining the key factors used which are influencing the decision of Indian SMEs to adopt Cloud Computing services. The Key finding of this research will help in developing a roadmap for Small to Medium-sized Enterprises (SME) in their adoption of Cloud Computing Services. Finally research Question on Cloud Computing adoption by identifying determinant and inhibiting factors for Cloud Computing are described as sub question.

Research Setting:

Many businesses are considering a new Computing paradigm, known as Cloud Computing, to optimize utilization and minimize the price of their IT infrastructure. Referring to both the applications delivered as services over the Internet and infrastructure service by providing the hardware and application software systems on the Internet. The data centers that give those services, Cloud Computing leverages shared infrastructure by utilizing IT resources to cater to the Computing wants of organizations (Armbrust 2009).

Cloud Computing technology and resources are based in centralized data centers, dynamically adjusted and tuned to achieve optimum efficiency, providing an unparalleled economy of scale. The Cloud model is delivered to end users (individuals, SME and enterprises) as oriented pay-per-use services in which guarantees are offered by the providers by means of customized Service Level Agreements (SLAs) (Yang 2009)This converts Computing power into a public utility like water, electricity or gas supplies; it is a profound paradigm change in the IT industry and possibilities for society as a whole (Marta 2011)

Accordingly, Cloud Computing, its services and deploying models, offers the opportunity for small businesses to subscribe to pay-per-use top class solutions at an affordable price and fulfill their operational needs to access infrastructure, platform and software over the Internet, without having to host or maintain the services themselves (Dillon 2010). Typically, some of the Cloud applications most used by SME are website hosting, file-server, e-mail system and related features (e.g. address book, calendar, etc.). SME is realizing that Cloud Computing can have tangible benefits and are seriously considering their transition to Cloud technologies (Chien 2010)

In the case of SME, access to Cloud services is turning into an important component of their competitiveness and efficiency. Conversely, lack of access would imply that the SME sector cannot achieve its full potential. In general, Cloud Computing services give a global business platform for everyone, everywhere, for each country, for every company, for every organization. It provides every kind of business new opportunities for collaboration between business partners, by enabling access to applications, infrastructure and services that are time and distance independent(Zaidi 2013).

SME will not normally have a large ICT department or budget, thus they're not likely to own access to sophisticated IT architectures and supporting tools. Cloud Computing appears to be the solution to several of their business requirements, while at the same time avoiding standard IT maintenance prices. Cloud Computing allows them to enhance IT support for his or her industrial activities and keep pace with new technologies (Dimitrakos 2010).

In addition, Cloud Computing has brought about change in the ownership-based approach and introduced the concept of a subscription-oriented approach. Users can access, store, and share huge amounts of information in the Cloud. This is especially good for the small or medium enterprises for whom the purchasing, administering, configuring, and maintaining of their Computing infrastructure becomes quite easy. The firm can also focus on their core competencies and reap a number of benefits like on-demand Computing resources, low cost, and faster and cheaper software (Martin 2009). Cloud Computing brings a large amount of Computing power for organizations that need to process a large amount of data. For example, financial companies that maintain information for hundreds of clients.

Cloud Computing takes into account many technologies like virtualization, pay as you go, utility Computing, no capital investment, provisioning on demand, scalability, elasticity, and IT outsourcing (Rodrigues 2012). One can see a growing popularity of Cloud Computing which has led to a proposal defining its characteristics. The recent development of Cloud Computing provides a convincing opportunity for organizations to outsource their Information and Communications Technology (ICT).

Early adopters of Cloud Computing services, such as SME intuitively embrace the opportunity to rely on massively scalable IT infrastructure from providers like Amazon, Google, and Microsoft. However, there is no systematic, dedicated approach to identify the benefit from Cloud Computing that could serve as a guideline for SME to adopt Cloud based model.

In fact, there are many well-known Cloud solutions that are on the market to individual users, such as Microsoft SkyDrive (with Office Web Apps), Apple Inc.’s iCloud, and Google Inc.'s Google Docs, and some of these solutions are free. The Cloud applications can render numerous advantage to SME like lower cost in hardware and software, improved application compatibility and reliability, universal document access, and easier group collaboration and file sharing (Miller 2008). Meanwhile, the potential risks also are noticeable, such as data security and privacy concerns (Miller 2008) vendor lock-in and concerns regarding the training to use Cloud applications (Sultan 2011). All these factors from completely different theoretical perspectives predict organization acceptance of Cloud applications. Therefore, it's important to review across the different factors for Cloud adoption in order to develop a systematic view of their impacts on SME. This research is based upon three different theories to examine SME acceptance of Cloud applications.

Despite its speedy growth, Cloud Computing is expected to account for about 5 percent of total worldwide IT spending in 2015. (McAfee 2011) because of numerous obstacles to its adoption like business continuity, service availability, vendor lock-in, and data confidentiality issue (Armbrust 2009). From each of studies and following points of view, it is necessary to study what factors influence the adoption of Cloud Computing and how those factors are interrelated. To date, most research on Cloud Computing adoption has targeted on organizational users (Zhang 2010, Low, Chen et al. 2011, Sultan 2011) but little is understood concerning key factors for adoption of Cloud Computing for Indian based SME

From the financial purpose of view, (Misra 2010) built two types of business models that may be drawn from firms (Cloud users) willing to adopt Cloud Computing services. There are business models for firms with an existing IT infrastructure and business models for startup firms. An up to date survey found that this charging pattern and different factors of the Cloud create it highly appropriate for small- and medium-sized companies (Misra 2010). However, firm size was found to have a result of the perceived strategic importance of Cloud Computing in innovative technological development.

A previous study on Cloud Computing adoption consider the different technological innovations and means in which adoption of Cloud Computing can revolutionize the business model. Information technology facilities and resources might be accessed on demand, wherever and whenever it is required (Tuncay 2010). Studies have also proposed a trade-off between cost and risk that indicates which technology will result in higher profits. (Misra 2010) tried to broaden this outlook with a model that not only helps identify the suitability of a company for Cloud Computing by clearly tracing all the factors but conjointly tries to convey a sure profitability valuation of the services related to Cloud Computing. (Banerjee 2009) provides an outline of technological research studies that were performed in HP labs which adopted Cloud based environments, like utility Computing .

Different author as provided the benefit of adopting of Cloud Computing , Greengard had defined it as a catalyst for creating a paradigm shift and a wave of innovation and change in the world (Greengard 2010), Cloud Computing will facilitate organizations of all sizes to be efficient by providing a shared and on-demand infrastructure with virtualization capabilities (Vouk 2008, Durkee 2010). Thus, organizations will access services and infrastructure on an as-needed basis, and promote the flexibility to keep up with their distributed workforces.

Research Gap:

Over the past few years, there had been a steady growth of Cloud Computing services adoption in India. Although an increase in productivity and cost savings are the key drivers for Cloud Computing services adoption by organizations, there are still some factors that deter Cloud Computing services adoption by Indian SME firms. Some of the factors that affect adoption of Cloud Computing services in India, ranges from IT infrastructure change, legal and compliance issue, Security issue and power availability, as in most of the part in country power outages are quite frequent and organization needs to rely on private backup power to reduce the downtime.

The key motivation for conducting this research is to determine what are Key factors and how are these key factors influencing Indian SME firms' adoption of Cloud based Computing services

At present, there is a lack of empirical research in the area of Cloud Computing adoption in Indian SME settings. This research will also facilitate the IS research community to empirically check and validate the propositions created in our research model (Proposition would be created in Second Assignment), and to articulate a future analysis agenda for this emerging and vital field of Cloud Computing. Methodological, implications and validation approaches would be present in the second report on Cloud Computing adoption. The second report will additional refine and validate the research proposal. The concluding remarks are provided as well as the constraints of this research and plans for future analysis.

A better understanding of the small business enterprise inhabiting and facilitating factors to adopt Cloud Computing will help them to guide adoption of this emerging technology for speedy adoption translating into increased entrepreneurial startups and stimulating small business growth.

Theoretical framework

In this research we theorize that the innovation, virtualization procedure alongside technologies, environment and organization issues are the main driver in adopting Cloud based model by SME. Therefore, this report will endeavor to holistically think and examine virtualization inside the context of organizational, technology based adoption initiatives. The integrated framework this report will discuss is hypothesized based employing three well instituted IS theories: (a) Process virtualization theory (b) Diffusion of innovation theory and (3) Technology Organization and Environment. A brief description of these three theories is given below.

The theoretical implications of this research will try to justify the value of Cloud based adoption. Some research such as Carr and Thatcher research on ''IT value paradox'' (Carr 2003, Thatcher 2007) had question the value of Information technology to modern organization. studies had theorized that IT would soon be like water, electricity or other utility and therefore its value will diminish. Cloud based model evolution will facilitate justify that extensive use of Cloud Computing initiatives like virtualization would be in a position to provide important performance impacts on both IT and business. In similarity with the study of (Zhu 2006) this research can ensure that systematic utilization of Cloud Computing approaches via both business and technological virtualization processes might be an first stage that organizations want to undergo before they will migrate to the next stage where Cloud Computing, would be widely adopted and integrated with different IT and business approaches.

In essence, this research will make contributions to the literature on Cloud Computing adoption. It will suggests that the degree to those organizations considering to initiate Cloud Computing approaches are driven by concept derived from technological, organizational, and environmental contexts. This research highlights the importance of incorporating method virtualization into our understanding of Cloud Computing in business and technological processes. Going beyond the mist of Cloud Computing conceptualization, we assume that virtualization is the driving force for organizations to integrate

4.1 Process Virtualization theory

For this research we will use the Process virtualization theory (PVT) developed by (Rogers 2005) to furnish a hypothetical foundation for investigating the first part of the research question: analyzing the benefits of adoption of Cloud Computing by IT based SME in India This theory will discuss about the benefit of Cloud Computing of IT based SME; Process-virtualization-theory is intended to clarify and forecast whether a procedure is willing or resistant to being conducted virtually. Procedure virtualization occurs after a physically-based procedure is transformed into a virtual environment. This characterizes a common trend in recent IS development such as the migration of physical social contact to online communities. There is also a migration of shopping on the Internet, and the migration of education to distance learning environments. The variable, procedure virtualizability, helps enterprise to design a procedure without physical contact from people to people or people to objects.

Process Virtualization defines virtualization of the IT infrastructure of a company and of its business processes. It is conceptualized as the automation within and across the organizational boundaries to leverage its people, capital, technology, and data resources achieve vital improvements in productivity, value, and competitiveness (Applegate 2003). The utilization of powerful Cloud Computing platforms, combined with hardware, software and high capacity networks, produces the platform for virtual businesses.

In adoption of Cloud Computing services, one of the factor need to be considered as per as vitualisation theory is share identities, and security issue. Some research has shown that the vendor relationship in virtual environments can improve if member have shared identities (Hind 2005) . Identification and control issue will deal with security issue in Cloud Computing environment. User and system need to authenticate themselves to the Cloud service provider (Pelin 2010), research need to explore the challenges that would be faced by SME. The research will explore in the context of process virtualisation theory.

IT-enabled virtual interaction will transmit communication cues which facilitate establish relationship. For example, virtual web site like Linkedin and FaceBook will help match participants with similar or complementary interests and help them build professional relationships with others. According to PVT, IT-based mostly virtual processes such as e-commerce and online distance learning will facilitate the virtualization of processes with high relationship necessities. In essence, IT-based mostly virtualization will enable method constituents to probably reach other participants who share similar interests in a very professional context.

Thus, organizations can access services and infrastructure on an as-required basis, and promote the flexibility to take care of distributed workforces. Virtualization is an energy-economical consolidation technology found in Cloud Computing This study is targeted on developing an integrative theoretical framework that: (1) is grounded on IS research theories and findings, and (2) will be used to assess a firm's readiness to undertake Cloud Computing initiatives through the Virtualization method.

From an SME perspective, virtualization increases IT's agility as a result it will facilitate organizations to take shorter time to promote their product into the market and increase revenue growth (Willoughby 2010). According to Applegate SME has to find an optimal resolution juggling four key variables/constraints: (a) achieving highest levels of reliability, (b) at the lowest cost, (c) among a compliance framework, and (d) with limited resource. In recent years the concept of virtualization has taken part in a major role in designing and implementing a dynamic business environment. The capabilities and availability of the virtualization technologies and the current economic climate are the most important drivers toward Cloud Computing adoption.

4.2 Diffusion of innovation theory

The term diffusion is borrowed from natural science and is that the phenomena where gases or liquid particles wander randomly from one concentration gradient to another to create an evened out equilibrium (Askeland 2010). The concept of diffusion of innovations is concerning how, why, and when innovations make its way through communication channels in society and become accepted. Diffusion as a social concept was coined and defined by Everett Rogers in 1968. The principles were not new, however it was Rogers who gave the concept some real academic weight in his book Diffusion of innovations where he synthesized the work of 580 diffusion studies. Rogers’s book revolves around four key components that greatly influence the spread of innovations in society. These elements are the innovation itself, communication channels, time and social systems (Rogers 2005).

In order to handle a potential change among the technology, it is of importance to create awareness of how and when the innovation is spread through the society. To what degree a technology is understood and may be crucial for its future market potential. For Cloud Computing adoption of SME it is important to understand the technology adoption facilitation and inhabitations factors. (Rogers 2005) defined technology adoption as ‘‘the process through that which an organization defines adoption or assimilation of technology through an innovation. To develop an attitude for an organization for the innovation, decision to adopt or reject, to implementation of the new idea.''

This research had selected DoI theory because the theoretical foundation for most technology adoption analysis such as (Cooper 1990, Tornatzky 1990) among others, relies on finding out the process of technology diffusion and also the factors influencing technology adoption choices. Although in this report the factors influencing the determination of the readiness of implementing Cloud Computing initiatives through the virtualization process are modeled and analyzed through the integration of TOE and PVT theories, the DoI theory allows to take a process changes that moves us from the decision to adopt Cloud Computing service via virtualization to the three stages of its implementation: (a) initialization, (b) integration, and (c) maturation.

Diffusion of innovation (DoI) theory (Pelin 2010) provide explanations of how new changes are adopted, and how adoption decisions are altered by perceptions of the knowledge itself as well as the characteristics of the adopting association and its environment. According to the DoI theory, a technical change passes across five stages, such as knowledge, persuasion, decision, implementation, and confirmation.

This report selected DoI theory as a foundation for the research question: Analysing key factor (inhibitating and faciliting) factors in adopting Cloud based Computing services by Indian firms, for this research we will be concentrating on technical change such as decision, implementation and confirmation. For Cloud Computing adoption for SME it is important to understand the adoption and

Technology Organization Environment (TOE)

Although various factors have an effect on Cloud Computing adoption among previous researchers' findings (Newell 2001, ALi Khajeh-Hosseini 2011, Sultan 2011, Venters and Whitley 2012) of all these factors can be classified into technological, organisational, or environmental contexts. Thus, it's reasonable to use the technology organization environment (TOE) framework to explore the Cloud Computing adoption issue.

For Cloud Computing adopting, the technology organization Environment (TOE) theory developed by (Depietro 1990) is used. According to this theory, the organizational adoption and implementation of technological innovations is influenced by three parts. First the technological context refers to characteristics of the technologies which are obtainable for possible adoption by the organization, and the current state of technology in the organization. This current state of technology will be expressed in both material (e.g., equipment owned by the organization) and immaterial (e.g., strategies currently in use). Second the organizational context consists of the organizational structure, the presence of innovation enabling processes such as informal communication and strategic planning of top management. Thirdly the environmental context combines elements like market environment and competition, the external support offered for adopting new technologies and government rules. These three components are posited to interact with each other and they influence technology adoption in organizations (Depietro 1990).

This research shares certain theoretical backgrounds that belong to the domain of Strategic Information System (IS) analysis and development. According to the strategic IS literature, IT-dependent strategic initiatives comprise identifiable competitive moves that rely on the utilization of IT to be enacted, and are designed to steer to sustained improvements in an exceedingly firm's competitive position (Piccoli 2005). Examples of such initiatives include ERP-enabled business integration, client relationship management, and e-business among others. In this research Cloud based strategic initiative is rooted in a very perspective of improving economic conditions of SME (Brandenburger 1996). The implementation of Cloud Computing initiatives as IT-dependent strategic initiative to highlight the fact that it may not be feasibly executed without the enabling the infrastructure technology foundation.

Although the TOE theory has primarily been used to review the adoption of Cloud Computing, it will not provide concrete models describing the factors that influence the organizational adoption, rather it will provide a taxonomy for classifying adoption factors in their respective context. The TOE theory has been used by a large variety of studies to analyze the adoption of, for example, Electronic Knowledge Interchange (EDI) (Kuan 2001)open systems (Chau 1997), and e-business (Zhu 2005)The main contribution of TOE is that it encourages the researcher to inquire about the broader context into condition in which innovation takes place.

We tend to adopt the process-Virtualization-theory (PVT) developed by (Overby 2008) to produce the theoretical foundation for investigating the research question: What factors have an effect on the virtualizability of the Cloud Computing implementation method in organizations?

The flexibility for small business to compete in global markets through new innovation with little capital through virtualization, can improve their chance to be successful. The ability for small businesses to be innovative has been a serious consideration in its adoption and economic viability (Schwienbacher 2007). New Entrepreneurial typically has been restricted to bootstrap financing techniques (starting a company with little capital) a small fraction of small businesses were only able to secure adequate equity financing (Paul 2007, Barringer 2010). Access to limited capital has been a major factor influencing small business investment and innovation in their obstacle for growth. Technological innovations like the Cloud Computing will mitigated capital barriers that previously restricted small business to compete globally.

General Research Question:

There is growing recognition that Cloud Computing adoption is essential but it is more complex than originally anticipated. The research question will attempt to analyze some of the aspect of SME which can either significantly enable or impair its ability to reap the reward of Cloud adoption. The organization has started to recognize that Cloud adoption should address security issues such as application and data safety and reliability and issues related to intellectual property. Cloud adapter also needs to prepare for the inevitable complexity that will arise from legal and regulatory environment.

Notable benefits of Cloud Computing models are relatively easy deployed, price savings and payments. Cloud Computing services are designed for quick and easy deployment. By adopting Cloud based architectures, organizations can decrease prices connected to employees, infrastructure, maintenance and management. On-demand services are aligned with utility-style. The future of Computing lies in Cloud Computing, whose major goal is reducing the cost of IT services whereas increasing processing throughput, reliability, availability, and flexibility and decreasing processing time (Hayes, 2008). Owing to the shortage of exploratory studies that specify the adoption of Cloud Computing in Indian SME context, this research is to perceive the method of adoption of the technology and to identify facilitating and inhibiting factors affecting the Cloud Computing adoption decision with the Indian SME firms.

While focusing on the research question it would be reviewed iteratively and the question would be further divided into two parts for Research purposes.

What are the key factors facilitating and inhibiting Indian SME firms' decision to adopt Cloud based Computing services?

RQ1 Facilitating factors and RQ2 Inhibiting factors

RQ1 - What are Facilitating factors for SME firms in India adopting Cloud Computing services?

Regarding RQ1, there is a rapid commercialization of developments in the field of Cloud Computing in which Computing is delivered in the form of a utility on a pay-as-you-go basis. Many firms invested a lot of time and a huge amount of capital towards the implementation and maintenance of computational resources (Watson 2011).

From a client's purpose of view (Nair 2010), the Cloud Computing service delivery model brings capital expenditure reduction, increased IT agility, faster come on investment, removal of barriers to entry and a more strong and resilient infrastructure, leading to better business continuity.

Cloud has been seen as good for the on demand service, and is analyzed as a potential market opportunity. As per IDC (International Data Corporation) the world over IT Cloud services will increase from $16 billion in 2008 to about $42 billion in 2012. Thus, the Cloud has been seen as good for on-demand services and potential market opportunities. A 2012 IDC report (Draft 1986, Kar 2013) shows that Worldwide revenue from IT Cloud services exceeded $21.5 billion in 2010 and will grasp $95 billion by 2015, representing a compound annual development rate (CADR) of 27.6%.

In the particular case of SME, access to Cloud services is becoming an important component for their competitiveness and potency. Conversely, lack of access would imply that the SME sector will not achieve its full potential. In general, Cloud Computing services give an open business platform for everybody, everywhere, for each country, for every company, for every organization and for each business it provide opportunities for collaboration between business partners, by enabling access to information that are time and distance independent.

SME generally do not have a massive ICT department or budget, so they do not have access to sophisticated IT architectures and supporting tools. Cloud Computing seems to be the answer to several of their business necessities, whereas at the same time it avoids IT maintenance cost. Cloud Computing allows them to enhance IT support for their business activities and keep pace with new technologies (Dimitrakos 2010).

RQ2 - What are Inhibiting factors for SME firms in India adopting Cloud Computing services?

While Cloud Computing has been discussed as a new technology development which will provide many blessings, both strategic and operational, to its adopters, the Cloud Computing adoption rate isn't growing as fast as expected (Banerjee 2009, Buyya 2011).

Understanding Cloud Computing risks and advantages is crucial. Some of the inhibiting factors for adoption of Cloud Computing are security, loss of control, availability and legislative aspects. (Oke 2007) Security risks refer to the exposure to an organization’s data and services by outside entities. Loss of management is the lack to possess exclusive control of information and services outside the organization. Availability underlines the readiness of services and information. It is essentially affected by quality of affiliation between the access purpose and therefore the service location. Internet connectivity is presently significantly less reliable than organizational intranets. Legislative aspects relate to liabilities and adequate legal protection of users.

Business leaders around the world are discovering that Cloud Computing is more expensive than imagined at the time they decided to adopt the technology, according to KPMG survey report. The KPMG survey, "The Cloud takes shape", polled more than 650 IT and business leaders across 16 major global markets and found that almost 33% of executives say the cost of implementation of Cloud Computing have been greater than expected and a similar number noted significant implementation challenges (Hill 2013, Kar 2013).

The main reason for companies to move to Cloud were, it facilitates the transformation of their existing business process, and by moving their services to the Cloud would make it easier to enter two new markets. But according to KPMP Survey most of the responded said that the cost associated with moving data internally to Cloud was higher than they expected. More changes in their business models than they realized while redesigning of IT Infrastructure to the smoother and secure Cloud.

"What is the propensity of small businesses to embrace the Cloud Computing new business-Computing paradigm?"

RQ6: To what extent does results demonstrable, a perceived attribute of innovation, relate to small business leaders' intent to use Cloud-Computing services?

Research question ( working on)

RQ3: To what extent does complexity, a perceived attribute of adoption, relate to small to medium enterprise intent to use Cloud-Computing services?

RQ4: To what extent does relative advantage, a perceived attribute of adoption, relate to small business leaders' intent to use Cloud-Computing services?

Guiding Questions

Theoretical Framework

RQ1 What are Inhibiting factors for SME firms in India adopting Cloud Computing services?

RQ2 What are Facilitating factors for SME firms in India adopting Cloud Computing services?