Determinants of Cloud Computing Adoption Amongst SMEs in the UK Technology Sector

Abstract

Cloud computing has become a transformative technological model for businesses, offering flexibility, scalability, and cost-effectiveness. However, the embracing of cloud solutions amongst small and medium-sized enterprises (SMEs), particularly in the UK technology sector, has been varied. This research aims to identify and examine the significant determinants influencing cloud computing adoption among SMEs in this dynamic industry. Grounded in the Technology-Organization-Environment (TOE) framework, the study employed a quantitative methodology, surveying 102 SMEs across software development, IT services, and emerging technologies. The findings revealed that technological factors (IT infrastructure compatibility, technical skills), organizational factors (top management support, financial resources, employee readiness), and environmental factors (competitive pressures, industry practices) significantly influenced cloud adoption decisions. Notably, organizational factors emerged as the strongest predictor, followed by technological factors, while environmental factors had a weaker but significant impact. The regression model states that 59% of the variance in cloud adoption is explained. The study provided insights into the evolving priorities and shifts in factor importance between early and later cloud adopters. Recommendations are offered for SMEs, cloud providers, policymakers, and industry bodies to facilitate successful cloud migration journeys for technology SMEs in the UK. This research contributes to the understanding of the factors driving the adoption of cloud computing.