Cloud computing adoption readiness by small enterprises in Cape Town, South Africa

Abstract

In contemplation of business sustainability and competitive participation in the market, there is a compelling need for small, medium and micro-sized enterprises (SMMEs) to embrace technology innovations. However, the adoption rate and use of Information and Communications Technology (ICT) specifically by Small Enterprises (SEs) is still very low. The slow adoption rate is mainly attributed to the non-availability of sufficient resources in SEs. Cloud Computing (CC) technology promises to provide the needed computing capacities to SEs at affordable cost. SEs do not have a clear understanding of what CC entails and are therefore not able to determine their readiness level for CC adoption. This research aimed to explore the extent of the CC adoption readiness of SEs in the city of Cape Town as well as SEs’ level of understanding of CC technology. Two primary research questions with two sub-questions each were posed. The primary research questions were formulated as follows: 1) To what extent are SEs prepared for cloud computing technology adoption? 2) How do SEs determine their readiness for the adoption of cloud computing? The research was qualitatively designed, with a subjectivist and interpretivist approach. Semi-structured interviews by means of an interview guide were conducted with SEs in Cape Town and surroundings. The SEs were purposively selected using the non-random sampling technique. The research was conducted according to the code of ethics as prescribed by the University. Respondents had to consent to participating in the research, and the researcher continuously provided assurance of confidentiality to the respondents. The research findings offer direction on the understanding, awareness, and readiness of SEs in general in Cape Town. Some of the main findings of the research revealed that SEs do not have a clear understanding of CC technology, consequently, it could not clearly be determined whether SEs are ready for the adoption. This has led to drawing conclusions that point to the low level of CC adoption readiness of SEs.