Research Report: Cloud Computing Adoption in Australian SMEs

This research report assesses the extent of cloud computing innovation adoption among small and medium enterprises (SMEs) in Australia. It explores the benefits and challenges of cloud computing implementation within SMEs' operations. The study investigates the impact of cloud computing innovation on Australian SMEs, considering various factors that drive success and the roles cloud computing plays. The report includes a literature review covering cloud computing concepts, models, and its application in SMEs. The methodology section details the sample size, questionnaire design, data collection, and analysis methods. Key findings, a conclusion, and references are provided, offering insights for SMEs considering cloud adoption. The report also addresses the current market competition and technological advancements influencing SMEs' decisions to embrace cloud computing to enhance their business operations. The research provides recommendations to mitigate risks and challenges associated with cloud computing implementation in Australian SMEs.

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 1
ASSESSMENT OF THE EXTENT OF CLOUD COMPUTING INNOVATION ADOPTION
AMONG SMALL AND MEDIUM ENTERPRISES IN AUSTRALIA
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Table of Contents

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 2
Justification of Survey.................................................................................................................5
Research Aim...............................................................................................................................5
Research questions.......................................................................................................................6
Literature review..............................................................................................................................7
Cloud computing..........................................................................................................................7
Concept of Cloud Computing......................................................................................................8
Models of Cloud Computing......................................................................................................10
Cloud computing and SMEs in Australia..................................................................................13
Cloud computing innovation in SMEs.......................................................................................15
Benefits of implementing cloud computing innovation within operations of SMEs in Australia
....................................................................................................................................................18
Challenges of adopting cloud computing innovation for SMEs within Australia.....................23
Gap in Literature........................................................................................................................25
Research methodology...................................................................................................................26
Sample size and sampling approach..........................................................................................26
Questionnaire design..................................................................................................................27
Data collection...........................................................................................................................27
Data analysis and interpretation.................................................................................................28
Summary of findings.....................................................................................................................29

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 3
Conclusion.....................................................................................................................................29
List of References..........................................................................................................................31
Introduction

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 4
In the present digital era along with globalization, several small alongside medium
enterprise business (SMEs) are adopting the application of cloud computing for their different
actions. Application of cloud computing remains to be the growing data center technology that
operates in line with increasing traffic on the internet in the period of an Internet of Things (IoT)
(Safari, Safari, Hasanzadeh, and Ghatari 2015). Execution of cloud computing innovation within
SMEs has allowed business operators to have access to sophisticated services of computing
through the internet on a fee-service basis. Besides, this study is necessary as it aim at explaining
how cloud computing innovation has enabled SMEs to have the opportunities to become as
technologically advanced as their larger counterparts, without significant outlays in finance
(Kreslins, Novik, and Vasiljeva 2018). Nevertheless, there are still several SMEs that are unsure
of the benefits along with challenges of using the innovated cloud computing into their
operations especially in Australia. Therefore, this survey will be completed to examining extent
of innovation of cloud computing among SMEs within Australia.
Competition in the market has been increasing between variousorganizations in recent
world. There has been huge enhancement in the technological background of various companies.
Various big companiesare using advance technologies to capture market. However, among them
small and medium enterprises are lacking behind in the race. SMEs are looking for increase their
business operations in the market. They have been looking for multitasking technology at low
cost. In this scenario, Cloud Computing has been the best opportunity for SMEs in the market.
Cloud computing has been helping these SMEs in various ways (Ross and Blumenstein 2015).
This research discusses about the impact of cloudcomputing in SMEs. Various theirs and models
related to cloud computing have been discussedinthe research. The role of cloud computing in

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 5
the SMEs have been discussed in the research. The benefits offered by Cloud computing in
SMEs have been reflected in the research. There have been some issues faced by the
implementation of cloud computing in the SMEs have been discussed in the research. This
research provides some recommendations related to cloud computing for mitigating these risks
and challenges in the SMEs.
Justification of Survey
It is clear that utilization of cloud computing innovation can help in boosting the
competitiveness of SMEs as well as leverage economies of countries. However, in a country like
Australia, there is the emerging tendency that SMEs commence to accept the use of cloud
technology in their traditional trade operations. Conversely, they have not paid great focus to
assess different aspects that impact cloud computing innovation amongst the operations of SMEs
in the region (Twum-Darko and Sibanyoni 2014). To fill such arising disparity in operations, this
research paperwork instigated the significant aspects that impact the choice on accepting services
of cloud computing for operations of SMEs within Australia (Shee, Shah, Fairfield, and Pujawan
2018). Therefore, outcomes of this paper will help to address and verifies the importance of
difficulty together with viable pressure aspects within the execution of cloud computing amongst
SMEs within Australia.
Research Aim
The major target of this research work goes deeper in different surveys to effectively
review the extent of cloud computing innovation implementation among different SMEs within

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 6
Australia. By attaining the primary aim of this research, different managers and workers of
SMEs along with authorized personnel in Australia will be capable to understand how idea of
embracing of cloud computing within operations of SMEs can positively or negatively affect
their operations. Besides, by achieving the set objective, management of SMEs within Australia
will be able to understand some of the factors that can affect their operations when they adopt
cloud computing innovation in their operations.
Research questions
More clearly, this study intends at offering suitable answers to various research problems that
comprise of:-
i. What are the impacts of using cloud computing innovation in actions of SMEs
within Australia?
ii. What are various aspects that compel the accomplishments of SMEs under the
application of cloud computing?
iii. What are different roles of cloud computing in operations of SMEs within Australia?
All these questions in this study can assist in giving appropriate answers to the vital target of this
plan under assessment. The results obtain to such inquiries can assist in offering necessary
choices of plans that each SME in Australia can concentrate on achieving to improve their
efficiency, by adopting application of cloud computing innovation in their actions.
Literature review
Just like any state around the global community, SMEs in Australia performs a
significant purpose in the advancement of the economy of the region. SMEs in Australia

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 7
perceived as a source of earnings, opportunities for the creation of employment, social
prosperity, regional advancements, together with exportation of products. Wang (2013) stated
that SMEs in Australia form a huge portion of the private segment. Hence, it is clear that
technological modernization through cloud computing can furnish SMEs in Australia with
essential potentials to improve its financial system. Cloud computing innovation has
considerably impacted diverse phases of life as well as altered the manner of how business is
done. Amazingly, SMEs in Australia are not far from this signal of innovation as it is moving
steadily towards implementation of cloud computing innovation (Hassan 2017). Hence, cloud
computing is the expertise that has existed for an extended duration and it has high expectations
of solving different business disputes that SMEs in Australia faces in their operations.
In the Australian community, the SMEs remain to be the skeleton of the economy of the
country. For an idea that comprises of facilitation of such alterations in any organization, three
vital mechanisms need to be taken into consideration. These components comprise of processes,
individual, along with technology. Continues process in business is significant to its achievement
and it is the continuing effort to enhance the superiority of business products, actions, or services
(Budrienė and Zalieckaitė 2014). The embracing of cloud computing innovation is promoted
with different business providers in offering robust, efficient, as well as the modern system of
information needs to improve operations of trade.
Cloud computing
Cloud computing according to Thakurta and Mohapatra (2019) is the growing data center
technology in line with the increasing traffic of the Internet in the period that deals with the

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 8
Internet of Things (IoT). This kind of technology allows individuals within operations of SMEs
to store various documents on this network, and then the document can be accessed on another
computer outside the network. Even though the adoption of cloud computing, different programs
of software do not run from an individual’s computer, but instead they are stored on different
servers that are examined all through internet. Additionally, the application of cloud computing
has been recorded by Saedi and Iahad (2013) to provide the resources together with the
capabilities of IT throughout different services presented by various providers of cloud service.
Cloud computing that it used to support operations of different SMEs in Australia comprises of
different contents. Such contents include the Infrastructure as a service (IaaS), Communication
as a service (CaaS), Software as Service (SaaS), together with Platform as a service (PaaS).
Concept of Cloud Computing
Cloud Computing is one of the recent Internet-related technologies in the market.
Various organizations have been adopting tis technologies to enhance their businesses in the
market. The Cloud computing has been providing various services based on the internet to
companies. As per Assante et al. (2016), cloud computing can be termed with internet as it
provides all services online. Cloud Computing has helped in changing the business scenario in
the market. There have been various characteristics of cloud computing. Some of the
characteristics are mentioned below:
On-demand self-service:Cloud computing has been helping in providing self-service
portals to users and companies. This help in accessing various products and services over the
clouddatabaseonline using the internet.

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enterprises in Australia 9
Rapid Elasticity:The issues in IT resources have been related to elasticity and in-demand
services Cloudcomputing has been helping in providing elasticity to users (Khan and Al-Yasiri
2016). The resources have been provisioned to users for unlimited access and available in time
when needed.
Resource pooling: The cloud service providers used to merge different IT resources
including memory, storage, and network bandwidth and processing pooled computing resources
for multiple customers.
Figure 1: Basic cloud computing model
(Source: Doherty, Carcary and Conway 2015)
The above figure shows about the basic model of cloud computing that specify simplest
process of accessing application and processes with a common network and man server. These
services can be accessed by different organizations and SMEs.
Models of Cloud Computing

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enterprises in Australia 10
As per research done by Doherty, Carcary and Conway(2015), services provided by the
cloud computing can be categorized under four models based on their characteristics. The four
deployment models of cloud computing have been discussed below:
Public Cloud Computing: A public cloud computing service has been available from third
party service provider. As commented by Sohaib et al. (2019), public cloud has been utilized by
general public Cloud consumers and cloud service provider has total ownership of public cloud
with its own policy. There are various public cloud service providers including Amazon EC2,
Google AppEngine, S3 and Force.com.
Figure 2: Public cloud computing
(Source: Sohaib et al. 2019)
Private Cloud Computing: As commented by Wang et al. (2016), private cloud
computing refers to private use of cloud services for user and organizations. Private cloud has
been internal data center of organization that is not available for general public. However, the

Assessment of the extent of cloud computing innovation adoption among small and medium
enterprises in Australia 11
physical hardware can be owned by other individual or organization. The security controls and
data inside the database is controlled by the desired organization. This type of cloud provides
maximum security to data and information stored in the cloud database.
Figure 3: Private cloud computing
(Source: Wang et al. 2016)
Hybrid Cloud Computing: As suggested byHosseini et al. (2019), hybrid clouds refers to
combination of public and private clouds. Hybrid cloud has been benefitted by the capabilities of
each cloud deployment type. Some information and data stored in the hybrid cloud are private
and some are public. This can be adjusted by the company using the hybrid cloud services for
selection of public and private data respectively.

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enterprises in Australia 12
Figure 4: Hybrid Cloud computing
(Source: Hosseini et al. 2019)
Community Cloud: As commented by Vidhyalakshmi and Kumar(2016), some
organization used to make a joint Cloud infrastructure that might help both organizations
accordingly. Such type of cloud model is referred to community cloud computing. This cloud
community forms an efficient degree of performance and economic stability in the organizations.
Figure 5: Community cloud computing