Barriers to adoption of cloud computing faced by SMEs across Saudi Arabia: A quantitative study

Abstract

This research investigates the barriers to cloud computing adoption among small and medium enterprises (SMEs) in Saudi Arabia, a critical focus given the country's Vision 2030 objectives to enhance contribution of SMEs to GDP. The rationale originates from the low cloud adoption rate among Saudi SMEs, despite the significant benefits cloud technology offers in improving operational efficiency and competitiveness. The study aims to identify the key barriers to cloud adoption, assess how demographic factors such as industry type, gender, and education level influence these barriers, and develop targeted recommendations to increase adoption rates. The literature review highlighted several potential barriers, including knowledge gaps, lack of management support, information security concerns, insufficient IT capabilities, and provider lock-in risks. Hypotheses were developed to test these barriers using quantitative methods. A survey was conducted among 84 Saudi SME owners and managers, and the data were analysed using descriptive statistics, correlation, regression, and independent sample t-tests. The findings reveal that information security concerns and lack of skilled IT staff are the most significant barriers to cloud adoption. Additionally, manufacturing SMEs and less educated owners are less likely to adopt cloud technologies. Gender, however, does not significantly impact adoption decisions. The study concludes that addressing these key barriers, particularly through enhanced cybersecurity measures and targeted IT training, is essential for increasing cloud adoption among Saudi SMEs. Recommendations include tailored security solutions, skill development programs, and sector-specific support, particularly for the manufacturing industry.