Essay details:

  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

Text preview of this essay:

This page is a preview - download the full version of this essay above.


The advent of cloud computing regarding the digital revolution as a new era of virtual business have been portended by many experts. The continuous fast growth and availability of digital resources have made the cloud technology accessible to an ever-growing customer group all over the world. Nowadays, new technologies have been continuously introduced assuring the organizations of lower cost, higher work effectiveness, fast, smart and efficient services (Marston, Li, Bandyopadhyay, Zhang, & Ghalsasi, 2011).

Cloud computing is well accredited for the betterment of the business. However, all companies do not run under the same environment, and hence they cannot be compared for the purpose of using cloud computing. Importantly, the small business units, having a particular environment for skills shortages and bandwidth costs, it is imperative to rationalize the use of cloud computing. The National Institute of Standards and Technology (NIST) puts forward to cloud computing as an important model for enabling fast, approachable, and ubiquitous network access to a shared group of tailor-made computing services. Also, this can be supervised and handled with the small need of aid from service providers or managers (Mell & Grance, 2011). Many experts usually accept the NIST definition of cloud computing (Anjomshoaa & Tjoa, 2011; Chen, Paxson, & Katz, 2010; Khajeh-Hosseini, Sommerville, & Sririam, 2010). Cloud computing offers facilities which are competitive to that of traditional on-premises computing services. Notably, there is no compulsion of buying IT hardware for using Cloud computing. Instead, it does implicate for using applications over a network (Buyya, Yeo, & Venugopal, 2008; Marston, Li, Bandyopadhyay, Zhang, & Ghalsasi, 2011; Mell & Grance, 2011). If an internet connection is available, it helps in increasing access to a network via permitting applications and other data to be available online (Conway, 2011).

There is a lack of full-fledged research regarding pros and cons of cloud computing mainly in the context of small business units. The interpretation and significance of cloud computing by small business groups regarding market value are still unrevealed. The current study caters a worthful contribution in bridging the gap in the theoretical literature which uses quantitative   research methods and an adopted conceptual framework regarding IT business value. The adopted theoretical framework is used to identify the business value of cloud computing in small firms.

It is challenging for small business proprietors to select the best digital tools, considering privacy, data security, and ownership, from available wide range. One of the most accessible and convenient digital tools for these small business proprietors is cloud computing (Marston, Li, Bandyopadhyay, Zhang, & Ghalsasi, 2011). Technology upholds to instigate the direction considered by small business companies in an apparent attempt to incur competitive benefits over its direct competitors. The adoption and usage of cloud computing are the best examples which represent the desire of gaining a competitive advantage over the direct competitors to improve strength and efficiency (Marston, Li, Bandyopadhyay, Zhang, & Ghalsasi, 2011).

Over the years, cloud computing has become as a novel solution in the IT field.  Cloud computing allows companies to electronically mail, send data, folders, files, and other applications through virtual platforms with the help of servers that are connected to them.  That can be accessed at anytime and anywhere. Hence, it became inconceivable to ignore it. The only requirement for using it is an internet connection. The impact of cloud computing brings modifications not only in the area of the global performances of a company but also for the internal organization especially in the IT department (Ilie, 2015).

The cloud computing is contributing new perspectives and tools for the development of agencies that are using it. This opportunity corresponds to the modification of the common data backup methods. The term cloud computing refers to the idea that data can be stored and accessed through the internet instead of the conventional hard drive storage (Ilie, 2015).Cloud does not mean that it can be used only when and where we are storing data such as in an office or a home network. The data must be accessed online while the internet is available or at least the data synchronization, with information over the web, must be executed (Ilie, 2015). The cloud computing can be depicted as an internet based operation that helps in effective and efficient management for the workers of small business units with limited space consumption and better accessibility. Technological giants like SAP, Microsoft and Amazon are the leaders endorsing mainly for the application of the integration of cloud services because they have stakes in technological modernisation (Kondapalli, 2016).

Noteworthy, the prospects that cloud computing could add to the value of the small business are very rational and significant. Small businesses can improve their business value, economy, market reach, employee job satisfaction, customer satisfaction, sharing and collaboration, and profit margins significantly by using cloud computing.  At the same time, cloud services reduce the excessive cost of operating their business in a highly competitive market (Kondapalli, 2016).

1.1 Background of Study

Technology has reached a significant level and plays a vital part in the organization. Nowadays, small businesses also use the internet to improve their functioning since its start-up. In this present era, Internet acces is critical to the smooth function of a small business, especially in areas such as communication, marketing, nand collaboration. Small firms that are already functional in the market are now trying to upgrade and modernize their performance by embracing newer technologies that are introduced in the market. They also plan to integrate them into the goals of the companies (Aljabre, 2012). Cloud computing has provided value and economic growth to small businesses as they now get access to technologies that were not available to them before due to higher money expenditure. Therefore, they would be able to compete with other small or medium firms or even the big companies which bring them a competitive advantage in the market (Aljabre, 2012).

 It is less expensive to use the applications that are available on the cloud than to purchase, install and fix applications. This can save the money and hence can uplift the small businesses economically. Moreover, there will be no cost for up gradation of the application or infrastructure as cloud computing is frequently updated by the service providers. Thus, cloud computing can significantly help in cutting the expenses of the small businesses. Moreover, the use of one multi-application cloud service is another possibility that can suffice all the requisites of the small businesses (Dimitrov, & Osman, 2012).

 Since the Application Programming Interface (API) helps in finding the application, which is the best fit to the goals of the small businesses. The applications that are available on the cloud can integrate seamlessly within the company. Cloud computing is an advanced technology to run businesses where the applications run on a shared multi-tenant in spite of running them on a LAN or PC. It is based on the concept of the self-service where one can use any application that runs in the cloud.It just requires logging in and tailoring it according to the requirements for reaping its benefits (Devasena, 2014).

Nowadays, many organizations are running almost all types of applications in the cloud, like accounting, HR, CRM, Salesforce and custom-built applications. The customers do not need to pay for all the facilities, software, and hardware nor they have to bear the extensive maintenance and configuration of a full technology stack to run them. Hence, the Cloud-based applications are eventually become cheaper for the small business units and increase market value and economic benefits and growth of their business (Devasena, 2014).

Cloud computing extends more reliable, secure and scalable service for the small business firms. Furthermore, application upgrades are intermittently accomplished by cloud service providers to facilitate security, new features, and performance improvements, automatically, to their customers. Cloud computing has a significant effect on small companies though it is a modest idea (Devasena, 2014). However, the adaptation of cloud technology and applications do not take the valuable IT resources of small companies. Whereas the small business owner can concentrate on deploying new projects, applications, and innovations by adopting the cloud computing which helps in reaping economic growth and business value.(Devasena, 2014).

Cloud computing requirements

All cloud computing frameworks require fulfilling the criteria such as abstraction, broad network access, economics, elasticity, multi-tenancy, and scalability (Arasaratnam, 2011). The power of a cloud computing service to inflate or decrease resources to the demands of the user, and that too with confined or nearly no interaction, is known as Elasticity (Arasaratnam, 2011; Armbrust et al., 2010; Leymann, & Fritsch, 2009). Cloud computing services may be supplied as per the need of the user, and it can be stopped if not needed (Durkee, 2010). Scalability in cloud computing services helps the technology to execute comfortably in case of various load sizes (Arasaratnam, 2011; Buyya, Ranjan, & Rodrigo, 2009; Prince, 2012). The companies tend to employ cloud computing for improving the scalability of services provided by them to comply enormous resource demands comfortably (Buyya, Yeo, & Venugopal, 2008). Scalability can also be termed as management of resources to run the system normally even if the number of users gets increased (Hayes, 2008).

Multi-tendency is related to the way of sharing a pool of resources (Arasatnam, 2011; Dillon, Wu, & Chang, 2010). It helps in cheap and easy distribution of upgrades because of the lower number of application instances (Bezemer, & Zaidman, 2010). The economic advantages associated with cloud computing is because of the multi-tenancy feature of cloud computing (Arasaratnam, 2011). An organization can shift from capital to operating expenditure models for computing power due to the multi-tendency and scalability of cloud computing (Creeger, 2009). Abstraction in cloud computing provides a differentiation between getting application access and managing the hardware and subordinate software layers below it (Franklin, 2009). Abstraction is an essential and useful feature of cloud computing which permits the operational management of the system or software to be secured from the user (Arasaratnam 2011). Broad Network Access helps in delivering cloud computing capabilities to all standard devices over the network (Mell, & Grance,2011).

Cloud computing benefits

Experts have discussed many advantages that cloud computing can propose (Arasaratnam, 2011; Lovell, 2011; Marston, Li, Bandyopadhyay, Zhang, & Ghalsasi, 2011). The most striking advantages of cloud computing are flexibility, efficient utilization of resources, rapid distribution, lower cost, green computing, remote access and mobility, scalability, and a lower innovation barriers. It has been argued that the development and management of big data centers at affordable places was the key facilitator of cloud computing (Armbrust et al. 2010). The saving in cost of production can be attained by combining operational and technical resources and by using the ability of cloud computing for sharing computing power expeditiously. The higher scalability and flexibility helps in ruling out the concerns organizations experience over mobilizing resources in case of new IT capacity is required (Hayes, 2008), mainly when organic growth or supporting spikes are in need for the computing power (Buyya, Yeo, & Venugopal, 2008). It is mentioned that companies are working on cloud computing to decrease the time-to-market (Klems, Nimis, & Tai, 2009). Some authors believe that cloud computing encourages the rapid distribution of business resources and services to an existing business whenever required (Bhardwaj, Leena, & Jain, 2010). The increased mobility and remote access is another advantage of cloud computing (Conway, 2011). The users can access the data irrespective of their locations by using cloud computing (Bhardwaj, Leena, & Jain, 2010). Moreover, innovators of new ideas or services do not require significant capital to implement their thoughts or to obtain human resources for its management (Armbrust, et al., 2010). Cloud computing permits a single computer to run multiple systems simultaneously which is known as benefits of virtualization (Gupta, & Dejan, 2011; Vaughan, 2006). Hence, it is possible to use a single computer with the capacity to work as multiple computers for doing various tasks.


1.2 Problem Statement

Nowadays, small businesses are trending towards growing their scope significantly which is not only related to the increase in the number of employees, but also with the type of employees and the number of departments. Considering these facts, the cost of obtaining, implementing, and keeping a reliable and robust IT infrastructure is very much high. This has led many small businesses all over the world to fall behind in the technological advancements compared to those used by other small businesses in the world (Dimitrov, & Osman, 2012).

Cloud computing is a prominent trend in the field of Information Technology (IT). Other existing research presents the benefits and challenges of cloud computing; however, few articles take a corporate approach. Moreover, considering that cloud computing provides numerous benefits, no research has aided the understanding of the business value associated with the technology and the context within which benefits and barriers are realized. The issues in small business adaptation makes it challenging to prove the value of cloud computing on small business. It has been observed that some small business proprietors that do not adopt cloud computing for their organization might not get the benefits of cost cutting and universal accessibility. There are various problems associated with the use of on-site structures compared to the use of cloud-based services. Small business who do not adopt cloud computing and its economic benefits may result in a loss of competitiveness that might threaten their value, growth, and revenue.

 Therefore, there is a need to acquire such an infrastructure, which helps the small companies in all aspects such as cost, ease of use, security, relative advantages, universal accessibility, business and economic value. Before that, small businesses need to carefully consider the cost, requirments, benefits,  risks, and barriers of cloud computing to decide whether to adopt and use cloud computing or not. Small businesses find themselves reluctant when it comes to using Cloud computing technology that can get competitive advantages to them. The primary problem of this study is to eamine the value of  cloud computing on small business for greater economic and societal contribution. The adoption of a resource-based IT perspective to cloud computing described that small businesses units had utilized a restricted form of latest cloud computing technology which is around less than 2% (Truong, 2010). Hence, there is further need for understanding and exploring the use of cloud-computing technology for small businesses.


Roman Stoan was established in 2015. As a limited liability company and currently has 60 employees. Roman Stoan is a business consulting company that is  specialized in data analysis that help organizations make intelligent data-driven choices, design new processes or to improve existing processes to improve for process capabilities on both transactional or manufacturing businesses.

They work hand in hand with various clients to manage their business, from full autonomous control to partial control, they help organization to deliver consistent excellent performance and return on investment. They also monitor business mainly from an operational perspective to invigorate the Value adding activities and reduce as much as possible the non-value adding activities.  They generate Ideas to help reduce operational cost and also improve operational systems to become Lean, Efficient, and agile, their clients are able to respond faster to varying demands, external, economic and political stimulus.  At Roman Stoan, they have achieved an average of 10% savings in process cycle time and 45% reduction in waste. They have 2 offices in different part of the country with their head office in Lagos, Nigeria. The company own their server IT infrastructure to provide the best business for their clients which requires A private network as they work with valuable client���s operational data that must be protected from competitors.

Roman stoan���s internal communication policy is information Pull, hence all information is to be available centrally and can be retrieved by any permitted employee at any time, and this reduces the information throughput on the total number on communication channels as defined as N (N-1) /2. So to maintain a central file server is critical to the business, and a major business expenditure as well. This became a problem of keeping the business functions in sync. the company could not keep up with software updates and always had problems with outdated equipment and software which became a real impact on productivity and performance in the workplace. As their business grows so too did their workload and the demands place on their software and technology which made it challenging to sustain their equipment in both offices?  The company continually call out to engineers on a weekly or monthly basis to fix problems with their equipment, which made them spend more on IT call out charges. Maintenance and repair costs soon add up, especially because they run a business and many of employees who use desktop computer and with so much of their business data stored on their physical desktops and laptops, it became a problem for them to remember renewal licences agreements, to keep tab to backed up their data���s, upgrade their systems, and have them in sync. Before the company considered adopting cloud computing services, their present IT budget on server was 150,000 Naira per annum which covers,

Server maintenance of their internally hosted platform

IT support for each offices machines upgrades

IT support of the head office infrastructure network

Remote back up service

Alone. Therefore, they considered moving/adopting to cloud computing as a possible solution. Before they consider moving to cloud computing,

The purpose of my study is to examine how cloud-computing technology concentrates on providing true value to the small business and the economic benefits associated with Roman Stoan Nigeria Plc as a case study.

1.3 Purpose of Study

The purpose of this thesis is to examine and provide insight into the value of cloud computing. This thesis will discuss how cloud-computing technology helps in providing actual value to the small business (Roman Stone nigeria LLC)  and will elaborate on  the economic benefits associated with it. Constructs estimating the perceived attributes of cloud computing included the independent variables as well as the dependent variable with the purpose of using cloud computing to address the problem statement. The study is designed to examine the value of cloud computing on small business, a study of (Roman Stone Nigeria LLD) given small business economic importance and volatility, the overarching research questions. The correlation between every one of the independent variables composing the perceived attributes of cloud computing innovation and the dependent variable proposed to utilize cloud computing technology will be addressed by the following specific research questions. The following research questions will be considered to attain the very purpose of the study:

What does cloud computing mean to small business?

What are the recognized barriers to cloud computing in small business?

What is the value of the business of cloud computing on small business?

What are the recognized benefits of cloud computing to small business?

What impact does cloud computing hold on small businesses?

What are the cost benefits of the cloud computing for small businesses and are there any savings in this regard?

What factors should be kept in mind before adopting this IT infrastructure for the small businesses?

What are the other relative advantages it can bring to the small businesses?

What are the security and privacy benefits of the cloud computing for small businesses?

To what extent this IT infrastructure would be convenient for the small businesses in terms of utilization?

1.4 Nature of the Study

This research project intends to explore and understand the value and the importance of cloud computing for small business firms. According to Yilmaz (2013), the research method that deals with numbers and anything that is computable in an organized way of phenomena investigation and their relationships refers to Quantitative research method which is used to answer questions on relationships within determinate variables with an intent to describe, forecast and control a phenomena. In this regard, quantitative research method was employed to answer the research questions and to support the hypotheses established in this study. For this purpose, questionnaires were used, and critical analysis was made using statistical methods to analyze the findings consequently.

Noteworthy, we have considered relevant core variables in this research methodology, along with the extensive literature review. These variables are mainly economic benefits, business value and cost savings for small businesses. Therefore, a direct relationship between these key variables has been used to produce the research model to empathize the importance and value of cloud computing for small businesses.

1.5  Significance and Objective of the Study

The rise of the internet and the computing technologies have engendered changes throughout the businesses with bringing an inclination for those who fail to adopt these new technologies early enough and left behind finally. The cloud technology is revolutionizing the basis of employee productivity and, thus, leaving no enterprise out of its advantageous aura. In a rapidly changing and super-connected business world, it is becoming evident that the firms which do not integrate cloud computing are missing opportunities to expose new sources of performance improvement, productivity and IT flexibility (King, 2008).

Cloud computing helps businesses to obtain the access to software and hardware that is hosted and maintained externally rather than expensing on hiring the IT staff to install and maintain hardware and software infrastructure and its functionality. Cloud computing also offers employees to work more quickly and collaborate more efficiently during traveling or while at home. A company can allow its employees to give more time for strategic innovation and initiatives only by outsourcing its technological infrastructure to the cloud. Furthermore, the company can attain more resources to devote to value-creating activities by shifting the burden of lower-value activities (Miller, 2008).

It is important to highlight the value of cloud computing for the small companies as in comparison to the pre-cloud environment. Energy savings can be accomplished via the deployment of cloud technology, enterprises can consume resources on demand, efficient server utilization can be obtained, and services can be purveyed speedily due to the elasticity and scalability of the cloud services. The significance of cloud computing cannot be ignored, and that is why people have tremendously shifted to the Cloud services. Importantly, it is due to an increase in environmental concerns such as carbon emissions, the maturity of virtualization technology and the growth of the mobility of the employee through the devices such as smartphones and tablets (Garg, & Buyya, 2012).

 The development of cloud technology is also because line-of-business managers are taking control of IT environments and nowadays capacity management has become more challenging than it was before. Moreover, various studies have demonstrated that cloud computing provides their business with quantifiable benefits such as reduced IT expenses and maintenance costs, reduced operational costs and improved process efficiency (Devasena, 2014). A properly implemented cloud computing strategy can have unique business advantages which confront the organization with potential business benefits that could considerably affect every department. Therefore, considering the high significance of the cloud computing technology, the aim of this research is to supervise the emergence of cloud computing for the value of the small businesses mainly regarding economic growth and other relevant advantages, rather than the single perspective of the IT department.


Printed book publications were included in the literature review. The primary literature search was conducted via electronic databases, primarily EBSCOHost���s, Business Source Complete/Premier, ProQuest���s ABI/INFORM Complete, Business Dissertations and Emerald Management Journals. A total of 49 resources were found relevant including books, dissertations, government publications, and online references. The remainder was peer-reviewed journal articles.

2.1 Business value of cloud computing

Cloud computing is an important area of study that has drawn the attention of different research professionals in the recent years (Marthandan, & Tang, 2012). Most of the studies carried out in this field were about the value of cloud computing in the business. Most business organizations have raised questions to justify the need to spend on IT (Schryen, 2010). However, various articles report different reasons why companies should spend on IT. The availability of several articles has justified the demand for many research on the value of cloud computing. There is substantial evidence that a lot of studies have been conducted in this area of the investigation. However, several variances still exist in different articles. Such variances include findings, terminologies and the methods used (Kohli, & Grover, 2008). These studies that was performed by various researchers were not based on a particular theoretical model which has led to the development of different opinions regarding the evaluation of the real worth of IT in business (Schryen, 2010). Hence, the research concerning the business value of IT has become very complicated (Marthandan, & Tang, 2012).

Cloud computing is of great significance to business organizations (Buyya, Rajiv, & Calheiros, 2010). It helps firms to direct their efforts towards innovation. In this case, the companies can increase their value and improve the quality of the services offered. This can be accomplished by developing software and hardware infrastructures that help the operations of the business organizations (Buyya, Ranjan, & Rodrigo, 2009). Cloud computing promotes the business value since the firm can easily modify or change its methods of operation (Rimal, Choi, & Lumb, 2009). Moreover, virtualization enables businesses to come up with new hardware resources that let them increase their business value. It is evident that cloud computing helps business organizations to direct their efforts for innovation (Hartman, & Beck, 2011). The firms will not focus on issues concerning logistics in case of adopting cloud computing (Boss, Malladi, Quan, Legregni, & Hall, 2007). As such, they will furnish resources that promote the process of innovation (Jaekel, & Luhn, 2009). Cloud computing also enables companies to develop the effective communication strategies with their business partners, customers, and suppliers (Hartman, & Beck, 2011). Cloud computing helps business organizations to respond effectively to uncertainties or new challenges. Cloud computing determines the market value of a firm depends on the level of technology used by the company to carry out its operations. Cloud computing is of great importance to companies since they do not need to invest heavily in business operations. The reduced cost of investment permits business organizations to raise their benefits and enter new markets quickly (Jaekel, & Luhn, 2009). Some firms have gained a competitive benefit as a result of using a resource-based view (RBV). Business organizations, which can exploit their RBV, can produce unique products that help them to penetrate other markets (Melville, Kraemer, & Gurbaxani, 2004). Some authors have developed an IT business model which incorporates the research elements and a theoretical model and summarize the value of using IT in the business and the knowledge accumulated (Melville, Kraemer, & Gurbaxani, 2004).  

Figure 1. The schematic IT Business Value Model (Melville, Kraemer, & Gurbaxani, 2004).

The framework is based on three domains which include the macro environment, focal firm, and competitive environment (Melville, Kraemer, & Gurbaxani, 2004). The macro environment comprises of external factors that affect the implementation of IT in business operations. The focal firm denotes to the company that furnishes and invests in the IT resources. The competitive environment consists of the businesses that are run in the industry and different partners.

Cloud computing promotes business innovation by allowing organizations to search cost-efficiently and quickly the potential of  IT-enabled and new business enhancements that can nurture with unprecedented scale. Not only does cloud computing promotes more effective and efficient use of technical staff along with delivering a greater return on IT equipment spending.IT labor costs alone offer as much as 70 percent of its operating budget. Cloud computing eradicates much of the time usually required for provision and requisition of IT resources with its highly autonomic character (Prasad et al. 2014).

Besides this cloud computing also offers substantial cost savings in the real estate essential for the data center along with the power and cooling costs. While tripling asset utilization, studies have reported that cloud computing can save 60 percent on energy and 80 percent of floor space. Cloud computing incorporates cloud service management technologies and next-generation security with simplified security management and enforcement. It offers the organizations the same security and compliance assurances that are comparable or even better than that expected in traditional technological environments (Hashizume et al. 2013).

2.2  Small Business IT

    Information Technology (IT) gives a chance to organizations to enhance their proficiency and adequacy, and even to increase competitive benefits. Small scale business has an important part in the economic advancement of any nation. There are a few speculations, which expound the association between data innovation, financial advancement, and societal change. All concede to the significance of adopting the technology related to communication and information in small business, while the importance of small business as the generators of monetary development is all around recognized (Salleh et al. 2012).

Information technology, especially the Internet is significantly affecting the operations of any small and medium scale business, and it is guaranteed to be basic for the survival and development of country's economies. Presently, the economy and conventional business turn out to be more subject to new advancements because of technology innovation. In comparison with conventional business, innovation encourages an expanded intelligence, adaptability, inexpensive business transactions and also enhances interconnection with business accomplices and client (Beley & Bhatarkar, 2013).

   Moreover, data innovation is having a critical effect in the area of small business, especially when industries are in a decrease or when unemployment levels are high. In developing nations, small business advancement is drawing consideration as well and present day patterns of organizations and technology innovation utilizations are occurring (Beley & Bhatarkar, 2013).

2.3 Cloud-Computing Ecosystem

   The cloud-computing ecosystem is an innovation that was conceptualized in 1969. The leading pioneer of this idea is Leonard Kleinrock. He invented cloud computing ecosystem while working for Advanced Research Projects Agency Network (ARPANET) as a chief scientist. Cloud computing ecosystem has grown rapidly over the last years and is currently being utilized in different small business innovations. ARPANET also helped in the incubation of internet. The internet has since evolved and is being used in global communication. The Internet provides a platform where both software and hardware technologies are connected to enhance access and utilization of various technological assets. Therefore, cloud computing allows one to access the data stored on the web and other running programs on the internet as opposed to using one���s computer hard drive (Cheng, 2010). Scalability rapidly provisioned and metered information technology assets allows users to access computing services via the Internet (Smith, 2009). Cloud computing is a manifestation of computing technologies that have led to the development of the new internet era (Etro, 2009). Cloud computing has been categorized into different context by the National Institute of Standards and Technology (NIST). These contexts include deployment approaches, essential characteristics and service components (Mell & Grance, 2010). There are four essential characteristics namely measured services, on-demand self-service, resource pooling rapid elasticity and broad network access. The service components are three. They include platform as a service (PaaS), infrastructure as a service (IaaS) and software as a service (SaaS).

Figure 2:Types of cloud computing services by Big Data Riding (2013)

The diagram above represents the three service components. IaaS comprises of the networking and hardware devices. The SaaS is made up of user interfaces and application functionally components. The PaaS comprises of many components. They include operating systems, virtualization, service platforms, databases, and application program interfaces (APIs). The deployment approaches comprise of three strategies. They include public, private and community strategies. Cloud computing has evolved from a system of an open source software leading to the development of a large environment where people can access the information over the internet (Sharif, 2010). The open source software system is the primary contributing factor to cloud computing. It has made cloud computing to become practicable and feasible (Dwivedi & Mustafee, 2010).

Open source software is emerging in SaaS. Previously, it was a dominant force in PaaS and IaaS. It was utilized in the database environments and operating systems of PaaS and IaasS respectively. Today, it is being used in different open source projects. The primary objective of the open source is to enable mobile technology and IT applications (Vescuso, 2010). Cloud computing is different from supercomputing capabilities. Supercomputing capabilities are used for large scale data. It is utilized and controlled by academic research centers, government institutions, and large corporate organizations. Cloud computing was conceived to support broader or global Internet while traditional computing or IT was envisaged to support operations in business organizations (Etro, 2009). The primary basis of cloud computing was to promote universal rapid internet services on-demand at any given place. It uses different technological resources such as computers, servers, applications, storage, networks, and various IT services (Katzan, 2008). The cloud-computing ecosystem is designed on consumable computing facilities. The consumable computing facilities are based on networked and virtual software and hardware technologies. The computing services are also based on recursive layering that comprises of both hardware and software technologies (Blaskovich, & Mintchik, 2011). Traditional utility computing relies on cloud computing (Katzan, 2008). This is because the capital investment needed for a large-scale information technology is managed using cloud computing. The payment and provision of IT services are controlled or managed via cloud computing (Mell & Grance, 2010).  


Figure 3: Cloud computing deployment service modle by Marwin Britto (2013)

The cloud-computing ecosystem is made up of service and deployment models. The deployment models are public, community, hybrid and private models. The service models used in the ecosystem include PaaS, IaaS, and SaaS.  The user interface and other relevant applications are provided by SaaS. PaaS is used to provide layered interfaces, operating systems, databases, and virtualization. Lastly, IaaS is responsible for the provision of servers, data storages, and networking services.

The Cloud Computing Paradigm was used to modify the ecosystem model (Peter & Tim, 2009). The cloud computing model was adopted by the National Institute of Standards and Technology and published by the federal government of the USA. Cloud computing is based on the emerging technologies. This is different from an earlier initial conception that viewed cloud computing as hardware-as-a-service (HaaS). The current technological innovations of cloud computing are based on industry market sustainability, technology intricacies and customer value perspective (Sahoo, 2009). According to Vouk (2008), SOA is a critical component of cloud computing. Workflow management, virtualization, and SOA are used in the architectural development of cloud computing.

2.5 Implications for social change

To attain sustainable advantage by using cloud technology, small business leaders should pay attention towards the personal skills development as cloud computing support skills require tightly coupled integration with business strategy and greater governance. The social implications associated with small businesses for incorporating cloud technology signify the transformation and obsolescence of designated personnel skills. Development of personal skills mutually influence the perceptions about the cloud-computing attribute complexity for improved use of cloud-computing technology along with enriching employees��� competencies (Low et al. 2011).

Environmental concerns linked with electronic equipment waste and energy consumption have grown to global extents. Many nongovernmental organizations and regulatory agencies have focussed on forming the strategies to deal with these environmental concerns. Cloud-computing innovation was reported as considerably reducing electronic equipment disposal and consuming almost one-third less energy along with transcending the economic benefits credited to small business adoption of the cloud-computing ecosystem (Garg & Buyya, 2012)

By reducing electronic equipment waste and decreasing energy consumption, the targeted cloud-computing strategies have noteworthy positive implications for small businesses. Moreover, regarding the prioritization of environmental strategies for even better environmental results, these implications were envisioned to educate the policymakers (Garg & Buyya, 2012).

Social entrepreneurs have been perceived as recognizing and taking care of social issues of a grand scale. Even though social entrepreneurs commonly are not benefit inspired, the operationalized IT ability anticipated by means of the novel cloud-computing business model gives economic value to social entrepreneurs. The relative advantage credited to cloud-computing innovation offer similar positive implications for social entrepreneurs as ascribed to small businesses (Low et al. 2011).

3.0 Research Methodology

3.1 Introduction

This chapter provides a discussion of the research methodology that was employed in this study. It discusses the research design, especially with respect to thechoice of the design. It also discusses the population of study, sample and sampling techniques, data collection methods as well as data analysis and data presentation methods employed in the study.

3.2 Research Design

Research design refers to strategies used to bring together various components of the study to allow the researchers address issues related to the research problem (Creswell, John & Cheryl, 2017). The research design the blueprint of the research problem. It ensures logical flow, accurate measurement, and data analysis.

According to Creswell et al., 2017, the primary goal of the exploratory research studies is ���formulating a problem for more precise investigation or of developing the working hypotheses from an operational point of view.��� This study utilizes exploratory research design. It is used to determine the relevance of cloud computing to small business. Exploratory research design outlines the economic benefits of cloud computing in small business (Creswell, John & Cheryl, 2017). Research can either take the form of qualitative or quantitative research approach. The numerical data is used to carry out quantitative analysis.  The quantitative approach focuses on data collection which may take the form of questionnaires, statistical techniques, and interviews.

3.3 Research Objective

The aim of this research is to explore the value and benefits of cloud computing for small business regarding cost and security.  The primary objective of this paper is to provide information on the security costs and benefits of cloud computing. The research does not generalize the numerical quantitative research approach has been utilized since the findings rely upon the subjective assessment of data or opinions. The approach taken in this research reviews the existing literature. The data since it employs quantitative analysis (Creswell, John & Cheryl, 2017). The opinions or data collected from the interviews are also used for analysis of the empirical data (Creswell, John & Cheryl, 2017)

The independent variables include Cost and benefit factors, technological factors, Privacy and Security factors and Convenience factors and the dependent variable is the adoption of cloud computing. The study is guided by four independent variables; benefits of cloud computing, privacy and security factors of cloud-based services and value of cloud computing in strategic business operations and cloud computing adoption. The explorative design provided proper and succinct recommendations to the management of Roman StoanNigeria LTD

3.3 Population and Sampling Design

3.3.1 Population

According to Cooper and Schindler (2000), a population is the total collection of elements about which we wish to make inferences.The target population in the study was all the emplemployees of Roman StoanNigeria LTD and their various departments. The reserch should be carried out from the sample as opposed to the entriere organizations. This is because samples are simple and cheaper to use.

3.3.2 Sample Design

Cooper and Schindler (2000) add that a sampling frame should be a complete and correct list of population members only. The sampling frame for this study was listof  the employees Roman StoanNigeria LTD. The list constitutes a total of 60 employees of Roman StoanNigeria LTD from both office locations in Nigeria,and including driver���s two (3) drivers each and three (3) cleaners for each branch of the company who was exempted from the administration of the questionnaires. The choice of this sample size took into consideration the population size, homogeneity of respondents, level of accuracy desired and rate of the respondents. Sampling Frame

The sample will be determined using statistics. Stratified sampling technique will be used to select the sample. This method allowed the researcher to divide the sample into appropriate strata that are mutually exclusive. According to Coopers and Schindler (2000) stratified sampling gives statistical efficiency increase on a sample, provides adequate data for analyzing the various sub-population and enables different research methods and procedures to be used in different strata.

Table 1: Showing the staff strength per location in Lagos and Abuja

Categories Population (No of staff) Sample Size

Lagos 30 28

Abuja 21 19

Others 9 0

TOTAL 60 47

3.5 Ethical Consideration

An ethical consideration in accordance with the American Psychological Society (APA, 2002) standard was used as a guide. In order to carry out this research amongst the staff Roman Stona Ltd., a request for approval to conduct the research in their branches was sent to the Head, Human Resources at their Headquarters in Lagos and their consent was received via email for the questionnaires to be sent to members of their staff (see appendixIII). The approval from the Head of Human Resources also made it easier for us to have access to the email addresses of the staff where the questionnaire link was sent. Consent of the participants was equally obtained as the questionnaire was designed in such a way that the participants had the opportunity to read and understand their rights and were presented with an option to opt out of the study at any time without penalties. A copy of the consent page can be seen in Appendix II.  They were provided first with a document that shows a brief about the study and their rights as participants and they were assured that their data will remain anonymous, they were then asked to check the consent box before completing the questionnaire it they were willing to participate further. This they consented to by checking the consent box provided.

3.6 Instrument for Data Collection

To obtain the necessary and desired information, a questionnaire was used as the research instrument. Primary data collection method was adopted in this study. The questionnaire was designed to collect information from the respondents which  will reveal their opinions of the value of cloud computing on their busniess . The data was collected using questionnaire developed by the researcher on the basis of research questions.  It is also necesseriy to note that most of the reseach questions used for insturements were adapted from a pervious studies on adoptaion of cloud computing ny small businesses, innovation.The questionnaire contained five (5) parts, the general information (division of staff, working experience of staff and usage of cloud computing services), technological factors comprises, cost and benefits, Pravcy and Security, Adopation of cloud computing techonology, covenices. The questionnaire tool is based on a 5 point Likert-Scale. The Likert scales points include Strongly Agree, Agree, Neutral, Disagree and Strongly Disagree. A Likert scale is composed of a series of four or more Likert-type items that are combined into a single composite score/variable during the data analysis process (Boone & Boone, 2012).

The questionnaires designed by the researcher based on the research questions were pre-tested through a pilot study to ascertain the validity and reliability of the tool before the actual administration. The pilot study was conducted among 5 respondents to check for inconsistencies in the research instrument. The questionnaire was estimated to take to even-ten (7-10 ) minutes to complete.

3.7 Procedures for Data Colections

The questionnaire is structured to ensure that the respondent understands them and therefore respond suitably. The developed questionnaire aimed to capture respondents��� opinion about cloud computing, and other factors that may influence their decision to adopt cloud computing. The questionnaire was sent to the employees online for a short period of three (3) days due to the short time that the project had to be conducted. The respondents from the company employees were  (47) which represented (92%) of the expected fifty one (51) sample size for the study.Their responses were downloaded from survey monkey. The data was collected and analyzed using the Statistical Package for Social Sciences (SPSS 20.0) program

3.8 Method of Data Analysis

This study used the quantitative method of data analysis. (To ensure easy analysis, the questionnaire was coded according to each variable of the study to ensure the margin of error is minimized to assure accuracy during analysis. The purpose of this study, Pearson���d Product moment Corrolation as an analytical tool was employed to measure the degree of relationship bewtwwen the variables. The quantitative analysis is applied using descriptive statistics as well as the central tendency used are the Mean, Mode, Percentages,and frequency. This study combined both veriables the  researcher also used correlation analysis to explain the relationships between the independent variables and dependent variables. Multiple Correlation methods of analysis  are commomly used to examine the relationship two  quantitative varables as it quantifies the  strength of association between the two variables.

r=(���_(i=1)^n���(x_i-x �� )(y_i-y �� ) )/���(���_(i=1)^n������(x_i-x �� )^2 (y_i-y �� )^2 ���)

where x ��  is the mean of the x values, and y �� is the mean of the y values. (Pearson correlation coefficient). The value of r always lies between -1 and +1. Where +1 shows a strong positive relationship and -1 show a strong negative relationship. When the value is close to 0, it indicates that no direct relationship exists between the variables.

3.9 Hypothesis Testing

According to Gbogboade (2017) The correlation coefficient is used to verify a direct relationship between the variables in the population. The null hypothesis means that the sample correlation coefficient equals 0.  While the value of r can be compared with what is obtained from the statistical package used.

The decision rule when testing hypothesis is to reject the null hypothesis if the p-value is less than alpha(��) that is the significance level. It suggests that if the null hypothesis is rejected, it means that there is evidence that the sample correlation coefficient is not 0. The null hypothesis will be rejected in this study if p value is p<0.05, this means the significance level is 5%, being 95% confident of the analysis and findings of this study. In an ideal situation with a  99% research outcome confidence, the significant level of 1% (0.01) would be adopted. Hypothesis are ideas or working statements put forward as a starting point for reasoning or expectations which may  accepted or rejected after testing.

Based on the theoretical and empirical reviews, the null hypotheses to be tested in this study are:

H01: Do cost reduction has a positive impact when it comes to convenience and ease of use.

H02: Do cost reduction has a positive outcome regarding collaboration and easier sharing.

H03: Cost saving or cost reduction has a progressive effect on the adoption and usage of cloud computing.

H04: Privacy and Security improvements are directly related to cost savings or cost reduction for small businesses.

H05: Privacy protected and better-secured cloud solution has positive impacts on the ease of use for the small businesses as they can adopt and use this technology without worrying.



4.1 Introduction

This chapter comprises of the data analysis presentation and interpretation of the study findings. They are presented in sub-sections which include the general information, factors of cloud computing usage, cost and benefits of cloud computing, privacy and security, adoption of cloud computing, and convinces  cloud computing. Data is presented in tables. The response rate for the study was 47 respondents, 4 were missing values out of the expected sample size of 60 respondents which translates to a response rate of 92%.

4.2 Descriptive Analysis

The data was analyzed for both descriptive and frequency���s, and then correlation analysis was carried out to study the extent of the relationship between the variables (factors of usage of cloud computing, cost and benefits of cloud computing, privacy and security of cloud computing, and convenience of cloud computing.

In this section, the results of univariate analysis are discussed. Each variable is described in more details by performing descriptive analysis. For each variable its mean, standard deviation, frequency and Pearson correlation. It should be mentioned that the missing values of my data were replaced by the series mean. Missing values can be handled in different ways. Such as deleting the observations or replacing it with some values. These values can be means, medians etc. In data sets that have low number of missing data, deleting the observation is not a wise idea; and replacing them with some values is more appropriate. My sample���s missing values were less than5%; 5%, which is considered as relatively low level of missing values; therefore replacing them by the series mean, is an appropriate method. According to Heir et al. when the amount of missing values is less than 10% any imputation method is appropriate. The descriptive analysis is performed after the missing values were replaced.

2. What is your gender?

Frequency Percent Valid Percent Cumulative Percent

Valid Male 26 72.5 78.7 78.7

Female 21 19.6 21.3 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

There was gender equity (there is no large gap in the number of female and male respondents, vice versa) across the various positions of respondents that took part in the survey. Of the participants in the survey, 26 (51%), while females accounted for 21(41.2%).

3. What is your age bracket>

Frequency Percent Valid Percent Cumulative Percent

Valid Less than 25 years 10 19.6 21.3 21.3

26 to 35 years 17 33.3 36.2 57.4

36 to 45 years 14 27.5 29.8 87.2

45 years above 6 11.8 12.8 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The age bracket of  the employees that participated in this survey shows that less than 25 years of age are 10 (19%), 26-35 years were 17 (33%), 36 ��� 45 years were 14 (27.1%) and 45 years and above were 6 (11%). This shows that the major decision in this survey were taken by the age brackets: 26 ��� 35 and 36 ��� 45 years respectively.

4. What is your highest level of education?

Frequency Percent Valid Percent Cumulative Percent

Valid Higher school 3 5.9 6.4 6.4

Bachelor 27 52.9 57.4 63.8

Masters 12 23.5 25.5 89.4

Doctorate 5 9.8 10.6 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The above table shows the highest level of education reached by each employee, employee���s with High school certificates were 3 (5%), those with  Bachelor degree were 27 (52%), Masters were 12 (23%), while  Doctorate degree were 5 (9%). This explained that there are more employees with Bachelor degrees in the organization.   

5. Which of the following best describes the department you work in?

Frequency Percent Valid Percent Cumulative Percent

Valid Executive 2 3.9 4.3 4.3

Information Technology 3 5.9 6.4 10.6

Project Management 9 17.6 19.1 29.8

Operations 14 27.5 29.8 59.6

Finance 1 2.0 2.1 61.7

Sales/Marketing 16 31.4 34.0 95.7

Others 2 3.9 4.3 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

There are seven main departments that participated in this survey, 2 were executives (3%), Information Technology were 3 (5%), project management were 9 (17%), Operations were 14 (27%), Finance was 1 (2%), Sales/Marketing personnel���s were 9 (17%), and lastly Others is 2 (3%).

6. How long have you worked for the company?

Frequency Percent Valid Percent Cumulative Percent

Valid 3 to 6 months 2 3.9 4.3 4.3

6 to 1year 9 17.6 19.1 23.4

1 to 2 years 13 25.5 27.7 51.1

2 to 3 years 10 19.6 21.3 72.3

3 years above 13 25.5 27.7 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The table shows that 2 (3.9%), have worked for the company between the period of 3-6 months, while 9 (17.6%),  between 6 month-1 year, 13 (25.5%) 1 to 2 years, 10 (19.6%) 2 ��� 3 years and lastly 3 years and above is 13 (25.5%).

7. Which of the following best describe your position here?

Frequency Percent Valid Percent Cumulative Percent

Valid Entry level 14 27.5 29.8 29.8

Office Management 7 13.7 14.9 44.7

Middle Managerial Level 6 11.8 12.8 57.4

Project Manager 9 17.6 19.1 76.6

Business Analyst 11 21.6 23.4 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The table above depict number of employee���s level in the organization from top to bottom. In this survey, Entry level shows 14 (27%), Office Management level 7 (13%), Middle Managerial level 6 (11%) Project Manager 9 (17%), and lastly Business Analyst is 11 (21%). This shows that majority of the positions are Entry Level positions.

8. Select all cloud computing technology used by your organization

Frequency Percent Valid Percent Cumulative Percent

Valid None 3 5.9 6.4 6.4

SaaS 21 41.2 44.7 51.1

IaaS 11 21.6 23.4 74.5

PaaS 9 17.6 19.1 93.6

Others 3 5.9 6.4 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The employee where asked to answer the type of cloud computing technology utilized by the company, about 21 (41%) says the company uses SaaS, 11 (21%) believes the company uses IaaS, 9 (17%) says PaaS as their cloud computing technology and 3 (5%) choose none and others. The table shows that company use more SaaS services at 41%.  

9. Which of the cloud service model is your company/business using

Frequency Percent Valid Percent Cumulative Percent

Valid Public 11 21.6 23.4 23.4

Private 26 51.0 55.3 78.7

Hybrid 6 11.8 12.8 91.5

Community 4 7.8 8.5 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The respondent where asked to answer the model of cloud computing technology adopted by their organization, 11 (21%) said the company uses Public, 26 (51%) said Private, 6 (11%), said Hybrid while 4 (7%) said the company uses Community as their cloud computing technology. The survey shows that 21% of the respondents indicates that the company use Private Cloud.

10. How many employees are employed in your company/business?

Frequency Percent Valid Percent Cumulative Percent

Valid 0 to 9 employees 0 0.0 0.0 0.0

10 to 49 employees 15 29.4 31.9 31.9

50 to 149 employees 26 51.0 55.3 87.2

150 above employees 6 11.8 12.8 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The staff strength of the organization as perceived by respondents 0 ��� 9 employees is 0 (0%)  10 ��� 49 employees is 15 (29.4%), 50-149 employees is 26 (51%) while that of 150 employees and above is 6 (11%).

11. How many years have you known about cloud computing?

Frequency Percent Valid Percent Cumulative Percent

Valid 1 years 12 23.5 25.5 25.5

1 to 3 years 21 41.2 44.7 70.2

4 to 6 years 14 27.5 29.8 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

The participant in the survey where asked about their knowledge of cloud computing. Have 12 (23%), have had knowledge of cloud computing, 21 (41%) between 1-3 years, while 14 between 4-6 (27%).

12. Have you previously use cloud computing?

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 18 35.3 38.3 38.3

No 29 56.9 61.7 100.0

Total 47 92.2 100.0

Missing System 4 7.8

Total 51 100.0

Number of the respondents in the survey said yes to pervious have previously used cloud computing, are 18 (35.3%), while No accounted for 29 (56.9%). See Appendix for graphs.


Table 13: Summary Factor of Cloud Computing

Options Total Sum   Percentage (%)


AGREE 165 30.61

NEUTRAL 88 16.32


DISAGREE 80 16.14

TOTAL 539 100

Based on the result of analysis, the option with the highest observation (total) is two (2): Agree. Most of the respondents agree with Factors with about (30.61%) of the responses, followed by strongly agree option with about (25.97%), while Neutral option was about (16.32The reason for this may be that the participants do not understand the statements well or may not want to totally agree with the factors. Some of the participants out rightly disagreed with about (14.84%).Thus our highest respondent quite agrees that factors make small businesses go for cloud computing technology as a preferred choice.


Table 14:  Summary of Cost and Benefit of Cloud Computing

Options Total Sum Percentage (%)


AGREE 156 31.52

NEUTRAL 124 25.05


DISAGREE 43 8.69

TOTAL 495 100

Out of the collected total sum of the questions on Cost and Benefits, for all participants, (there is no large gap in the number of strongly agree and Agree respondents, vice versa) the option with the highest number of responses strongly agree with the questions in the questionnaire is option one (1) with about (32.12%) responses, (31.52%), then Neutral (25.05%), Strongly disagree (2.63%), and Disagree (8.69%). Therefore, we can deduced from this that our respondent believe cloud computing really saves cost and add values to the business.


Table 15: Summary Adaptation to Cloud Computing

Option Total Sum Percentage (%)


AGREE 168 39.25

NEUTRAL 103 24.07


DISAGREE 23 5.37

TOTAL 428 100

The result of the above on the adaptation of cloud computing shows the total option of observations, occur with most participants agreeing to the questions put in the questionnaire, that about the adaptation and utilization of cloud computing by small businesses. More than (39.28%) of the participant agreed to the adaptation of small business, (28.5%), Strongly Agreed, which simply means that the highest numbers of respondent believe that small businesses should adopt cloud computing technology for increased business value.


Table 16: Summary Privacy and Security of Cloud Computing

Options Total Sum Percentage (%)


AGREE 81 25.8

NEUTRAL 62 25.44


DISAGREE 50 20.5

TOTAL 283 100

The respondents in this table 15 above shows that most of the participants believes that their information is secured and save, with highest been Agree of (19.79%), Strongly Agree ( ) Neutral (21.91%) while Disagree (17.67%), and Strongly Disagree (12.01%), The interpretation to this is that respondents believe in the privacy and security of cloud computing to small business as oppose to those that do not believe.


Table 17: Summary of Convenience use of Cloud Computing

Options Total Sum Percentage (%)


AGREE 91 24.20

NEUTRAL 74 19.68


DISAGREE 60 15.96

TOTAL 376 100

Our respondents perceived that cloud computing has make their work/task easy and convenient to use with Strongly Agree (26.86), Agree (24.20%), Neutral (19.68%), (15.96%) strongly disagree 50 (13.3%). The correlation of

4.3 Correlation of Analysis

Table 18: Correlation Analysis

Factor to Cloud Computing Cost and Benefit of Cloud Computing Adaptation to Cloud Computing Privacy and Security of Cloud Computing Convenience use of Cloud Computing

Factor to Cloud Computing Pearson Correlation 1 .350 .253 .341 -.023

Sig. (2-tailed) .356 .452 .181 .936

N 25 9 11 17 15

Cost and Benefit of Cloud Computing Pearson Correlation .350 1 .151 .172 .359

Sig. (2-tailed) .356 .658 .593 .343

N 9 18 11 12 9

Adaptation to Cloud Computing Pearson Correlation .253 .151 1 .396 .441

Sig. (2-tailed) .452 .658 .202 .131

N 11 11 22 12 13

Privacy and Security of Cloud Computing Pearson Correlation .341 .172 .396 1 .370

Sig. (2-tailed) .181 .593 .202 .119

N 17 12 12 31 19

Convenience use of Cloud Computing Pearson Correlation -.023 .359 .441 .370 1

Sig. (2-tailed) .936 .343 .131 .119

N 15 9 13 19 29

The result of the correlation analysis shown above is that the coefficient figure for the relationship between factor of cloud computing and convenience to cloud computing [r = -0.023, p = 0.936] is negatively related, this mean there is no opposite relationship between the two. The relationship between cost and benefit and adaptation to cloud computing [r = 0.151, p = 0.658] is positively related, this explained the relationship between cost and benefit to cloud computing and the adoptation to cloud computing.

For the relationship between privacy and security to cloud computing and factor to cloud computing [r = 0.341, p = 0.181] has a positive correlation which further explained that privacy and security to cloud computing relationship is more than moderate.

From the above test result it proves that our hypotheses are true;

4.4 Hypothesis tests

From table 18 showing the result of the analysis, the following can be deduced in relation to earlier hypothesis;

Hypothesis 1

  This is absolutely true has employees of small businesses may decie to work from anywhere outside the office but with laptop and free/easy acess to company's data, it makes their work esy and convenient and this invariably saves them cost.

Hypothesis 2

This is strongly supported has small business enterprise can easily share data/information on new technology and also collaborate with other small business owners in another states, region or country through video conference, telephone conversation and emails which saves the owner cost on travel tour, per DM, risk and other logistics.

Hypothesis 3

This is also true for small business owners that adopt cloud computing technology because they can easily do business in any place at any time provided their is internet in some cases they can also have access offline Cloud Computing provide such service which saves them lots of cost and also provide them more advantage over their rivals.

Hypothesis 4

This is perceived  true as small business owners need not to worry on security has Cloud Computing has a strong features that protect their clients data/ information from hackers 24/7 even though some small businessowners still in doubt.

Hypothese 5

This is also supported has managements of small business enterprise can absolutely worry less on installation and update of new softwares to prevent data/information being hacked or leaked (or in house software development to protect company's data). Small business owners that adopt this technology feel safe  more and worry less.

Chapter  5


5.1 Discussion

The research objective is centered on ���how cloud-computing technology concentrates on providing true value to the small business and the economic benefits associated with it���. Table (no) shows the relationships among the factors to cloud computing, cost and benefit, adaptation, privacy and security and convenience use of cloud computing. Our hypothesis shows that there is a strong relationship between adaptation of cloud computing and privacy and security [r = 0.396, p < 0.202] which indicates that the business find it convenience and also rely on it for its security. Factors and cost and benefit of cloud computing relationship [r = 0.350, p < 0.3560] suggest a positive relation as factors to cloud computing as really show it is cheap compared t non-cloud computing. According to Marks (2012), the cloud is not yet a viable option for most small businesses because the rent is still very high but might become affordable in the next three to five years. However, prior research projected that the relative advantage of cloud computing for small business was expected significant (Buyya et al., 2009; Etro, 2009; Gens et al., 2010; Greengard & Kshetri, 2010). Further correlation between factors and convenience to use [r = -0.023, p > 0.936] is statistically insignificant, that is the relationship between them show negativity. This is perceived that convenience to use is not a factor why the firm adopt cloud computing.  [()].

Convenience to use cloud computing has a very strong relationship with its adaptation [r = 0.441, p < 0.131-] this suggest that the organization use of cloud technology has made them adopt the system. The propensity to use and the adoption rate of IT innovation has been shown to improve competitive advantage (Conrad, 2010; Truong, 2010). From the analysis, all the variables positively correlated with convenience to cloud computing except factors to cloud computing. Similarly, convenience use of cloud computing has been seen to have a big impact on both employees work rate and ease of doing business. This implies that employee can perform faster and easier and deliver on time any task given to him and also give the business a competitive edge advantage to other businesses that do not adopt cloud computing (Anuoluwapo). Further analysis of the data shows that constructs such as age, department, knowledge, and experience all played a role in the positive outcome between cost and benefit of cloud computing and factor to cloud computing.

5.2 Conclusion

This study concludes that cloud computing technology is new in Nigeria and its adoption by small business entrepreneur is still slow as most of the players do not know its business value and benefit. The adoption of cloud computing by Roman Stoan Nigeria limited was because the company could not keep up with software updates and always had problems with outdated equipment���s and software which became a real impact on productivity and performance. The study shows the reason the business is striving is because cloud computing saved the on cost on investment on hardware information technology, they have also benefitted from it. Our hypothesis has shown that factors to cloud computing are the reason behind why the organization decides to adopt the technology and this has made them a strong competitor. According to Desmond (2012) cites that ���cloud computing for small businesses is a myth���. Another reason is cost saving through privacy and security even though one of the major challenges that are hindering the adoption of this technology in Nigeria is the problems of constant power supply, poor internet services, and fear of hackers. there are worries by some firm that cloud computing exposed them to hackers but it saves them cost of employing and training IT personnel on new technology and upgrades. The research of this study was limited to just Roman Stoan Nigeria which makes it the findings not applicable to other small scale businesses from different part of the world. One of the biggest limitations is the sample size used for this research this may be the reason the research did not get a significant results for majority of the independent variables.

5.3 Limitations

1. Due to time and budget and difficulty to get a small business organization that adopt cloud computing, therefore the research of this study is limited to just a company due to budget and time limitation. ���Overall, the results of this study cannot be generalized���, Shima Ramezani Tehrani (2012).

2. In Nigeria, getting a small business of such that uses cloud computing services or technology is difficult due to the size of small businesses in Nigeria

3. Lack of awareness of cloud services most small and medium scale businesses in Nigeria.

4.Lack of time: Because the time was limited, I was unable to cover the topic in a broader range and had to change the scope of the study twice.

5.4 Recommendation

Based on the results of the current research study, further investigation into the business value of cloud computing innovation and adaptation can provide clarity on the current hypothesis. The research should aim at the following;

Government of Nigeria needs to step in by engaging small scale business owners, company���s on why they need to adopt cloud computing and also, provide them incentive���s.

Aggressive campaign/advertisements of the business value

I suggest that further research is needed to be carried out on Small scale businesses to give a solid understanding on the subject matter and also to create awareness.

More academic research needs to be conducted on the factors and adoptation of cloud computing as it relates to small scale businesses, especially in developing companies.

More research needs to be conducted on cost analysis of cloud computing

Further research could also explore what various factors measured in this study to impact and the level of value cloud computing on small business.

Government needs to intervene through the provision of constant power supply as it affects company that provides cloud computing services such as Goggle, Amazon, Oracle, and Microsoft to expand their business to small and medium enterprise.  

The future study should also explore the use of a different measuring tool for factors of cloud computing, adaptation of cloud computing, cost reduction and ease of use of cloud computing, privacy and security of cloud computing for a different outcome.

It industry���s needs to do more by providing free online training for small businesses for on cloud computing.


The data was analysed for noth descriptive, frequencies, and percentage, then correlation analysis was carried out to study the extent of the relationship between the variables.


As shows all through this studys, cloud computing has numerous values and benefits  associated to it. However, , like other technology, cloud computing services have some  downside but it can been showed that values and benefits of cloud computing outweights the downsides aspected.  

Making use of cloud computing correctly and efficiently in a business can not only increase profits for a company by allowing fewer employees to work remotely, but it can also increase the productivity of a company. Employees no longer need to wait for its members to gather to work on a single project, rather they can commute to the cloud via the Internet to work from wherever, whenever while still remaining up to date with their project partners. As more and more companies turn to cloud computing to save money and to increase business value, the future of cloud computing becomes more uncertain. It is uncertain how cloud computing service providers will react to their competition. How will these service providers continue to try and outdo their competition? What seems to be certain is that the popularity and userability of these services will

only continue to increase, especially while companies are continually forced to adjust to decreased budgets, layoffs, and a struggling economy. Cloud computing offers its customers the services it needs to be successful, innovative, and in step with their competition.

WE can see that the adaptation of cloud computing has mmade the running of business for easy for Roman Stone Nigeira Ltd.


Because the project had a particular period to be finished I had the following limitations and delimitations:


Lack of time: Because the time was limited, I was unable to cover the topic in a broader range and had to change the scope of the study twice.

Lack of recent articles on the project topic. I was challenging frinding literature and mterials to discuess the chosen topic. Most literature that were relevant to my study were  written in early 2000���s,

Because I was unable to gather enough data���s on the choen topic for sys was getting data to analyze for systematic review, I had to change the methodology used from systematic revive to employe the use of qualitative  methods for my methodology.

The most challenging of all was  looking for  and waiting for responses from  selected  small businesses in Nigeria to use as a case study. Most businesses did not reponde  and also, the rspondes was slow because of the time difference between Nigeria and the United State of America.  

...(download the rest of the essay above)

About this essay:

This essay was submitted to us by a student in order to help you with your studies.

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, . Available from:< > [Accessed 26.05.20].