HOW CLOUD COMPUTING 3rd post (1)

3 Response rate ......................................................................................................................................... 18 Demographics: ................................................................................................................................... 18 Gender ............................................................................................................................................... 18 Age Group ......................................................................................................................................... 19 Highest Professional Qualification .................................................................................................... 20 Position in the Company .................................................................................................................... 22 Company's Sector .............................................................................................................................. 24 Company Engagement in Cloud Computing Operations ................................................................... 25 Length of Company Existence ........................................................................................................... 26 Number of Employees in the Company ............................................................................................. 27 Descriptive Analysis of Study Variables ............................................................................................ 28 Motivating factors affecting SMEs' use of cloud computing. ............................................................ 29 Market strategy was applied in the company's SME's adoption of cloud computing ......................... 30 Market approach employed in the company's SME's adoption of Cloud computing ......................... 30 The Benefits of Cloud Computing Adoption by SMEs ...................................................................... 31 The Benefits of Cloud Computing Adoption by SMEs. ..................................................................... 31 Barriers to adoption of Cloud computing by SME’s. ......................................................................... 33 Barriers to adoption of Cloud computing by SME’s .......................................................................... 34 Inferential analysis of study variables .................................................................................................... 35 Reliability Analysis ............................................................................................................................ 36 Reliability Analysis ............................................................................................................................. 36 Correlation ......................................................................................................................................... 36 Correlations ....................................................................................................................................... 36 Chapter Summary .................................................................................................................................. 37 CHAPTER FIVE ....................................................................................................................................... 38 DISCUSSION, CONCLUSION AND RECOMMENDATIONS .......................................................... 38 Introduction ....................................................................................................................................... 38 Summary ........................................................................................................................................... 38 Discussion ............................................................................................................................................. 40 Factors Influencing SME Cloud Computing Motivation ................................................................... 40 Strategies for Entering a Market ........................................................................................................ 41 Cloud computing's advantages in the United States: .......................................................................... 42 Obstacles to cloud computing in the United States: ........................................................................... 43

6 Research Objectives and Questions The primary purpose of this dissertation is to study the benefits of cloud computing for small and medium-sized businesses. In order to achieve this aim, the following research questions will be investigated: How can small and medium-sized companies (SMBs) get the greatest benefits from cloud computing? What are the most important challenges that small and medium-sized enterprises face when adopting cloud computing, and how can they be overcome? How do the benefits of cloud computing alter when applied to different markets? What are the most effective cloud migration strategies for small and medium-sized businesses? To what degree may new innovations in cloud computing benefit small and medium-sized businesses? Research Goals and Restrictions The major purpose of this research is to look into the benefits of cloud computing for SMEs. We'll include a wide range of them to ensure that the study's findings are applicable across industries. Due to time and money constraints, this research will not go deeper into the technical aspects of cloud computing implementation. Instead, it will concentrate on how cloud computing will effect enterprises and what factors should be considered. The research findings and recommendations will be based on a thorough evaluation of the aforementioned literature, case study analysis, and expert comments. Despite efforts to include a

9 reduced costs, competitive advantage, and the necessity for external computer help. Furthermore, firms that embraced cloud computing demonstrated increased resilience in the face of unforeseen obstacles, since normal operations could be carried out even when staff worked from home. Yeng (2015:23) investigated how small and medium-sized firms (SMEs) in Northern Malaysia use cloud computing, namely E-Commerce. This study, which was based on the Asian avian flu pandemic, highlighted the utility of cloud computing in the face of a pandemic. Organizations that had previously embraced cloud computing were more likely to survive the pandemic because they could continue to operate even in the face of the outbreak. As a result of not having to halt their operations, these companies saved money by avoiding fines and reimbursements for late deliveries. 4 However, the researcher admitted that the study's small sample size was a limitation, and it was recommended that future research should utilize a bigger sample size to achieve more accurate results. Wachanga (2018:75) is another case study that investigates how small and medium-sized organizations (SMEs) might profit from cloud computing. The investigation was conducted in the Kenyan city of Nairobi. According to the study, cloud computing has a number of beneficial consequences on the productivity and efficiency of small and medium-sized businesses (SMEs). Furthermore, these SMEs have built and kept a competitive advantage over competitors that did not have access to cloud computing services. This study also revealed that cloud computing resulted in cost reductions for Nairobi's small and medium-sized firms (SMEs). This was because cloud services were provided by a third party for cheaper capital expenditures than legacy systems, which might be more expensive and less effective. One thing is certain in each of the three case studies examined: money was saved. Organizations that embrace cloud computing now, when remote tasks are required, stand to earn significantly in

12 The security of data kept in the cloud is determined by the precautions taken. As a result, if stringent security approaches are not established, the safety of the SMEs' data is greatly reduced, and the entire organization risks losing data and halting operations, neither of which bodes well for a business hoping to remain effectively operational during the pandemic. Similarly to Otuka's (2014:36) research, Jagli's (2017:62) research demonstrates that cloud computing service providers are increasingly being targeted by hackers and infiltrators. This challenge demonstrates that when evaluating service providers, small and medium-sized organizations (SMEs) must ensure that the systems are safe enough to ensure the protection of their organization's data. Another potential impediment is the fear of dishonest service providers. Dishonest service providers might possibly obtain access to confidential corporate data and sell it to a third party without the leasing firm's awareness. There have been reports of service providers attempting to profit by unlawfully accessing and selling their clients' data without their knowledge or consent. When a corporation's plans are leaked to a competitor, the company bears the effects of unhealthy competition, in which one small or medium-sized organization (SME) may act on unlawfully obtained material. As a result, SMEs should ensure that the cloud computing service providers they engage with are trustworthy and responsible enough to avoid such unethical acts. The bulk of the studies evaluated expressed worries about data security and safety. This is congruent with the findings of a research conducted by Wainaina (2013:23) in the United States, the United Kingdom, Germany, India, Canada, and Japan on the reasons why organizations are sluggish to adopt cloud computing. Concerns about cloud computing's inherent vulnerability were recognized as the most significant obstacle to adoption by over half of the executives polled. These findings should act as a wake-up call to service providers, causing them to

15 Sampling Techniques Small- and medium-sized enterprises (SMEs) from the KPMG Top 100 2015 list were selected using a sampling strategy that ensured active cloud computing participation. Purposeful sampling allowed for the incorporation of SMEs that aligned with the study objective, allowing for a deeper understanding of cloud computing adoption among relevant businesses. Methods of collecting data To gather vital information, a cross-sectional survey was conducted among the chosen SMEs. Participants were able to discuss their cloud computing adoption experiences and perspectives as a result of qualitative data collection techniques incorporated into the study. By responding to open-ended queries, respondents may elaborate on their decision-making processes, problems encountered, and perceived rewards. Data Analysis and Presentation Descriptive analysis was used to investigate the relationship between variables and provide a detailed summary of the findings. From the qualitative data, patterns and themes were derived, providing a deeper understanding of the complexities associated with the use of cloud computing by SMEs. The purpose of the data analysis procedure was to produce coherent and comprehensible findings, enabling a meaningful interpretation of the study's findings. Population distribution Industry Population Percentage of the Population Manufacturing 11 31% Services 9 26% Retail 5 14% Logistics 3 9% Information technology 5 14% Others 2 6% Total 35 100%

18 an efficient and effective method of gathering information in a short period of time. The questionnaire was divided into five sections and included both closed and open-ended questions.  In the first segment, demographic information was collected from respondents.  The second section explored the factors that contribute to the adoption of cloud computing by SMBs.  The final session centered on SME cloud computing market entry strategies.  The fourth component gathered data on the benefits of adopting cloud computing for SMBs.  The fifth section addressed the obstacles that small and medium-sized enterprises face when employing cloud computing. The respondents' levels of agreement were measured on a 4-point Likert scale ranging from "strongly agree" to "strongly disagree." Methodologies of Conducting Research: With 5% of the respondents, including the researcher's colleagues and a representative sample, a pilot test was conducted. The purpose of the pilot test was to evaluate the questionnaires' thoroughness, precision, accuracy, and clarity. This ensured that the data collection method was trustworthy and error-free. With the assistance of a certified research assistant, the researcher personally administered the questionnaire after scrutinizing and completing it. To increase response rates, each questionnaire was accompanied by a personalized cover letter, and follow-ups were conducted. In average, each test required eight minutes to complete.

21 Gender Distribution Male Female Figure 1: Gender Distribution. Age Group This section is intended to determine the age distribution of respondents. 47% of respondents were between the ages of 26 and 33, according to the results of the survey. In addition, as shown in the graph below, 23% of respondents were aged 34 to 41, 16% were aged 18 to 25, and 14% were aged 42 and older. The age distribution provides valuable information about the demographic composition of the sample. This demographic was well-represented in the survey, as the plurality of responses are between the ages of 26 and 33. In addition, the participation of respondents from multiple age groups permits a comprehensive examination of how various age cohorts perceive and interact with the topic under investigation. This information contributes to a greater comprehension of the research findings and their potential repercussions for various age groups.

22 1 8 -2 5 Year s 2 6 -3 3 Year s 3 4 -4 1 Year s 4 2 Year s an ab o v e 16% 47% 23% 14% Age group. Age group. Figure 2: Age group. Highest Professional Qualification The purpose of this part is to determine the respondents' highest professional credentials. The distribution of respondents' greatest professional credentials, according to the survey findings, is as follows:  61% of respondents held an undergraduate degree.  22% of respondents held a master's degree.  16% of those polled held a diploma.  Only 2% of those polled had a PhD. The distribution of respondents' highest credentials provides valuable information about the educational background of the sample. The majority of respondents held bachelor's degrees,

23 indicating a sizeable population with a foundational level of higher education. In addition, the prevalence of master's and doctoral degree holders reveals a subset of respondents with advanced degrees. Understanding the distribution of respondents' professional credentials enables a comprehensive examination of the study's findings, given that respondents' diverse educational backgrounds may influence their perspectives and attitudes regarding the research issue. This material contributes to a thorough understanding of the research findings and their potential certification-level implications: D i p l o m a U n d er g r ad u at e Mast er s P h d 16% 61% 22% 2% Highest professional qualification. Highest professional qualification. Figure 3: Highest professional qualification. Position in the Company This section endeavors to determine how respondents are ranked within their respective organizations. Following is a summary of respondents' positions based on the results of the survey:

24  33% of responders were operational personnel.  27% of respondents worked in middle management.  22% of respondents were business proprietors or entrepreneurs.  11% of respondents worked in upper management.  6% of respondents worked in business development.  2% of those polled were CEOs. The distribution of respondents' positions within the company provides valuable information about the sample's organizational hierarchy. The presence of operational employees, middle-level management, and senior management suggests that all levels of authority within the organization are represented. In addition, the high proportion of business proprietors and entrepreneurs emphasizes their participation in the study, which may have implications for decision-making processes related to the research issue. Analyzing the organizational roles of respondents provides a comprehensive understanding of how various organizational responsibilities may influence perceptions of the study issue. Different positions within the organization may result in varying degrees of exposure to cloud computing and authority over its adoption and deployment. This information enhances the findings of the study and permits a more in-depth examination of the potential influence of position within the organization on attitudes and perceptions regarding cloud computing adoption. Position Frequency Percent Entrepreneur/owner 14 22 Top management 7 11 Middle level management 17 27

25 Operational staff 21 33 Business development manager 4 6 CEO 1 2 Total 64 100 Figure 4:Position in the company. Company's Sector This section focuses on determining the distribution of businesses across various industries. The following is a categorization of companies by industry based on the findings of the research:  Manufacturing accounts about 53% of all businesses.  The service sector employs 33% of the workforce.  The information technology industry employs 5% of the workforce.  The inertial industry employs 5% of the workforce.  The logistics industry employs 3% of the workforce.  The media industry accounts for 2% of all businesses. The distribution of businesses across industries provides valuable insight into the industrial composition of the sample. The significant number of firms in the manufacturing sector indicates that this industry is well-represented in the research. In addition, the participation of businesses from various industries, such as service, information technology, inertial, logistics, and media, demonstrates the variety of businesses involved in the research. Sector Frequency Percent (%) Service 21 33 Manufacturing 34 53 Logistics 2 3

26 Information technology 3 5 Retail 3 5 Media 1 2 Total 64 100 Company Engagement in Cloud Computing Operations This section aims to determine the extent to which enterprises participate in cloud computing. According to the results of the survey, the following companies are involved in cloud computing:  The majority of businesses (83%) have cloud computing activities.  17% of the organizations have no cloud computing activities. The distribution of organizations' involvement in cloud computing activities provides valuable insights into the level of adoption and utilization of cloud computing technologies among the sample. The large number of organizations that engage in cloud computing operations (83%) indicates a significant presence of cloud technology in the business practices of the respondents. In addition, the presence of businesses (17%) that had not participated in cloud computing activities suggests that some organizations have yet to investigate or implement cloud-based solutions.

27 Company engagement in international operations YES NO Length of Company Existence This section explains how to calculate the distribution of a company based on its duration of existence. According to the findings of the investigation, the following companies are categorized by their length of existence:  45% of the businesses had been in operation for more than 15 years.  23% of the businesses had been in operation for 5-10 years.  19% of the businesses had been in operation for less than 5 years.  13% of the businesses had been in operation for 11-15 years. The distribution of businesses according to their years in operation provides useful information regarding the longevity and experience of the sample. The plurality of enterprises (45%) in the study that have existed for more than 15 years are well-established organizations. In addition, the

28 presence of businesses with varying durations of existence (5-10 years, less than 5 years, and 11- 15 years) demonstrates the presence of a diverse range of businesses with varying degrees of market experience. Existence Frequency Percent Less than 5 years 12 19 5-10 years 15 23 11-15 years 8 13 More than 15 years 29 45 Total 64 100 Number of Employees in the Company The purpose of this section is to calculate the distribution of businesses depending on the number of employees they have. According to the survey findings, the following firms are classified depending on the number of employees:  The majority of companies (61%) had at least 30 employees.  Thirty percent of enterprises had 11 to 20 employees.  9% of enterprises had two to ten employees. The distribution of businesses by employee count provides relevant information about the sample's workforce size. The majority of organizations in the study (61%) with 30 or more employees indicate a significant representation of larger businesses. In addition, the existence of businesses with diverse workforce sizes (11-20 employees and 2-10 employees) demonstrates the existence of a variety of businesses with differing workforce sizes. Number of Employees Frequency Percent

29 2 to 10 19 30 11 to 20 6 9 30 and above 39 61 Total 64 100 Descriptive Analysis of Study Variables This section presents the descriptive outcomes in relation to the objectives. Motivating factors affecting SMEs' use of cloud computing The goal of this research is to discover the characteristics that inspire SME Cloud computing adoption. According to Table 4.6, the majority of respondents (40%) feel that an entrepreneur's talents and expertise advance a company into the cloud computing industry.44% of respondents strongly agreed that opportunity recognition influenced cloud computing. 47% of respondents are motivated to use the cloud because of the availability of resources.50% of respondents stated that the company's technology and people capabilities assist small and medium-sized businesses to use cloud computing. 45% of respondents stated that the company's robust networks affected the SME market's adoption of Cloud computing. 38% of respondents said the Kenyan environment affected their first forays into cloud computing. A competitive climate, according to 48% of respondents, also promoted cloud computing. Furthermore, fifty percent of respondents stated that advantageous trade tariffs and import rules in other countries encouraged SMBs to embrace Cloud computing. 45 percent of respondents thought that ready demand for products on global marketplaces pushed SMBs to use Cloud computing. Motivating factors affecting SMEs' use of cloud computing. Motivating Factors Strongly Disagree Disagre e (%) Neutra l (%) Agree (%) Strongly Agree

30 (%) (%) As a consequence of the entrepreneur's skills and desire, the company has expanded into new worldwide markets.. 2 0 30 40 28 The concept of opportunity is a driving force behind cloud computing.. 0 3 9 43 44 The urge to travel across the world rises in tandem with the availability of necessary resources.. 3 3 8 47 39 The company's long-standing partnerships supported its cloud computing growth.. 5 3 8 45 39 Kenya served as a source of inspiration for early worldwide entrepreneurial endeavors. 0 9 36 38 17 Advancements in Technology fuels cloud computing adoption 3 2 13 48 34 Countries with more open trade policies encouraged international expansion.. 2 5 16 50 28 The high demand for these goods in other countries encouraged the development of cloud computing. 0 3 9 45 42 Table 2: Motivating factors leading to cloud computing Market strategy was applied in the company's SME's adoption of cloud computing .

31 The study was designed to assess the market strategy followed in the company's adoption of Cloud computing. According to the survey findings, 59% of the organizations chose exporting as a market entrance strategy. Joint ventures were used by 16% of the companies. Strategic partnerships were employed by 14% of respondents. As seen in the chart below, 8% utilized completely owned subsidiaries and 3% used licensing. Market approach employed in the company's SME's adoption of Cloud computing Strategy Used Frequency Percent Exporting 38 59 Licensing 2 3 Wholly owned subsidiaries 5 8 Joint ventures 10 16 Strategic alliances 9 14 Total 64 100 The Benefits of Cloud Computing Adoption by SMEs The purpose of this study is to determine the level of respondents' familiarity with the variable concerning the advantages of SME adoption of Cloud computing. The substantial majority of respondents (69%) strongly agreed that increased earnings are an advantage of cloud computing, as shown in Table 4.8. In cloud computing, 72 percent of respondents firmly concurred that the firm benefited from the availability of new markets. According to 38% of respondents, human and social capital are developed as a consequence of SME adoption of Cloud computing. 47% of respondents believed that cloud computing contributed to domestic economic growth. 52% of respondents believed that the adoption of Cloud computing by SMBs in international markets is a driver of economic growth. The Benefits of Cloud Computing Adoption by SMEs. Benefits of adoption of Cloud computing by SME’s Strongly Disagree Disagre e (%) Neutra l (%) Agre e (%) Strongly Agree

32 (%) (%) Cloud computing reduces the amount of money that small and medium-sized enterprises (SMEs) must invest initially in hardware and software infrastructure. They can instead use a pay-as-you-go model, where they only pay for the resources and services they actually consume. This reduces capital expenditures and increases budget predictability. 2 3 8 19 69 Scalability: Because cloud services are extremely scalable, SMEs may rapidly alter their computer capacity in response to demand. This adaptability enables them to manage changes in workload or seasonal increases without overprovisioning resources. 0 2 2 25 72 Cloud computing provides SMBs with the ability to access their data, applications, and services from any Internet-connected location. This flexibility enables employees to work remotely and effectively collaborate, fostering a more dynamic and 2 3 27 38 31

33 productive work environment. Cloud companies frequently offer comprehensive data backup and disaster recovery options, which can be crucial for small and medium-sized enterprises with limited resources. It ensures that vital business data is protected and can be quickly restored in the event of data loss or system failure. 0 2 20 47 31 Security: Reputable cloud service providers invest heavily in cybersecurity and employ professional teams to protect client data. Frequently, these service providers have more advanced security measures and resources than a single SMB could afford to implement on its own. 0 0 19 52 30 Figure 5: Benefits of adoption of Cloud computing by SME’s Barriers to adoption of Cloud computing by SME’s. The purpose of this study is to determine the level of respondents' familiarity with the variable that influences the barriers to SME Cloud computing adoption. The majority of respondents (44%) agreed that price-based restrictions inhibit cloud computing, as shown in Table 4.9. According to 45% of respondents, non-tariff restrictions hinder cloud computing. 33% of respondents believe that cultural distinctions between their own country and the cloud computing

34 environment pose a barrier. According to 47% of respondents, strong local and international competition is an obstacle to cloud computing. 58% of respondents believed that political and legal barriers prohibit the adoption of cloud computing. Barriers to adoption of Cloud computing by SME’s Barriers to adoption of Cloud computing by SME’s Strongly Disagree (%) Disagre e (%) Neutra l (%) Agre e (%) Strongly Agree (%) SMBs may be concerned about the dependability and interruptions of cloud services due to their limited resources. Downtime and service disruptions may have a particularly negative impact on small enterprises that rely largely on continuous access to their apps and data. 0 16 19 44 22 Internet connectivity: Access to cloud services requires a connection to the internet that is both reliable and quick. It may be difficult for SMBs in certain regions or rural areas to acquire high- quality internet connections, making cloud adoption less feasible. 0 14 45 33 8 Lack of IT Knowledge: Many small and medium-sized enterprises (SMEs) lack specialized IT teams or in-house 6 20 30 33 11

35 professionals with the necessary skills to effectively administer and troubleshoot cloud infrastructure. As a consequence, cloud environments may be perceived as lacking control and confidence. Concerns Regarding Data Transfer and Migration Transferring massive amounts of data to the cloud could be time-consuming and difficult. Small and medium-sized enterprises (SMEs) may be concerned about the data migration procedure and the potential for data loss during the relocation. 0 13 25 47 16 The belief that cloud computing is complex and difficult to adopt may discourage some SMBs from investigating cloud solutions, especially if they are oblivious of the potential benefits. 0 9 20 58 13 Figure 6: Barriers to adoption of cloud computing Inferential analysis of study variables .

36 Reliability Analysis The aggregate Cronbach's alpha reliability coefficient was calculated for the 9 items comprising the Motivating factors for cloud computing, the 5 items comprising the Benefits of cloud computing adoption by SME's, and the 5 items comprising the Barriers to cloud computing adoption. As shown in the table below, the reliability results of 0.829, 0.704, and 0.714 were all greater than the acceptable threshold of 0.7. Reliability Analysis Variable Number of items Cronbach's Alpha Reasons for adopting cloud computing. 9 0.829 The Benefits of Cloud computing in Business 5 0.704 Cloud computing Limitations 5 0.714 Correlation The correlations between variables are displayed in the following table. Barriers to SME adoption of cloud computing were found to be significantly and positively related to Motivating variables (r = 0.327, p = 0.001). Motivating variables were found to be significantly and positively associated with the benefits of cloud computing (r = 0.61, p = 0.000). Barriers to SME adoption of cloud computing were positively and insignificantly correlated with Cloud Computing Benefits (r = 0.198, p-value = 0.122). Correlations Variables Motivating factors Barriers to adopting cloud computing by SME’s Benefits to adopting cloud computing by SME’s Pearson 1 .327** .616**

37 Motivating factors Correlation Sig. (2-tailed) .009 .000 N 62 62 62 Barriers to adopting cloud computing Pearson Correlation .327** 1 .198 Sig. (2-tailed) .009 .122 N 62 62 62 Advantages of Using Cloud Computing Pearson Correlation .616** .198 1 Sig. (2-tailed) .000 .122 N 62 62 62 **. Correlation is significant at the 0.01 level (2-tailed). Chapter Summary SMBs are motivated to enter cloud computing markets by knowledge of people and technology, favorable trade tariffs, a competitive local environment, the availability of resources, the recognition of opportunities, the existence of a ready market, and the strength of their networks. Exporting is the most prevalent market entry strategy, whereas licensing is the least prevalent. It has been demonstrated that cloud computing provides benefits such as the availability of new markets, increased income, and domestic and international economic growth. For small and medium-sized businesses, cloud computing is hindered by pricing restrictions, intense local and global competition, diverse cultures, and political and legal obstacles. Non-tariff barriers were not regarded as an impediment to the adoption of cloud computing. The variables of this investigation were found to be significantly and positively related.

38 CHAPTER FIVE DISCUSSION, CONCLUSION AND RECOMMENDATIONS Introduction This chapter compares the findings of the cloud computing evaluation for small and medium- sized businesses to those of the literature review in light of the specific study objectives. The overview, recommendations, and conclusions of the study are founded on a discussion of each research objective. Summary The goal of this research was to evaluate the cloud computing of SME's in the Top 100 Mid- sized Enterprises in 2015. The following research objectives led the Study: 1. To identify the motivators that drive SME cloud computing adoption. 2. To identify SME market entrance tactics in cloud computing. 3. To demonstrate the benefits of cloud computing to SMEs. 4. To identify the hurdles to SME adoption of cloud computing. This study used descriptive research. 104 Nairobi-based Top 100 cloud computing enterprises were sampled. Hand-delivered surveys collected primary data. The research tools were tested in a pilot study. After collection, coding, and alteration, SPSS analyzed the data. Calculations using frequency distribution and percentages. Data evaluation included inferential statistics and correlation. Figures and tables summarized the findings. According to the survey, many organizations adopt cloud computing because they have strong entrepreneurial abilities, the capacity to predict possibilities, and access to crucial resources and technological competence. Competitive corporate environments, powerful networks, and

39 advantageous international trade tariffs stimulate cloud computing growth. The Kenyan environment was key to boosting cloud computing adoption. The proposals stressed the significance of using entrepreneurial skills to increase revenues while avoiding risks and costs. Most companies enter markets via exporting, while some use joint ventures, strategic alliances, wholly-owned subsidiaries, and licensing. A market entrance approach that increases market access, removes risks, and lowers cloud computing expenses is recommended. Cloud computing increases income, market access, and human and social capital, according to the report. Cloud computing boosts economic growth worldwide. The idea advises that SMEs use cloud computing services to enhance their market reach and provide excellent customer service. Cloud computing faced economic limits, cultural barriers, fierce internal and international rivalry, and political and legal issues, according to the report. Non-tariff barriers were ineffective. Remote workforce, market-embracing leadership, and reliable cloud computing suppliers are some ways to overcome these challenges. To understand how cloud computing adoption differs among sectors, future study should focus on manufacturing or services approaches. In addition, studying market entrance tactics and cloud computing performance may help optimize and expand. Discussion Factors Influencing SME Cloud Computing Motivation Entrepreneurs' expertise helps organizations embrace cloud computing services. 40% of respondents stated that entrepreneur skill is essential to business survival. To reduce cloud computing risks, scholars recommend an entrepreneurial attitude (Güldogan and Sun, 2023:45).

40 Experience teaches entrepreneurs business skills, expertise, and relationships (Winkler et al., 2023:78). Cloud computing also requires opportunity recognition. 44% agreed that identifying and chasing untapped possibilities in overseas markets drives their interest in cloud computing. Entrepreneurs seek local and cloud computing potential (das Neves, 2022:23). Resource availability also favors cloud computing. 47% of respondents said firms utilize cloud computing to take advantage of lower labor, manufacturing overhead, and raw material prices in other countries (Hirsch et al., 2010). A growing firm gains resources, economies of scale, and capacity, making cloud computing easier (Moss et al., 2021:49). The survey found that strong networks and inter-organizational linkages motivate cloud computing adoption (45%). Network models help entrepreneurs identify possibilities and build a reputation, which often leads to strategic alliances with foreign companies (Salamzadeh et al., 2022:72). The local residential environment affects a company's cloud computing adoption. 48% said competition is important, while 38% said the Kenyan environment affects cloud computing adoption. Seaports, airports, and local rivals can influence a company's overseas market entry (Karanki and Lim, 2023:63). 50% agreed that international taxes and import controls boost cloud computing. Export marketing methods may change due to lower import taxes and flexible product limits on overseas marketplaces (Gereffi et al., 2021:44). Finally, 49% agreed that unsolicited overseas orders may inspire enterprises to join international marketplaces. Unique product designs, quality, or innovation attract non-target buyers.

41 In conclusion, entrepreneurial skills and expertise, opportunity recognition, access to resources, powerful networks, and favorable international market circumstances motivate SMEs to use cloud computing services for market entrance and expansion. Strategies for Entering a Market Cloud computing requires a market entrance strategy for US companies (Alsharari, 2022:73). 59% of companies enter markets via exporting. Exporting is risk-free and convenient. Indirect exporting is used for low-effort or low-sales products. Direct exporting involves overseas sales. US exports dominate this category. Strategic alliances and joint ventures are also popular due to their versatility and ease of international commerce. 3% of respondents preferred licensing. Most licensing agreements require the licensor to transfer intellectual property rights to the licensee in exchange for royalties (Contreras, 2020:43). Small and medium-sized enterprises (SMEs) in the study prefer direct market entry to build consumer trust and maintain production control before licensing to expand into international markets. Economic integration, especially in North America and other trading blocs, supports a more direct approach. This survey has 8% totally owned subsidiaries. This strategy gives local production and full operational control, including output and quality (Contreras, 2020:83). Companies seeking to retain the host country's identity may purchase a local firm with a market-appropriate product line. 14% of companies employ strategic partnerships, showing a close engagement with joint ventures. Joint ventures are contractual agreements in which two or more partners collaborate and leverage each other's resources and skills to penetrate worldwide markets (Nippa and Reuer,

42 2019:54). Strategic relationships help SMEs enter foreign markets faster, but they're riskier. Thus, strategic alliances are often explored when a corporate wants a local firm to do duties that would be too expensive to do alone. Cloud computing's advantages in the United States: Cloud computing boosts earnings and opens new markets for US enterprises. Cloud computing may help firms make more money than on the local market if planned and performed appropriately. Research suggests cloud computing may boost sales and creativity. Cloud computing saves money in domestic and international markets. Businesses gain from economies of scale and lower domestic market limitations. Philip Morris has targeted sales in emerging nations to offset growing government laws and shifting customer views. Combining domestic and foreign sales reduces costs and increases income. Corporations find new technology through joint ventures and strategic alliances. Cloud computing also promotes resource synergies and diversity, minimizing risks and speeding market entrance. Cloud computing allows corporations to adjust their branding to the host country's CSR objectives. CSR initiatives improve a company's image, assist recruit and retain employees, and boost local and worldwide economic growth. Obstacles to cloud computing in the United States: Price prevents 44% of organizations from using cloud computing. Smaller companies may struggle to fund cloud computing projects. Market entry costs include transport, storage, advertising, legal fees, and permit acquisition. Laws, rules, and bureaucratic red tape do not prevent cloud computing in the US. Exchange rates affect international business.

43 Cloud computing does not face cultural barriers. The top 100 medium-sized enterprises adapt their strategies, structures, processes, people, talents, common values, and management styles to domestic and international markets. Cloud computing succeeds with this alignment. 47% of organizations avoid cloud computing because of foreign competition when entering a new market. However, foreign market companies who understand customer culture can overcome this challenge. Political and legal issues hindered cloud computing for most responders. "Buy national" sentiment and government subsidies and quotas can hinder international market penetration. Cloud computing is also discouraged by the unpredictability of corporation and customer protection requirements. Political regimes foster or stifle business and long-term economic progress. Lax international trade rules may make markets less welcoming to foreigners. Conclusion Factors Motivating Cloud Computing in the United States: Small and medium-sized businesses (SMEs) in the United States are engaging in cloud computing for a variety of reasons. The skills and knowledge of entrepreneurs are essential for convincing enterprises to use cloud computing services. The talents of entrepreneur’s aid in recognizing and capitalizing on opportunities. Access to internal and external resources, such as basic materials and labor in other markets, can help reduce operational expenses and boost revenue. In addition, a company's human and technological competencies, as well as its alliances and networks, have a substantial impact on its potential to access the cloud computing services market. SME adoption of cloud computing is influenced by a competitive business climate, enticing trade barriers, and an available market. However, the local climate in the United States is not considered a major factor in cloud computing.

44 United States market entry strategy for cloud computing: As with companies in other nations, U.S. firms in the cloud computing industry choose exporting as their market entry strategy. This preference may be explained by the fact that the manufacturing industry employs 53% of all businesses. Other market entry strategies include joint ventures, strategic alliances, and wholly-owned subsidiaries, with licensing used the least due to concerns regarding future competition or subversion. Cloud computing's advantages in the United States: Cloud computing grants American businesses access to new international markets, resulting in increased profits both locally and internationally. In addition to contributing to economic development in their home country, these corporations' international operations also promote economic growth in other nations. On the other hand, human and social capital is regarded as the least significant advantage of cloud computing. Obstacles to cloud computing in the United States: In the United States, SMEs view price-based restrictions such as quotas and subsidies as obstacles to cloud computing. Different cultures in the United States and other countries may hinder cloud computing. In addition, significant local and international competition, as well as political and regulatory obstacles, pose substantial obstacles to the adoption of cloud computing. Non-tariff barriers were deemed neutral in this analysis, presumably as a result of the presence of large trading blocs and advantageous trade relations between nations, such as NAFTA and agreements with other regions. Recommendations for Increasing the Adoption of Cloud Computing in the United States: SME's in the United States can increase their use of cloud computing by leveraging the skills and expertise of entrepreneurs to identify and seize opportunities. Utilizing available resources in

45 international markets can reduce costs and increase profitability. Companies should select the market entry strategy that best suits their product, brand, and production control requirements. Utilizing technology to emphasize client retention and long-term relationships can contribute to the United States' and other markets' economic sustainability. Corporate Social Responsibility (CSR) activities that are emphasized may also increase brand visibility and market confidence. Small- and medium-sized enterprises in the United States should consider adopting a more global strategy from the outset in order to capitalize on the convenience of conducting business anywhere in the world. Being "Born Global" or having International New Ventures (INVs) from the beginning could create opportunities for cloud computing services. Recommendations for Future Research: Future research in the United States should focus on specific industries, such as manufacturing or services, to gain a deeper comprehension of their adoption trends of cloud computing. Examining the relationship between market entry strategies and cloud computing success in the United States could provide valuable insights for optimizing market expansion efforts.

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