A Cloud Computing Framework For Ethiopian Small And Medium Enterprises

Abstract

Nowadays in Ethiopia, there are expansions of ICT infrastructure and services. These technologies are used to access and communicate information and also it closely linked to the economic growth of the country. However, the significance of Information and Communication Technologies (ICT) to the growth of SMEs were not given the required level of attention in the country. Due to this, the adoption of the latest information technology by SMEs in Ethiopia is below the expected level. This research has examined and attempted to address the problem surrounding the low level of adoption and usage of latest information technology in the SMEs sector in Addis Ababa, Ethiopia. Thus, this study was to propose a solution for the problem of low level of utilization of the latest information technology based service through cloud computing technology. The aim of the study was to develop cloud computing framework for Ethiopian SMEs. This research work used the Design Science Research Methodology (DSRM), which is often used to address IT and organizational problems. It also utilized data collected through interviews conducted face-to-face with SMEs managers that used basic ICT for their business operations in Addis Ababa city.The study applied comparative qualitative analysis techniques. Thus, this study indicated that the Ethiopian SMEs have low knowledge to adopt this new technology. The research identified and conclude that cloud computing is the better latest information technology utilization mechanism for SMEs. This is because first it enhances the productivity and effectiveness of certain activities or functions made by SMEs.Second, it enables the wise and strategic use of information technology which significantly reduced cost. Accordingly, the research proposed the implementation of Hybrid Cloud Computing model for SMEs. It expected that the adoption of this model will provide significant contribution to the economic growth of the country. The research further recommended in-depth analysis on multiple dimensions of adopting cloud computing to SMEs sector beyond cost effectiveness and facilitation of their business operation. It also recommended additional study on security architecture of virtual data centers in cloud environment for these SMEs.