Critical Factors of Cloud Computing Adoption in Organizations: An Empirical Study

Abstract

Using extended Technology Acceptance Model (TAM), this study attempts to assess empirically crucial factors affecting cloud computing adoption intentions. It explores security, availability and compliance-related challenges in cloud computing and makes the necessary recommendation which can help to mitigate the risk in cloud computing. A framework was developed to test the effect of security, availability of cloud service provider and compliance-related factors on cloud computing adoption intentions mediated by perceived ease of use (PEOU) and perceived usefulness (PU). A questionnaire for the factors was developed to collect the data from 280 companies in information technology, manufacturing and finance sectors in India. The data was analyzed using exploratory and confirmatory factor analyses. Further, structural equation modelling using AMOS 20.0 was used to test the proposed model. The empirical results show that cloud computing adoption intention is determined by PU and PEOU. Further, PU is found to be significantly influenced by PEOU. Risk as well as availability and support are found to be significant on PEOU. In addition, threat, risk, vulnerability and compliance are found to be significant on PU. The model can be used as a guideline to ensure a positive outcome of the cloud computing adoption in organizations. The findings offer cloud computing users with a better understanding of how security, availability of cloud service provider and compliance-related factors affect cloud computing adoption intentions. It also provides relevant recommendations to achieve conducive implementation environment for cloud computing adoption. This study is an attempt to explore and develop model for cloud computing adoption intentions that was theoretically grounded in the TAM.