The Impact of Cloud Computing Adoption on Business Efficiency: A Case Study of SMEs in Kano State
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Background of the Study
Cloud computing has revolutionized the way businesses operate by providing scalable, cost-effective, and flexible IT solutions. Small and medium-sized enterprises (SMEs) are increasingly adopting cloud computing to improve operational efficiency, reduce costs, and enhance collaboration. Despite the many benefits of cloud adoption, many SMEs face challenges in integrating these technologies into their existing operations (Salihu & Kalu, 2023). In Kano State, where SMEs play a significant role in the economy, there is limited research on the specific impact of cloud computing adoption on business efficiency.
This study will examine the impact of cloud computing adoption on the operational efficiency of SMEs in Kano State, focusing on areas such as cost savings, productivity, and scalability (Ibrahim & Muhammad, 2024).
Statement of the Problem
Although cloud computing presents significant advantages for SMEs, some businesses in Kano State may struggle with the technical and financial challenges of adopting these technologies. The extent to which cloud adoption affects business efficiency remains unclear in the context of local SMEs (Abubakar & Ibrahim, 2023).
Objectives of the Study
- To assess the impact of cloud computing adoption on the operational efficiency of SMEs in Kano State.
- To evaluate the challenges SMEs face in adopting cloud computing technologies.
- To explore the benefits of cloud computing in terms of cost savings, productivity, and scalability.
Research Questions
- How does the adoption of cloud computing impact the operational efficiency of SMEs in Kano State?
- What challenges do SMEs face in adopting cloud computing?
- What benefits do SMEs experience from cloud computing adoption?
Research Hypotheses
- SMEs in Kano State that adopt cloud computing experience increased operational efficiency.
- The adoption of cloud computing leads to significant cost savings and improved productivity for SMEs in Kano State.
- SMEs that face significant challenges in adopting cloud computing experience lower levels of business efficiency.
Scope and Limitations of the Study
The study will focus on SMEs in Kano State that have adopted cloud computing. Limitations include the difficulty of accessing sensitive operational data and the potential bias in self-reported benefits.
Definitions of Terms
- Cloud Computing: The delivery of computing services, such as storage, processing power, and applications, over the internet (cloud) rather than using local servers.
- Business Efficiency: The ability of a business to optimize its operations, reduce costs, and maximize output.
- Small and Medium-sized Enterprises (SMEs): Businesses that are independently owned and operated and have fewer employees and lower revenue than larger corporations.
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