Abstract:

Small Business Act for Europe pinpoints that small and medium size businesses have the key role in the EU economy. SME policy framework developed in 2008 for EU member states puts special emphasis on ICT technologies. Cloud computing allows to store IT resources including data infrastructure and applications in the internet as “pay-for-use” service offered by one or more providers. Cloud computing can provide various advantages for the SMEs including cost and time saving, flexibility and scalability of the resources, improved cooperation in innovation, better communication with the clients, improved efficiency and other factors. Therefore, the purpose of the research is to evaluate situation with the small and medium size enterprises in Baltic countries and to highlight reasons which are behind managerial choices to use cloud computing for their IT resources. Qualitative research methods i.e. in-depth interviews with cloud experts and managerial authorities of SMEs in Baltic countries were used in this research. Results of the interviews are analysed using technology – organization – environment model which helps to structure favourable and unfavourable conditions for cloud computing in the Baltic countries. Based on opinions of SMEs the research summarises experience with cloud computing technology in Baltic countries as well as reveals potential for the development of cloud computing and main restricting factors for successful implementation of this new solution. The paper analyses main barriers for the successful development of cloud computing taking into account both supply and demand side and other impacting factors and provides solutions on how to overcome those restrictions. The main value of the paper is usage of technology-organization-environment model for the analysis of interview results which allows to reveal justified conclusions about the existing situation and provide implementable recommendations for SMEs regarding cloud computing technology.