Cloud computing as a facilitator of SME entrepreneurship

Abstract

The rapid adoption of Cloud-based information and communication technology (ICT) services reflects a Schumpeterian creative destruction scenario [Schumpeter, J. A. 1942. Capitalism, Socialism and Democracy. New York: Harper & Row], as they increasingly supplant traditional in-house ICT capital investment models [Ross, P. K., and M. Blumenstein. 2012. Leveraging the Opportunities of the Cloud: The Impact of Cloud Computing Strategies on Organisational Structures, Management Practices and ICT Worker Skill Sets in Queensland Private and Public Sector Organisations. Brisbane: Griffith University and the Department of Science, Information, Technology, Innovation and the Arts (SITIA)]. This research examines how Cloud technologies facilitate the development of internationally orientated small- and medium-sized enterprise (SME) entrepreneurship by providing greater access to global markets, lowering opportunity costs and supporting collaboration and innovation in an increasingly connected world. The Cloud computing paradigm also brings associated threats for SMEs, including potential challenges in adapting to Cloud-based and supported business models and increased competition from globally based competitors. Therefore, while Cloud technologies offer a potential boon to SME entrepreneurship, they may also usher in a period of rationalisation, as some firms will inevitably fail to successfully adapt to a globally competitive Cloud environment.

Keywords:

• cloud computing
• entrepreneurship
• SMEs
• innovation
• opportunity costs

Acknowledgements

The authors acknowledge and thank the Queensland Government Department of Science, Information Technology, Innovation and the Arts (SITIA) for their support during this collaborative research.

Notes on contributors

Dr Peter K. Ross is a senior lecturer at the Department of International Business and Asian Studies, Griffith University. He has extensive research experience and expertise in organisational issues related to information and communication technologies (ICTs) and has published many articles in the field. Dr Ross is currently conducting research that examines the impact of Cloud computing technologies on organisational strategies. Prior to this, Dr Ross conducted research into the ICT sectors of Australia and Malaysia. Dr Ross has further conducted extensive research into the privatisation of telecommunications sectors in Australia, New Zealand and Eastern Europe.

Professor Michael Blumenstein is the Head of School, School of Information and Communication Technology, Griffith University. His research interests include the areas of Pattern Recognition and Artificial Intelligence (specifically Machine learning and Neural Networks). He has published over 70 papers in refereed conferences, journals and books in these and related fields.