Factors Affecting the Adoption of Software as a Service in South African Small Medium Enterprises

Abstract

Software as a Service (SaaS) seems to be the most attractive solution among cloud services, but there is a low adoption rate among South African Small Medium Enterprises (SMEs). The aim of this study was to investigate the significant factors hindering the adoption of SaaS among South African SMEs. The study adopted Diffusion of Innovation Theory (DOI) as a theoretical basis. Data was collected through questionnaires and analyzed using regression analysis. The study findings indicate that some SMEs have not used SaaS because they have never heard of it. But may consider SaaS solutions if it reduces the organization's IT expenditure. For those considering using SaaS, complexity and cost of SaaS were the most significant factors determining their potential for the adoption.