ITx Rutherford 2019 Programme

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The ITx Rutherford 2019 Programme may change without notice

Adoption of Cloud Computing by SMEs: Revisiting the Risks and Benefits

Wednesday 12:20pm - 12:50pm, CITRENZ (Ara Room 3)

The concept of cloud computing signals a major change in the way users store, access, and use information (Atkins, 2015, para 6) in that data can be hosted in the “cloud” which has been described as being a “nebulous assemblage of computers and servers accessed via the internet” (Miller, 2009, p1). The adoption of cloud based accounting systems has seen a number of benefits.

Firstly, the saving comes from reduced costs from the service providers having to maintain only a single, centrally hosted, software (Gill, 2015). This single software is then used by multiple subscribers, instead of the traditional way of supporting clients separately and individually (Gill, 2015). The second saving comes from the clients themselves not having to spend a substantial cost upfront for purchasing end user product of an industrial scale (Gill, 2015) as clients pay a much smaller subscription fee (Gill, 2015).

The purpose of this paper is to present an analysis of the experiences of seven (7) small and medium-sized enterprises (SMEs) that have adopted a cloud-based accounting system (Xero). This includes an exploration of the reasons for adopting a cloud-based accounting system and the benefits and risks associated with using a cloud-based accounting system.


Trevor Nesbit

Ara Institute of Canterbury