LITERATURE REVIEW Cloud computing refers to both the applications provided as a service over the Internet and the system hardware and software in the data centers that provide these services ( Armbrust et al, 2009). Some authors even refer to cloud computing as a new paradigm and emerging technology that flexibly offers computing resources and services over the Internet (Fenn et al. 2008). Cloud computing technology has three main service models, including software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). Depending on usage, cloud computing technology can be grouped into four categories. These are private cloud, community cloud, public cloud and hybrid cloud (Mell & Grance, 2011). Cloud computing is therefore considered the best alternative to meet the challenge faced by SMEs in the adoption of technological innovations (Rio-Belver et al, 2012). . However, small businesses are slow to respond to ICT adoption (Houghton and Winklhofer). This is largely due to the high costs and security risks associated with their investment. SMEs prefer low-cost alternatives that produce competitive advantage (Bayrak, 2013). The related study by Gaofeng and Jing (2010) indicates how public cloud computing infrastructure could be used at low cost, low technical barriers and high diversity with multimedia technology. Another study by Kaufman (2010) explained the security and privacy issues of public cloud and mentioned that due to thwarted attacks in public clouds, many organizations ultimately have to move traditional perimeter security approaches to machines private virtual. Ramgovind et al. (2010) describes the different types of cloud, services (Iaa...... middle of article ......ch: Planning and Design. 8 ed. New Jersey: Pearson Prentice Hall.MELL, P ., & GRANCE, T. 2011. The NIST definition of Cloud Computing (draft) (MD 20899-8930: National Institute of Standards and Technology United States Department of Commerce. PETRAKOU, A., BRANDT, P., GUSTAVSSON). , R. , & JOKELA, P. 2011. Collaborative e-marketplaces containing SME clusters: drivers and barriers in the local food sector In: 44th Hawaii International Conference on Systems Sciences (HICSS) [Online] / 04/01].RAMGOVIND.S, EM, & SMITH.E. 2010. Managing security in cloud computing Information Security for South Africa (ISSA), 1:1-7.RIO- BELVER, R., CILLERUELO, E., GARECHANA, G., GAVILANES, J. and ZABALZA J. 2012 “New management models based on cloud computing”, in Business and Management 2012. Vilnius: Lithuania.