On the advantages, perils and pitfalls of using Cloud Computing and Open Source Software in Small and Medium-Sized Businesses. The case of a German entrepreneurial company

Cloud computing (CC) and open source software (OSS) both stand out to be valuable means to address prevailing requirements of small and medium-sized enterprises (SME). For instance, such requirements include their demand for flexibility, scarcity of skills and money, and their operative focus. This paper investigates the case of e-commerce adoption by means of CC and OSS in a venture capital driven entrepreneurial SME in the online retail industry. The case study provides qualitative evidence that some of the commonly asserted value propositions of CC and OSS do not hold true in real application scenarios. For instance, the cost-saving and flexibility aspect, often mentioned with regard to CC, seems to be largely questionable. Even though OSS can help to save money, its pay-off on the scarcity of skills and flexibility requirements of SME is seen to largely prevail.