Abstract
In the recent decades, with the introduction of new technologies, the use of internet and E-business, the economic, political and social factors have changed the ways businesses are conducted. New technologies have made it easy for all enterprises, either big, or medium or small to fulfil their tasks easily and to achieve in a more efficient way
Cloud computing has emerged as one of the most discussed topics among the enterprises IT professionals. Cloud computing impacts every aspect of IT and in particular it affects IT users, administrators, operators, purchasers and developers. Moreover, large organizations have benefited from the cloud on a multitude of levels and have improved the way they work dramatically. SMEs, are not different from other organizations using the Cloud regardless their size and outreach, they also want to benefit from its amazing attributes such as cost reduction, rapid customer response capability and balance sheet improvement, in addition to facilitated compliance with laws and regulations. Nonetheless despite these advantages, there are few challenges that are faced by SMEs discouraging them from using the cloud computing; for instance absence of legislative framework that directly regulate the cloud or its service providers or customers. It is crucial for the organizations and in particular SMEs seeking to utilize cloud services that a legal infrastructure should be put to understand the issues and challenges facing the SMEs.