This research aims to examine the effects of cloud computing on the security of data in Omani SMEs by exploring major security concerns, analyzing CSPs’ contributions, reviewing measures already in place, and offering recommendations for enhanced security. This research employs quantitative questionnaires to obtain quantitative data on SMEs and interviews with managers, IT professionals, and CSPs to obtain qualitative data. Conclusions highlight the fact that while Oman SMEs are moving to the cloud as a part of the broader Oman information technology plan, substantial information security risks remain, with few SMEs having sufficient protection and little understanding of legal requirements. CSPs undoubtedly inhabit an important position but they are viewed as somewhat inadequate to mitigate risks threatening SMEs. Therefore, based on the study’s findings, it can be recommended that there is a need to increase the cooperation between SMEs and CSPs, better training, and adequate security measures to guarantee adequate data protection. From these findings, actionable recommendations are derived to assist SMEs in dealing with the diffused issues of cloud security as well as enable them to harness the benefits of cloud solutions appropriately.