Small and medium enterprises (SMEs) play significant economic development and stimulus roles but exert weak growth performance, limited resources, restricted finances, and unable to scale operations. Cloud computing has appeared as a revolutionary technology which can help SMEs to avoid these issues using effective, variable, and perspective IT solutions. The current paper aims to investigate the benefit of cloud computing on SMEs based on the aspect of cost savings on IT infrastructure, flexibility in operation, and business continuity. In an attempt to compare between on-premise and cloud models the paper justifies the value of cloud solution over a period of five years. The paper also focuses on potential efficiencies of cloud computing to provide work from remote locations, teamwork, and digitalization for SMEs, as well as explores the use of cloud-based DR solutions to decrease the amount of downtime. Nonetheless, cloud computing is not without its problems, these include issues to do with; security of data, no technical know-how, and organizational cultures. This paper identifies these barriers and provides suggestions that might assist SMEs in benefitting from cloud solutions for growth, protection, and creativity in the digital economy.