Cloud computing is the most evolving concept which has optimized IT performance of SMEs sector without huge cost on infrastructure. It is an on-demand computing service which provides pay per use opportunity to SMEs; this research study is explaining different advantages of cloud computing which motivates SMEs to adopt these services. SMEs do not have large amount of financial and human resources, so they are not able to implement and upgrade advance technologies to increase their business performance. The main purpose of this research study is to explain how SMEs can be benefited by using cloud computing for their businesses and make suggestion about potential disadvantages. A detailed literature review is gathered to discuss basic concepts of cloud computing and its implementation in SMEs. Furthermore, advantages of cloud computing are also discussed by associating with existing theory. A qualitative approach is selected to direct this study by focusing on interpretivism research philosophy. A convenient sampling method is used to choose six SMEs operating in Oulu and other cities in order to gather data. An unstructured questionnaire is used to conduct interviews from IT personals working in these SMEs. Findings of research study suggest that most important factors which leads SMEs towards adoption of cloud computing includes, cost effectiveness, flexibility and scalability in resource utilization, lower technology risk, data security and effective IT support. Some other factors related to service providers has also been identified in this study as well, for instance trust on service providers is considered an important factor while making decision about cloud adoption. Trial-ability of cloud services makes it more convenient for SMEs to implement best suitable services as per their business environment.