Teferi, Dereje (PhD)Bekele, Selamawit2018-11-302023-11-292018-11-302023-11-292014-10http://etd.aau.edu.et/handle/123456789/14725As new technologies become dynamic, changing the way business is undertaken, firms need to make use of these technologies in order to survive in the market. Despite the fact that these technologies offer great opportunities to businesses, their adoption is based on an ad-hoc approach that leads to failure more often than not. Additionally research shows that Adoption of these technologies such as cloud computing is not as expected mainly because most researches focus on the technical aspects leading to inadequate researches on its adoption. Therefore, adoption of cloud computing solutions requires critical investigation, in order to understand its challenges and benefits that it has to offer. The aim of the study is to explore the internal and external factors that have influenced IT executives and expert’s decision on the adoption of cloud computing focusing on the Ethiopian banking sector. A mixed research method utilizing both qualitative and quantitative methodologies was used. Interview was used to gather qualitative data and survey was used to gather quantitative data. Principal Component Analysis (PCA) is used for analysis of the responses. The result indicates that the internal factors: complexity, compatibility, employee skills, risk of failure and external factors: customer demand, external pressure, cost, and consistency of cloud computing were found to have a positive influence on decision to adopt cloud computing. However, the internal factors: organizational infrastructure, firm size, relative advantage and the external factors: competition, government rules, regulations, proclamations, security, cloud vendor’s support, network bandwidth, and availability of cloud services were found not to have an influence on the adoption of cloud computing technologies in Ethiopian banking sector. Based on the findings of the study, cloud computing adopters can focus on the most critical factors, vendors can adjust their services and marketing strategies, researchers can base their study to further investigate and design a framework for cloud computing adoption. Keywords: Cloud Computing, TOE Framework, Ethiopian Banking SectorenCloud ComputingTOE FrameworkEthiopian Banking SeThesis