The use of technology is important for achieving a competitive advantage. Few of the prior literature focuses on the predictor and consequence of the adoption of cloud computing in Small and Medium Enterprises (SMEs). The purpose of this study is to develop a conceptual framework for the predictors and consequences of adopting cloud computing among SMEs in Saudi Arabia. Based on the technology-organization-environmental framework and the resource-based view, this study proposed that the adoption of CC by SMEs in Saudi Arabia will be affected by organizational, technological, and environmental factors. In turn, the adoption of CC will have a positive effect on the organizational performance of SMEs. The population of this study is the SMEs in Saudi Arabia and structural equation modeling is proposed as an analytical tool.