This proposal seeks to understand how the local industry perceives and practices cloud computing in the UAE (United Arab Emirates) context. Despite global interest of cloud computing, no empirical study has yet examined this growing phenomenon in the UAE. Drawing from an institutional perspective, the proposal argues that the emergence of cloud computing will create isomorphic pressures and eventually urge, if not force, the local industry to reshape its IT service model. A mixed research methodology is proposed to first gain an in-depth understanding of issues faced by local companies and next survey collective perception and practice of cloud computing in the UAE as a whole. Potential implications for practitioners and researchers are discussed.