In Australia, cloud computing is increasingly becoming important especially with the new accessibility provided by the development of the National Broadband Network (NBN). This will give small and medium-sized enterprises (SMEs) opportunities of affordable access to computing resources. Academic studies in investigating the socio- technical issues that might be the reason in influencing the adoption of cloud computing are scant with the consideration of Australian SMEs. To fill the void, a research model was developed based on the diffusion of innovation theory (DOI), the technology- organization-environment (TOE) framework, and unfolding the relevant literature review. Data was collected using mixed methods. The first study was an exploratory study and data was collected from eleven Australian SMEs and four cloud service providers. The second study was a national wide empirical study with 203 Australian SMEs across the country. The findings have two important contributions. First, they extend the existing knowledge of cloud computing adoption by Australian SMEs. Second, they provide SMEs, cloud service providers and policy makers with insights about the determinants of cloud computing adoption useful for planning and making decisions in the adoption of cloud computing. This research followed an exploratory approach in its nature.