This research paper aimed to evaluate the environmental factors that influence Small and Medium Enterprises (SMEs) in Uganda to adopt cloud computing. It employed a descriptive and explanatory research design utilized a quantitative approach—and obtained data from 416 SMEs in Kampala, Uganda. A very weak, negative monotonic correlation between environmental factors and cloud computing adoption decisions (rs = -.071, n = 307, p>.001) was found, implying that environmental factors contribute to the adoption of cloud computing in SMEs in Kampala, Uganda from an indirect perspective but primarily for the intentions of having a competitive edge in the business market.