Abstract: Educational institutions continue to struggle to optimize the budget with regards to managing their computing resources. Cloud computing technology is an emerging new computing paradigm for delivering computing services for all sectors of the economy including educational institutions. Cloud computing approach relies on a number of existing technologies, e.g., the Internet, virtualization, grid computing, Web services, etc. The key benefits cloud computing technology brings in educational context are: reducing the startup costs, increasing the information visibility, improving IT management, enhancing the inter-institution collaboration and integration, and reducing response times. Both quantitative and qualitative approaches were adopted in this study. The findings suggest that relative advantage, complexity, technological readiness, and top management support, are significantly affecting adoption of cloud computing in Saudi Higher Education System.