Cloud Computing is a technology that brings many advantages with it for businesses that adopt it. In times of this recession when companies are resorting to either shutting down or come up with ways to reduce their operating expenditures, Cloud Computing offers Small & Medium Enterprises numerous benefits and a lifeline to stay in business. To validate this proposition, 10 SMEs that switched over to a Cloud Computing IT infrastructure in the last 12 months or less were chosen from various industries. The firms’ executives and decision makers were interviewed in detail about their IT operations before and after the implementation of Cloud Computing. The findings attained from the respondents clearly indicated a sharp reduction in both operating & capital expenses. This was evident by the lessening in the physical space required for the hardware, diminution of the IT staff headcount to monitor the systems, annulment of expenses incurred on software licensing and also for data recovery & systems security. The study clearly indicates that Cloud Computing is of immense importance to SMEs that wish to reduce their running costs yet continue expanding their operations.