Abstract: The micro, small and medium scale organizations in India are still in nascent state as far as use of IT systems is concerned, though they play a pivotal role in the overall industrial economy of the country. Further analysis of this problem reveals that there are number of barriers which come in the way of MSMEs adopting to new IT systems. They also lack the financial power required to adopt latest information technology and so cannot grow beyond a certain point. This paper analyses these barriers and discusses possibility of using Cloud Computing as a one stop solution. The barriers faced by MSMEs in adopting latest IT systems are actually enablers for adoption of cloud computing. But then there are other barriers faced by MSMEs in adopting to cloud computing. One main reason for MSMEs to ignore recent developments in information technology is lack of awareness. This paper critically analyzes enablers and barriers in adoption of cloud computing by MSMEs. It also attempts to create awareness, answering many concerns about cloud computing that can be used by MSMEs. It suggests use of cloud computing by MSMEs in India thereby reducing upfront investments, costs and improving efficiency and flexibility.