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This paper aims to contribute to the growing study of Cloud ERP in small and medium enterprises (SMEs). A qualitative study was done in Namibian SMEs to investigate factors that lead to the reluctance of Cloud ERP in SMEs in developing countries. Data was collected from fourteen different SMEs. A Diffusion of Innovation (DoI) framework was chosen to understand how this relatively new technology is being adopted. The study has found attitude towards change, satisfaction with the existing system, lack of knowledge, compatibility issues, unreliable internet connectivity and data security concerns as the main factors that lead to this reluctance. Furthermore, it has also found that perceived low cost has a positive effect on the intention to adopt cloud ERP. The study concludes that the presence of Cloud ERP providers will encourage Cloud ERP adoption, as there seems to be lack of knowledge among prospective adopters. In addition, with unreliable internet connectivity concerns, these providers can consider partnering up with internet service providers to provide affordable reliable internet services.