Cloud Indonesia
Adoption of the Cloud Business Model in Indonesia: Triggers, Benefits, and Challenges
Ivonne Sartika Mangula1
Universiteit Utrecht Princetonplein 5, PO BOX 80089 3508 TB, Utrecht +31 30 253 54 33
Inge van de Weerd
VU University Amsterdam De Boelelaan 1105 1081 HV Amsterdam +31 20 598 31 32
Sjaak Brinkkemper
Universiteit Utrecht Princetonplein 5, PO BOX 80089 3508 TB, Utrecht +31 30 253 31 75
i.s.mangula@uu.nl
i.vande.weerd@vu.nl
s.brinkkemper@uu.nl
The objective of this paper is to identify the current state of cloud business model adoption in Indonesia. We use an exploratory case study approach, since the number of publications on this topic is limited. We conducted 12 case studies with cloud service providers in Indonesia, which consisted of interviews and document studies. The analysis of our interviews revealed that the cloud business model adoption in Indonesia is mainly initiated by the local IT services providers. We also found that market demand was the main triggering factor for adopting the cloud business model. One of the key benefits that was mentioned, is the positive trend in revenue gains. The most encountered challenge for Indonesian cloud service providers is the low speed of internet connection in rural areas. The findings revealed from our study can serve as reference for IT practitioners and researchers who look for information and understanding on cloud business model adoption in Indonesia.
ABSTRACT
minimum management effort and interaction with service providers [5]. Basically, there are three service models of cloud computing: SaaS (Software as a Service), PaaS (Platform as a Service), and IaaS (Infrastructure as a Service) [22]. However, as promoted by the vision of “everything as a service”, some of the key players of cloud services, such as Amazon, Google, Salesforce.com and Microsoft, added several new products offered as a service under the umbrella of cloud computing: DaaS (Database as a
Ivonne Sartika Mangula1
Universiteit Utrecht Princetonplein 5, PO BOX 80089 3508 TB, Utrecht +31 30 253 54 33
Inge van de Weerd
VU University Amsterdam De Boelelaan 1105 1081 HV Amsterdam +31 20 598 31 32
Sjaak Brinkkemper
Universiteit Utrecht Princetonplein 5, PO BOX 80089 3508 TB, Utrecht +31 30 253 31 75
i.s.mangula@uu.nl
i.vande.weerd@vu.nl
s.brinkkemper@uu.nl
The objective of this paper is to identify the current state of cloud business model adoption in Indonesia. We use an exploratory case study approach, since the number of publications on this topic is limited. We conducted 12 case studies with cloud service providers in Indonesia, which consisted of interviews and document studies. The analysis of our interviews revealed that the cloud business model adoption in Indonesia is mainly initiated by the local IT services providers. We also found that market demand was the main triggering factor for adopting the cloud business model. One of the key benefits that was mentioned, is the positive trend in revenue gains. The most encountered challenge for Indonesian cloud service providers is the low speed of internet connection in rural areas. The findings revealed from our study can serve as reference for IT practitioners and researchers who look for information and understanding on cloud business model adoption in Indonesia.
ABSTRACT
minimum management effort and interaction with service providers [5]. Basically, there are three service models of cloud computing: SaaS (Software as a Service), PaaS (Platform as a Service), and IaaS (Infrastructure as a Service) [22]. However, as promoted by the vision of “everything as a service”, some of the key players of cloud services, such as Amazon, Google, Salesforce.com and Microsoft, added several new products offered as a service under the umbrella of cloud computing: DaaS (Database as a
References: [1] Azam, M. S., and Quadddus, M. 2009. Adoption of eCommerce by the SMEs in Bangladesh: The Effects of Innovation Characteristics and Perceived Risk. ANZMAC 2009. [2] Chandrasekaran, A., and Kapoor, M. 2010. State of cloud computing in the public sector – A strategic analysis of the business case and overview of initiatives across Asia Pacific. Frost & Sullivan 2011 – Market Insight. [3] Chang, V., Bacigalupo, D., Wills, G., and De Roure, D. 2010. A categorisation of cloud computing business model. IEEE International Conference on Cluster, Cloud and Grid Computing. [4] Craig, R. et al. 2009. Cloud computing in the public sector: Public Manager’s guide to evaluationg and adopting cloud computing. White Paper. Cisco Internet Business Solutions Group. [5] Dillon, T., Wu, C., Chang, E. 2010. Cloud computing: Issues and Challenges. Proceedings of the 24th IEEE International Conference on Advanced Information Networking and Applications. [6] Fang, Z., Chen, J., Yi, M., Wu, Z., and Qian, H. 2010. Cloud computing business model based on value net theory. IEEE International Conference on E-Business Engineering. [7] Fichman, R. G. 2004. Going Beyond the Dominant Paradigm for Information Technology Innovation Research: Emerging Concepts and Methods. Journal of AIS Vol. 5, Issue 8, Article 11 August 2004. [8] Gordon, J. et al. 2010. Exploring the Future of Cloud Computing: Riding the Next Wave of Technology-driven Transformation. White Paper. World Economic Forum. [9] Greengard, S. 2010. Cloud Computing and Developing Nations. Communications of the ACM. May 2010. Vol. 53. No. 5. [10] Habib, S. A., Ries, S., and Muhlhauser, M. 2010. Cloud computing landscape and research challenges regarding trust and reputation. Symposia and Workshops on Ubiquitous, Autonomic and Trusted Computing. [11] Hu P. J., Chau P. Y. K., Sheng O. R. L., and Tam K.Y. 1999. Examining the Technology Acceptance Model Using [27] Rogers, Everett, M. 2003. Diffusion of Innovation. 5th Edition.Free Press Publisher. New York, NY 10020. [28] Sang, H., and Tsai, D. 2009. Analyzing Strategy of Integrating ICT into Teaching Activities Using Innovation Diffution Theory. IEEE Computer Society. 62 [29] Sarosa, S. 2007. The Information Technology Adoption Process within Indonesian Small and Medium Enterprises. Dissertation Manuscript. University of Technology, Sydnes, Australia. [30] Tapscott, D., Ticol, D., and Lowy, A. 2009. Digital capital: Harnessing the power of business Webs, Ubiquity, 1 (13). [31] Teixeira, C., Azevedo, R., Pinto, J. S., and Batista, T. 2010. User provided cloud computing. IEEE International Conference on Cluster, Cloud and Grid Computing. [32] Thatcher, S. M. B., and Foster, W. 2002. B2B e-commerce adoption decisions in Taiwan: The interaction of organizational, industrial, governmental and cultural factors. Proceedings of the 36th Hawaii International Conference on System Sciences (HICSS’03). IEEE Computer Society. [33] To, W., Lai, L., and Chung, A. 2012. Mobile Computing in China. IT Professional. IEEE Computer Society. [34] Venkatesh, V., Morris, M. G., Davis, G. B., and Davis, F. D. 2003. User Acceptance of Information Technology : Toward a Unified View, MIS Quarterly ol. 27, No. 3, pp. 425 – 478. MIS Quarterly Vol. 27 No. 3, pp. 425478/September 2003. [35] Walsh, L. M. et al. 2010. Cloud computing business models for the channel. White Paper. CompTia Cloud/SaaS Community. [36] Weinhardt, C., Anandasivam, A., Balu, B., and Stober, C. 2009. Business models in the service world. IEEE Computer Society. (March/April 2009). [37] Yin, R. K. 2009. Case Study Researc: Design and Methods. 4th Edition. SAGE Publication. Thousand Oaks, California 91320. [38] Zhang, L. J., Zhang, J., Fiaidhi, J., and Chang, J. M. 2010. Hot topics in cloud computing. IEEE Computer Society. 63