Crucial Factors for Success in Taiwan's Cloud Information Services Industry

By Lin, G. T. R.; Hsieh, P. H. et al. | International Journal of Business and Information, June 2015 | Go to article overview

Crucial Factors for Success in Taiwan's Cloud Information Services Industry


Lin, G. T. R., Hsieh, P. H., Chou, C. James, Hsi, P. H., International Journal of Business and Information


(ProQuest: ... denotes formulae omitted.)

1. INTRODUCTION

The cloud services industry has become a hot industry because of the solid establishment of information systems and the popularity of the Internet. It is one of the industries on which enterprises primarily focus. It has also been promoted by the government of Taiwan during recent project developments. Cloud computing breaks away from the everyday concepts of personal computer operations, by unifying the management of information operations at remote data centers while allowing users to issue instructions and use various commands and operations from the end-point environment. All computing and data storage are accomplished at remote sites. Cloud services can be accessed over the Internet without location and time limitations.

Cloud computation is not a new technology. Instead, it is a concept based on the use of computer and Internet technology and is a distributed computing service model [Fowler and Worthen, 2009]. Cloud computing links a large number of computer systems into a large database and provides an information processing service. Because cloud computing does not use the resources of a single entity, it is not restricted by remote or local computers. Service providers are able to avoid the hurdle of time and space limitations and provide users with real-time services. Users are able to use the service software anytime, anywhere, in a very rapid and convenient way [Truong, 2010]. The essence of cloud computing is a service model that provides customized services in accordance with the needs of users; provides application services, computer, and network resources to users; is readily accessible according to the needs of the users; and charges customers based on the number of times or length of use.

As the use of hand-held devices and Internet bandwidth increase, cloud services is changing the behavior patterns of consumers. Enterprises increasingly recognize the importance of cloud services as a new business opportunity to bring in higher corporate earnings. Currently, cloud services in Taiwan are considered one of the "four major intelligent industries." In addition, a "cloud computing industry advising group" has been established by the Executive Branch aimed at forming a cloud computing industry value chain, so that the government and private enterprises can make full use of cloud computing and enhance Taiwan's international competitiveness. Huge cloud opportunities are the main focus of Taiwan's cloud industry because cloud computing services can reduce the implementation costs of business information systems, improve the performance of information services, and enhance operational efficiency [Raguz, 2010]. Enterprises implement cloud computing services in the hope of achieving four major benefits: improved business operations and IT functional flexibility, reduced manpower expansion and maintenance costs, improved collaboration to increase operational efficiency, and enhanced resource sharing and energy efficiency management [Chen, 2012].

For IT service providers, achieving these benefits means providing customer service via business models best suited for various scenarios while achieving required profit goals. To do this, the industry must re-examine the relationship between industry trends and its relationship with customers. From the perspective of actual business operations, different companies in different industrial environments with different corporate resources and value chains will lead to specifically customized business models. A good business model seeks opportunities to become the object of imitation and application in a specific industry and to potentially become the mainstream business model. However, no single business model can be referred to as quasi-universal and be fully replicated by all companies and industries.

The IT services industry is considered one of the knowledge-intensive industries. These industries emphasize the high value-added properties of business and explore new business opportunities through enhanced value chain activities in order to increase industrial competitiveness and sustain profitability and growth. …

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