Adoption of the cloud business model in Indonesia: triggers, benefits, and challenges

  • Authors:
  • Ivonne Sartika Mangula;Inge van de Weerd;Sjaak Brinkkemper

  • Affiliations:
  • Universiteit Utrecht, Princetonplein, TB, Utrecht;VU University Amsterdam, HV Amsterdam;Universiteit Utrecht, Princetonplein, TB, Utrecht

  • Venue:
  • Proceedings of the 14th International Conference on Information Integration and Web-based Applications & Services
  • Year:
  • 2012

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Abstract

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.