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 [phone]

Inge van de Weerd
VU University Amsterdam De Boelelaan 1105 1081 HV Amsterdam [phone]

Sjaak Brinkkemper
Universiteit Utrecht Princetonplein 5, PO BOX 80089 3508 TB, Utrecht [phone]

[e-mail]

[e-mail]

[e-mail]

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

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