For Taiwan or mainland China, in their pursuit of economic development and globalization,
cloud services can form the local and international industry supply chain system more solidly
than other industries. The scale of development for cloud services is a major challenge for
enterprises. For example, the following can be challenging issues for the decision and
professionalism of managers of all levels: big data analysis and data mining, competition of
service innovation models, realization of IT enabled services, information services
management and risk governance, corporate management and compliance, improvement of
cost control, service quality, and performance.
On the other hand, in the traditional business model, endless innovations require continuing
investment of resources. While in a cloud environment, the resource integration and cloud
services allow on-going changes of requirements, the complex information communication
based environment starts to become simple, easy to use, and standardized, and a
significant savings on infrastructure investment can be realized. The evolution and
development of cloud technology can have a significant impact to the supply chain of the
enterprise, value chain, business model, strategic direction, and management.
As the cloud technology is being adopted, due to market competition and understanding of
its benefits, the penetration of cloud applications will expand, which will gradually change the
business model of the traditional market and drive new business model. Thus the
development of the traditional market will be impacted and will induce the restructuring of the
industry chain. Cloud services had been influencing the production and organization
management of the traditional industries. This change stems from making the technical
resources into commercial resources. Through the restructuring of cloud services, the focus
is changed from technology capabilities such as computing and storage to business
computation and service capabilities based on customer relationship, marketing, and
business data mining. The shift from single end-point application to multi end point
applications signifies the move toward cloud is a mindset change from technology-based to
people-focused.
With cloud computing, one major change is the shift from centering on infrastructure to
focusing on information services. Economy of scale is an advantage of cloud computing.
Via the infrastructure and services provided by IaaS, enterprises can focus on offering better,
cheaper and faster application services to end users.
Compared to the application deployed for single use in the traditional environment, cloud
services follow a one-to-many service model, which can effectively reduce costs. Without
buying outright or obtaining a physical copy, cloud services can be rented, and the fee can
