Industry Analysis of Cloud Computing

As previously indicated, ICT is expected to contribute to future economic and societal development as a general purpose technologyGeneral purpose technology and as backbone infrastructureBackbone infrastructure. This chapter analyzes cloud computing and its market from various perspectives. I begin first, by reviewing the definition and characteristics of cloud computing, methods of implementation, and types of service, as well as the role that cloud computing plays within the overall computer system (3.2). Second, I examine the cloud computing market, focusing on the market’s steady expansion and increasing oligopolistic character (3.3). Third, I touch upon the relationship between cloud computing and business by looking at various public documents. I review how cloud computing is indispensable core infrastructure supporting digital transformation (DX), which is expected to bring about major changes to the economy and society (3.4). Fourth, I summarize the current state of digital platform policies, which have been the subject of greater debate than cloud computing policies because of their significant economic and societal impact, and I discuss the similarities between the digital platform and cloud computing markets (3.5). Fifth, I establish four basic policy perspectives that should be taken into account when formulating cloud computing regulatory policies. I then anticipate possible future issues that may arise in the market based on these basic policy perspectives, and consider possible policy responses from a regulatory perspective. I also explore  government policies needed to promote cloud computing (3.6). Finally, I address the role of e-commerce chapters that cover cloud computing in free trade agreements to consider cloud computing policies at the intergovernmental level (3.7).