Research Note: The Paradox of Cloud Computing in Japan

Abstract

Cloud Computing is defined as computer usage delivered as a service over the Internet. This cloud computing is classified as public computing, private computing, or hybrid computing. Public cloud computing is open to any customer who pays service charges. On the contrary, private cloud computing is used by a member of a company who has constructed a cloud computing system over a restricted domain on that company's information infrastructure. Hybrid cloud computing is a mix of both the public and private. Which type of cloud computing is popular in Japan? To answer this question I mailed questionnaires to 2,284 enterprises listed on the Tokyo Stock Exchange Market in 2012 and 2013. I analyzed the relationship between these answers and financial indexes using a multinomial logistic regression model. I concluded that the total assets was the most effective factor in the decision to introduce the public cloud, and the accumulated profit was one of the most effective factors in the decision to introduce the hybrid cloud. These findings are not consistent with orthodox price theory.