The cloud computing is the next generation of the computing, its advantages, advancements and research are a plenty. In recent years, the term “cloud computing” has been critical in the world of IT. Cloud computing, or the use of internet-based technologies to conduct business, is recognized as an important area for IT innovation and investment (Armbrust et al., 2010; Goscinski and Brock, 2010; Tuncay, 2010). Cloud computing has spread out through the main areas related to information systems (IS) and technologies, such as operating systems, application software, and technological solutions for firms (Armbrust et al., 2010). The promise of cloud computing is to deliver all the functionality of existing information technology services even as it dramatically reduces the upfront costs of computing that deter many organizations from deploying many cutting-edge IT services (J.Staten, 2009).
Cloud computing represents a convergence of two major trends in information technology — (a) IT efficiency, whereby the power of modern computers is utilized more efficiently through highly scalable hardware and software resources and (b) business agility, whereby IT can be used as a competitive tool through rapid deployment, parallel batch processing, use of compute-intensive business analytics and mobile interactive applications that respond in real time to user requirements (W.Kim, 2009). The impetus for change right now is seen predominantly from a costs perspective, as organizations increasingly discover that their substantial capital investments in information technology are often grossly underutilized (Sean Marston et al., 2010).
Although there have been many recent publications that discuss various features, opportunities and issues related to Cloud services ([Jane Anderson et al., 2010], [Sam Goundar et al., 2011]), but only few scholars have attempted to explain the factors for adoption of cloud database ([Chinyao Low et al., 2011]). Related studies have looked at Strategic research model for Enterprise Information Planning adoption with Technology, Organization and Environment as moderators (Liu hongjun et al., 2010). The gap in this research is that both TOE and TAM model are not being looked as one model explaining Cloud database adoption.
This study investigates the cloud database acceptance by combining the work done by (Chinyao Low et al., 2011) pertaining to Understanding the determinants of cloud computing adoption and (Liu hongjun et al., 2010) pertaining to Strategy Research of Enterprise Information Planning based on TOE-TAM model. Also this study discusses about the key advantages and challenges faced by implementing Cloud database.
As the cloud services are increasingly expanding through research and development. This study will be constructive to the cloud service development and growth.
Nevertheless, the Technology Acceptance Model (TAM) provides one of the most parsimonious, yet robust, models in explaining Information and Communication Technology characteristics and their effects on consumer adoption/use of new ICTs (Kenneth C.C. Yang, 2005). Internet is a product of Information Technology; as such Internet Cloud services should be explained as a part of Technology Acceptance Model (Davis 1989; Davis et al. 1989). TAM is a parsimonious and theoretically justified model intended to explain information technology adoption (van der Heijden, 2003). TAM has two main keywords which are user’s adoption intention and actual usage.
The user adoption intention is called as “Perceived usefulness”, which is defined as “the degree to which a person believes using a particular system would enhance his or her job performance” (van der Heijden, 2003). The actual usage is called as “perceived-ease-of-use”, which is defined as “the degree of to which a person believes that using a particular system would be free of effort” (van der Heijden, 2003). TAM theorizes that perceived ease of use and perceived usefulness affect the consumer adoption decisions (Venkatesh and Davis, 2000).
Organization will have influence on new technology acceptance from three aspects: T (tech), O (organization) and E (environment). The tech includes existing technology of an enterprise and technology which has not been introduced on the market. Organization generally refers to the scope and scale of an enterprise, including management structure characteristics, and human resource status. Environment is also called regulation on industry and transactions with partners, competitors and government. TOE model is highly systematic, widely used to analyze influence factors of information technology adoption in different fields in recent years. Several studies (Chau and Tam, 1997; Chong and Ooi, 2008; Kuan and Chau, 2001; Lin and Lin, 2008; Oliveira and Martins, 2010; Pan and Jang, 2008; Shirish and Teo, 2010; Zhu et al., 2004) have been credited with proposing the TOE framework, developed by Tornatzky and Fleischer (1990), to analyse IT adoption by firms.
The TOE framework identifies three context groups: technological, organizational, and environmental. The technological context refers to internal and external technologies applicable to the firm. Organisational context refers to several indexes regarding the origination, such as firm size and scope, centralisation, formalization, and complexity of managerial structure and the quality of human resources. Environmental context refers to a firm’s industry, competitors and government policy or intention. The TOE framework is consistent with Rogers’ (1983) theory of innovation diffusion (Pan and Jang, 2008; Shirish and Teo, 2010; Wang et al., 2010), which recognizes the following five technological characteristics as precedents for any adoption decision: relative advantage, complexity, compatibility, observability, and trial ability. Therefore, the TOE framework explains the adoption of innovation and a considerable number of empirical studies have focused on various IS domains.
Swanson (1995) contended that adoption of complex IT innovations requires an advantageous technology portfolio, organizational structure, and environmental strategy. Chau and Tam(1997) adopted the TOE framework and explained three factors that affect the adoption of open systems. These factors are the characteristics of the innovation, organizational technology, and external environment. Kuan and Chau (2001) confirmed the utility of the TOE framework adopting complex IS innovations. Several studies are grounded in the TOE framework for assessing the value of e-business at the firm level (Lin and Lin, 2008; Oliveira and Martins, 2010; Zhu et al., 2004).
They found that technological readiness (the significant factor), financial resources, global scope, and regulatory environment contribute strongly to e-business value. Hong and Zhu (2006) considered the TOE framework in the adoption of e-commerce and the identification of new factors that fit the characteristics of type III innovation. Shirish and Teo (2010) demonstrated the impact of information and communication technology (ICT) on the TOE framework and suggested that policy makers should consider measures to enhance development of e-government and e-business collectively. Pan and Jang (2008) examined the factors within the TOE framework that affect the decision to adopt ERP in Taiwan’s communications industry. Chong and Ooi (2008) utilised the TOE model empirically to examine the factors that affect the adoption of the RosettaNet standard.
The foundation of theoretical model consists of TAM and TOE model. During the last two decades, Technology Acceptance Model (Davis 1989; Davis et al. 1989) has emerged as a powerful explanation to account for the influence of technology acceptance behaviors in a wide variety of IT. This study focuses on positive effect of Technology, Organization and Environment on the Technology Acceptance Model among high-tech Industries. Few previous studies, if any, have focused on the adoption and acceptance of cloud database. Nor did previous studies examine the effect of TOE and TAM for the acceptance of cloud database.
Based on our theoretical proposition that relates TOE (Technology, Organization and Environment and Technology) and Technology Acceptance Model (TAM) a research model (Figure 2) has been developed and propose six hypotheses grounded in the cloud database context.
Technology Acceptance Model and Cloud Database:
A cloud database is a part of Information Technology; as such the intention to use the cloud database should be explained in part of Technology Acceptance Model (TAM). This model has been used in number of research and numerous empirical results show that TAM is a parsimonious and robust model (Gefen and Straub, 2000).
According to TAM, the intention to use a new technology is affected by 1.Perceived usefulness (PU) and 2.Perceived ease of use (PEOU). PU is defined as a belief that using a technology will enhance a person’s job performance, while PEOU is defined as the degree to which a person believes that using an IT will be free of effort.
TAM has been discussed in great detail by (Gefen and Straub 2000; Venkatesh and Davis 2000). As shown in previous research (Gefen et al. 2000), this study hypothesize that paths predicted by TAM apply also to internet cloud service usage. As in previous TAM studies, the underlying logic are users react rationally when select an Information Technology to work on. The more useful and easy to use is the internet Cloud service in enabling the users to accomplish their tasks, the more it will be used:
H1: PEOU will positively affect PU of an internet Cloud service. H2: PU will positively affect intended use of an internet Cloud service. H3: PEOU will positively affect intended use of an internet Cloud service.