1 CHAPTER I INTRODUCTION I.1 Background Covid 19 Pandemic and the 4.0 industrial revolution are among the catalysts in expediting digital transformation in various sectors. In general terms, digital transformation is the integration of digital technology into all areas of a business resulting in fundamental changes to how businesses operate and how they deliver value to customers. Indonesia, focuses its effort to realize the Digital transformation plan in sectors comprising; transportation and tourism, digital trade, digital financial services, digital real estate and urban, digital education, digital health, industrial digitization, and government digitization. Indonesia’s Road map of Digital transformation spreads across ministries, central and regional governments, business, and public which marks the important opportunity to take part in this equation. Along with the significant importance of the digital transformation agenda for the world and Indonesia there comes also business opportunities it brings for IT companies operating in Indonesia. In 2026, the Indonesian IT services industry is forecasted to reach a value of $12.4 billion an increase of 49.4% since 2021. Infrastructure services is the largest segment of the IT services industry in Indonesia, accounting for 63% of the industry’s total value. The country is an attractive managed IT services market which potentially grows at 11.3% CAGR to reach US$ 2.75 billion by 2024 (PT LVH Abadi, 2022). According to an article in Sindonews, the research done by World Economic Forum (October 2020) found that Cloud computing is one of the most highly adopted technologies during the pandemic with an achievement of 95%. In addition to being faster, the use of cloud computing encourages industry players to apply technology that is easier to use anytime and anywhere, as well as being able to integrate complex business processes to be efficient and more productive. Hence, Cloud is the biggest enabler in digital transformation. According to Microsoft Azure, Cloud computing is the delivery of computing services, including servers, storage, databases, networking, software, analytics, and 2 intelligence, over the internet (“the cloud”) to offer faster innovation, flexible resources and economies of scale. According to National Institute of Standards and Technology (NIST) definition, “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” (Sonal Dubey, Kritika Verma, M.A. Rizvi and Khaleel Ahmad, 2015). Various institutions and organizations, from startups to global corporations, government offices to NGOs, for various reasons are adopting cloud technology and provider services. However, especially the fact that it is not easy to find cloud expertise, the lack of it hinders cloud adoption in companies and government offices. This causes those organizations turning to managed services providers to help them. There are three different ways to deploy cloud services: on a public cloud, private cloud, or hybrid cloud. Meanwhile, most cloud computing services fall into four broad categories: infrastructure as a service (IaaS), platform as a service (PaaS), serverless, and software as a service (SaaS). In Indonesia, big cloud providers have recently been investing heavily in the business.