1. Information systems have recently undergone substantial changes. The computing power has experiencing a move from “Asset” to “Expense”. Under the emerging model of cloud computing, user organizations do not need to have an ownership of the information systems. They can now just use the computing power, as a service, that is provided by IT system companies. 2. Recently, Japan’s foreign direct investment in China seems to have peaked out. Japan’s FDI by big enterprises entered a resting stage, while SMEs have come to a standstill. In order to activate investment activities at Japanese SMEs in China, supporting environments need to be prepared so that SMEs can concentrate their capability in their core activity such as manufacturing. 3. This paper aims at examining the possibility of cloud computing model in China’s computer software and service markets so that we can identify the area where this new approach can be effectively used. Could the cloud computing be a shelter for SMEs in China?
