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This paper aims to explore the cloud computing based service innovation in home textile industrial clusters, which is regarded as a service system. Firstly, the challenges facing home textile industrial clusters (industrial upgrading, structural adjustment, and brand building & management) are analyzed. Secondly, the producer services in the cluster service system are studied. Moreover, it is proposed that the producer services can be enabled and enhanced by innovated cloud platform. The presented IT service platform based on cloud computing and SaaS (Software as a Service) can help enhance the competitiveness of the textile industrial clusters, even innovating the business model.