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Along with the growing attention, cloud computing is not only changing the computing paradigm, but also the style of computing in which dynamically scalable and virtualized resources are provided as services over the Internet. Cloud computing introduces a lot of chances, as well as, challenges in the new trend. Taiwan has been well known as a major Information Communication Technology (ICT) manufacturing traditionally. Many Taiwan's hardware products have been top ranked in the global market. Taiwan has realized the trend that Cloud Computing is leading to and has reacted to integrate its resources from the government, industry, academia, and research centers, by initiating strong incentive programs for cloud computing, with an intension to transform an ICT Island into a Cloud Village. In this article, we describe the status of the development of cloud computing technologies and its future challenges for Taiwan.