This study is a case study of Chunghwa Telecom. Based on a perspective of service supply chain consisting of three roles as supplier, service designer and service provider, this study develops an innovation model of cloud services and explores the evolution of the model. Through collecting the relevant secondary data of the case from 2001 to 2011 and in-depth interviews, this study has collected 1,761 events of service innovation. Each event is treated as an analysis unit. The findings are described as follows. First, cloud service innovations provided by service supply chain are distinguished as three models. Second, the three roles in service supply chain consistently place the most emphasis on PaaS. Moreover, suppliers emphasize IaaS and service designers emphasize CaaS. Third, the development trend of cloud service is from PaaS to IaaS. Fourth, the SaaS development trend of cloud service is from the collaborative design by suppliers and service providers to the self design of service providers. Fifth, the cloud services jointly designed by suppliers and service designers become a development trend.