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LCQ15: Application of cloud computing
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     Following is a question by the Hon Samson Tam and a written reply by the Secretary for Commerce and Economic Development, Mrs Rita Lau, in the Legislative Council today (June 30):

Question:

     With cloud computing services and technologies developing rapidly in recent years, various advanced countries across the world are actively involved in the development of cloud computing industries. In this connection, will the Government inform this Council whether:

(a) it has made reference to the relevant experience of neighbouring regions and conducted studies on the development and application of cloud computing services in Hong Kong; if it has, of the details, if not, the reasons for that;

(b) it has assessed the effectiveness of cloud computing services in promoting e-government services in Hong Kong and enhancing the efficiency of the Government; if it has, whether it will consider taking the lead to promote the application of multi-cloud computing in government departments;

(c) the authorities had formulated concrete measures in the past three years to assist enterprises, educational institutions and relevant organisations in conducting researches on and developing cloud computing technologies; if they have, of the details; if not, the reasons for that; and

(d) the authorities have considered conducting exchanges and co-operation in cloud computing with the Ministry of Industry and Information Technology, the Chinese Academy of Sciences as well as various provinces and cities on the Mainland; if they have, of the details; if not, the reasons for that?

Reply:

President,

     Regarding the questions raised by the Hon Samson Tam, my reply is as follows:

(a) Cloud computing is a computing model where information technology (IT) resources, services and technologies are shared and delivered as a service over the Internet to the users on demand.

     The Office of the Government Chief Information Officer has examined the strategies, practices and initiatives on cloud computing services in the United States, United Kingdom, China, Singapore, etc. It has also studied relevant industry reports and analyses on the claimed benefits and new challenges brought about by cloud computing. All indications are that cloud computing is becoming a major IT trend and major IT suppliers, both international and local, have started to plan or develop the necessary infrastructure facilities for offering such kinds of products and services.

(b) In assessing the effectiveness of cloud computing services, a number of factors are relevant. These include flexibility in deployment of IT resources, ability to scale up or down the level of resources dynamically depending on demand, upfront costs in setting up the IT infrastructure, unit of procurement and pricing models, availability of service level commitments and associated contractual terms and conditions, information security and privacy of data protection, and interoperability among cloud and non-cloud services. Many of these factors are different from existing practices and require various degrees of adaptation, pilot testing and transition before full adoption. We will take forward a number of projects to confirm the feasibility and provide the implementation method for the transition to the cloud computing model for effective and efficient delivery of e-government services. The adoption of the cloud computing model will have major implications for the architecture and provision of infrastructure, applications, data and services for e-government. One of the priority tasks is for the Government Chief Information Officer to raise the awareness of government bureaux and departments and provide advice to help them in their considerations on whether to adopt cloud computing or not.

(c) The Government is committed to promoting an innovation-driven information and communications technology (ICT) industry as set out in the Digital 21 Strategy. We have been facilitating the development of the local ICT industry and promoting the wider adoption of advanced ICT, including cloud computing services.

     To drive forward innovation and technological upgrading in Hong Kong's services industries, the Government has been offering different funding schemes to the industry. Besides the Innovation and Technology Fund (ITF), we introduced in April 2010 the new Research and Development Cash Rebate Scheme. In the past three years, the ITF has supported and funded four projects amounting to about $2 million in association with the research and development of cloud computing.

(d) At present, there are a number of channels for inter-governmental co-operation and exchanges in information technology between Hong Kong and the Mainland. These include the Ministry of Industry and Information Technology, Ministry of Science and Technology, the Pan-Pearl River Delta Directors of Information Industry, as well as provincial and city level counterparts in Guangdong and Shenzhen. As cloud computing services and technologies are still evolving, we shall continue to explore collaboration and exchange opportunities with our Mainland counterparts on matters of mutual interest.

Ends/Wednesday, June 30, 2010
Issued at HKT 16:25

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