Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Business Opportunities, Trends and Government

in Hong Kong in Information Technology, Data Centre and Cloud Computing

Office of the Government Chief Information Officer

The Government of the Hong Kong Special Administrative Region

Daniel Lai Government Chief Information Officer, HKSARG

October 10, 2012

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Hong Kong – Compact and Well-connected

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Digital 21 Strategy

Blueprint for Hong Kong’s ICT development Covering 5 Action Areas

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

1. Facilitate a Digital Economy

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In 2009, Internet’s contribution to Hong Kong’s economy:

USD 12.4 billion 6% of GDP

Study commissioned by Google in 2011:

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11.00

12.00

13.00

14.00

15.00

16.00

17.00

18.00

19.00

20.00

2009 2010 2011 2012 2013 2014 2015

US$ bn

Projected growth: 7% per year

Year

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

2. Promote Advanced Technology and Innovation

More than 2,700 projects involving over USD 813M granted to support technology upgrading and commercialisation of R&D deliverables

World-class high-tech facilities and research centre:

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

3. Develop Hong Kong as a Hub for Technological Cooperation and Trade

Standing arrangements with Mainland China and international counterparts

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

4. Enable the Next Generation of e- government Services

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GovHK Notifications: exceeding 310,000 cumulative downloads

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

5. Build a Digitally Inclusive Society

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Community

Business

Government

By 2013, all government websites

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Hong Kong as Regional Data Centre Hub

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Critical Infrastructure

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

The first “C”

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

The first “C” – “Comfort”

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Risk-free

• Ranked safest place for setting up data centre in Asia for 2011 & 2012

• Less prone to natural disaster

• Reliable power supply => over 99.999% serviceability

Robust & Agile ICT Infrastructure

• Superb telecommunications networks connections

• Highest mobile and household broadband penetration rates

• Ranked 4th lowest cost of ICT usage in the world in 2010

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

The second “C”

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

The second “C” – “China”

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Mainland China

Hong Kong

Closer Economic Partnership Arrangement (CEPA) Unique free trade deal between Mainland China and Hong Kong

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

The third “C”

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

The third “C” – “Cloud Computing”

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GovCloud

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Promote Data Centre Development

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Data Centre Facilitation Unit

• Provide one-stop service to assist interested parties in setting up data centres in HK

• Liaise with power companies and government departments to address their concerns

• Dissemination of data centre related information, guidelines, good practices, etc.

Clarified with Uptime Institute that “Dual feed from different utility substations” meet the Tier 4 standard

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Promote Data Centre Development

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Year Location (IE)

Company

2001 Tai Po NTT Com Asia 2005 TKO HSBC 2009 TKO HK Exchange 2010 TKO HKColo 2010 TKO Pacnet Global [B] 2010 TKO NTT WT 2010 TKO Google 2011 TKO China Mobile 2011 TKO Pacnet Global [A] 2011 TKO Towngas Telecom 2011 TKO DRT & Savvis

Total 47 acres

Sub-total > 25 acres

Increased Land Supply in Industrial Estates

• Over 25 acres of land have been set aside in the Tseung Kwan O Industrial Estate (TKO IE) alone since 2010

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Promote Data Centre Development

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Increased Supply of Greenfield Lands

• Set aside 5 acres of land for exclusive use of high-tier data centres

• First 2.5 acres for open bidding in 2013

Optimisation of Industrial Buildings

• Exempt waiver fee for conversion into data centre (in whole or in part)

• Assess premium on the basis of high-tier data centre for development of high-tier data centre in industrial lots

• Application period: until 31 Mar 2016

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Hong Kong – Your Regional Partner

Major multinational enterprises and international data centre operators have established data centres in Hong Kong

More and more are coming soon …

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Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government

Office of the Government Chief Information Officer Commerce & Economic Development Bureau Hong Kong SAR Government 20