CHALLEN

GES A

ND

OPPORT

UNITIE

S OF

CLOUD

ADOPTIO

N IN

HONG KONG

10

/ 10

/ 20

13

CC

SI G

EX

EC

UT

I VE

CL O

UD

FO

RU

M

WHERE ARE WE TODAY?

Source: Rackspace Hong Kong Cloud Survey (July 2013)

36% 34% 30%

Private Cloud Public Cloud Hybrid Cloud

General cloud adoption in HK: 84%The rest are considering transition within 1-2 years

BASIC APPLICATIONS ARE MORE POPULAR

Complex Basic

Server

Back-up/Storage

Email

Database

Supply Chain

Disaster Recovery

App testing & Collaboration

Source: Rackspace Hong Kong Cloud Survey (July 2013)

TOP REASONS FOR CLOUD ADOPTION

Cost reduction

Efficiencygain

Transformation

OPPORT

UNITIE

S

FULL POTENTIAL NOT YET REALISED

• HK IT market: 4 billion market, 10% cloud adoption?

• New business opportunities and jobs from cloud adoption

• Increased government investment and facilitation

• SME cloud adoption on the rise

• New technology emerging: Internet of Things, streaming digital content…

CLOUD STANDARDS

Establishing standards and interoperability

OGCIO:

1. HK/Guangdong Expert Committee on Cloud Computing Services and Standards

2. Expert Group on Cloud Computing Services and Standards (EGCCSS)

• Working Group on Cloud Computing Interoperability Standards

• Study on Cloud Services Assessment Tools and Certification Schemes

INFRASTRUCTURE – DATA CENTRE DEVELOPMENT

Availability of land and space

• Greenfield Sites in Open Market: 5 tender proposals received for TKO site bidding

• Redevelopment of Industrial Buildings for Other Uses

• Wholesale and partial conversion

• HK Science & Technology Parks? Or even Underground Cavern Sites?

CHALLENGES

Security, privacy &

control

Performance

Cost

Integration

SECURITY AND CONTROL

Businesses

• Outsourcing: How to select a cloud vendor?

• How to maintain direct control to safeguard data integrity?

Cloud service providers

• How to satisfy data residency and privacy requirements

• How to remain flexible and provide cost-effective service?

Regulator

• Formulation of relevant standards and practices

• Would sensitive data end up overseas?

Customers/end-users

• Are my data safe in the cloud?

• Would I know if there is security or privacy breach?

IMPROVING DATA SECURITY AND PRIVACY

Governance Operation

Governance and Enterprise Risk Management

Traditional Security, Business Continuity and Disaster Recovery

Legal and Electronic Discovery Data Center Operations

Compliance and Audit Incident Response, Notification and Remediation

Information Lifecycle Management

Application Security

Portability and Interoperability Encryption and Key Management

Identity and Access Management

VirtualizationSource: Security Guidance for Critical Areas of Focus in Cloud Computing V2.1, Cloud Security Alliance 2009

PRIVACY

Security

Is the data protected from theft, leakage,

spying or attacks?

What is the level of control

and protection?

Residency

Where is the data stored?

geographically disbursed?

What to do with data in

transit & outside

territory?

Privacy

Who can see personally identifiable information

(PII)?

Storing, transferring, locating and protecting PII

COMPLIANCE WITH REGULATION• Some countries have laws restricting storage of data outside

their physical country borders: India, Switzerland, Germany, Australia, South Africa and Canada • EU: Data Protection Directive; Safe Harbor Principles• USA: US Patriot Act, 40+ states have breach notification laws (25 states have exemption for encrypted personal data)• Canada: Freedom of Information and Protection of Privacy Act

• Hong Kong? • Section 33(2)(f) of Personal Data (Privacy) Ordinance, • Guidelines and information via infocloud.gov.hk

PERFORMANCE AND IMPLEMENTATION• Cost of migration: cloud adoption =

downsizing?

• System integration with existing infrastructure

• Other costs: business process transformation, infosec support

• Service level agreements (SLAs): data security and system availability

• Interface with customers?

WHAT’S NEXT?

• Cloud as the tool for business and process transformation

• Blurring distinctions between SaaS, PaaS and IaaS environments

• Level of knowledge of potential cloud customers

• Hong Kong as the Global Cloud Centre?

THANK YO

U!

Charles MokLegislative Councillor (Information Technology)charles@charlesmok.hkwww.charlesmok.hkFacebook: Charles Mok BTwitter: @charlesmok