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    China Announces $154 Billion Investment in the ‘Cloud’

    Sep 21, 2011
    According to MIS Asia, China has announced that it will invest $154 billion to develop cloud computing hubs. Asia’s first Cloud Readiness Index, published by the Asia Cloud Computing Association, first reported the information and publicized that a large number of cloud service providers are setting up data centers in Hong Kong, making it the North Asia data hub.

    According to MIS Asia, China has announced that it will invest $154 billion to develop cloud computing hubs. Asia’s first Cloud Readiness Index, published by the Asia Cloud Computing Association, first reported the information and publicized that a large number of cloud service providers are setting up data centers in Hong Kong, making it the North Asia data hub.

    MIS Asia reported that restrictive data protection laws are preventing a global cloud computing industry from being built in China, but this investment will help the nation improve its index rating in the near future.

    "Technology has always been a great enabler of opportunity for business, communities and citizens. Cloud technologies offer the potential for lowering technology costs and creating time to market advantages," said Bernie Trudel, chairman of the Asia Cloud Computing Association and Cloud CTO at Cisco APAC. "Additionally, cloud technologies promise to securely democratise data access – and in doing so, create a myriad value-add possibilities across Asia."

    According to the article, China isn’t the only government pushing forward. The South Korean government has also decided to invest $500 million in public and private cloud initiatives, and Japan has also expressed readiness to maximize the opportunities in cloud computing.

    "I believe Asia's cloud computing potential is poised to grow faster on both sides of the market: as cloud consumers and cloud providers. Because Asia is experiencing such rapid economic growth, it is crucial for all Asian economies to begin to look beyond the opportunities for the cloud for their individual economies and instead begin to analyze how the cloud can help drive greater economic value to the broader region," said John Galligan, vice chairman of the working group and regional director, Internet policy at Microsoft. "The knowledge economy will fuel Asia's future and we think that cloud computing is the next great 'leveller' for the region, poised to help accelerate the momentum around trade."

    Although some countries are showing signs of cloud growth, Singapore and India have a little ways to go. The article noted that Singapore’s Infocomm Development Authority (IDA) and other government agencies understand the significance of the cloud, but the development of its data protection law will play an important role in its progress.
    According to the article, India faces other challenges for cloud growth and will need to improve the quality of its network, broadband, and power grid capabilities in order to lead cloud development in the region.

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