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2010: ACCA Launched

Computing Industry Leaders Form Asia Cloud Computing Association to Drive Regional Adoption, Security, and Policy

Hong Kong, 11 November 2010 – Alcatel-Lucent, Cisco Systems, EMC Corporation, Microsoft, NetApp, Nokia Siemens Networks, PLDT/Smart, Rackspace, REACH, Telenor, and Verizon, today announced they have formed Asia Cloud Computing Association (Asia Cloud), an open collaboration forum based in the Asia Pacific region.

The non-profit, vendor-neutral organization will address regional issues and challenges to adoption of cloud computing in Asia including privacy and security concerns, compliance and regulatory mandates, licensing models, service levels, and other market risks.

The research firm IDC estimates that the market for cloud computing in Asia outside Japan will grow to around U.S.$1.3 billion this year and will continue to expand at a rate of approximately 40 percent a year until 2014 (Source: IDC, 2010), whereas in Japan, currently the second largest IT market globally, the cloud computing market is expected to grow to U.S.$29.2 billion in 2015 (Source: Japan's Internal Affairs and Communications Ministry 2010). However, security concerns, data storage regulations, low penetration of bandwidth in some countries, and government policies oriented to traditional computing models are inhibiting market growth.

"Cloud adoption in the Asia Pacific region has yet to reach its full potential. The regulatory landscape and varying market maturity levels have fragmented the adoption of cloud computing in the region," noted Asia Cloud Chairman and REACH Chief Information Officer, Sundi Balu. "Organizations in Asia have voiced several concerns, particularly around security, service levels, and regulatory positions. There is a strong sense of urgency to have these concerns resolved by an open industry collaboration focused on the actual market realities and conditions in Asia. With Asia Cloud as a platform, key stakeholders can collaborate on issues specific to Asia and enable faster and more efficient adoption of cloud computing."

The organization will evaluate global cloud standards produced by other industry associations and determine which can be adapted or advocated regionally. Initial working groups include those for public policy and regulatory issues, security, taxonomy, and carrier-grade applications. Anticipated deliverables for 2011 include best practices, a cloud-readiness index, development of a taxonomy, and the establishment of formal relationships with other organizations in cloud computing.

Asia Cloud welcomes computing service, hardware, and software providers, end users, and government/policy, research/academic organizations to join the effort. More information about Asia Cloud and a membership prospectus are available at www.asiacloudcomputing.org.

About Asia Cloud

Asia Cloud Computing Association fosters collaboration and innovation in Asia to drive adoption of cloud computing regionally. Asia Cloud's outreach efforts extend to policy and regulation, security, best practices, and market education. For more information, visitwww.asiacloudcomputing.org.

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Quotes

Per Dahlberg, Chief Executive Officer and co-founder, Asia Cloud Computing Association, said: "The founding members of Asia Cloud Computing Association recognize the challenges that companies face when adopting cloud computing, especially in a fragmented regulatory landscape such as Asia. We are actively engaging policymakers, service providers, and users of cloud computing to identify and share best practices, as well as set achievable goals that will reduce barriers to cloud adoption. With frequent dialogue and clear objectives, the industry can now move forward in bringing the benefits of cloud computing to organizations in Asia."

John Wright, Chief Executive Officer, REACH, said: "As our utilization of cloud services continues to grow, we welcome the foundation of Asia Cloud Computing Association to streamline the process of adopting cloud services for our business. Navigating regulatory hurdles in different markets throughout Asia requires time and resources; we are excited to hear about Asia Cloud and think its presence will enable our organization, and other companies like ours, to move more quickly to take advantage of cloud computing."

Mark Ross, Chief Technology Officer and co-founder, Asia Cloud Computing Association, said: "Cloud computing creates new competitive opportunities for all sizes of companies operating in the Asia Pacific region. For example, with a pay as you consume model, cloud services dramatically lower both the cost of entrance and time to market for new companies, allowing even start-ups to threaten a successful incumbent. With cloud computing, it becomes possible to maintain the business logic and related infrastructure centrally without negatively compromising important innovation, time to market and cost priorities. For these and other reasons, cloud computing offers significant potential for Asia but barriers, some real, some perceived, are slowing the adoption rate. Asia Cloud Computing Association aims to address and where possible remove these barriers to more rapidly exploit cloud solutions."

Bernie Trudel, Public Policy and Regulatory Working Group lead and Cloud Chief Technology Officer, Cisco Systems, Asia Pacific, said: "It is critical for national public policy makers to understand the benefits of cloud computing and how the technology can make their countries more competitive. By attracting foreign investment from the private sector and providing a boost to e-government initiatives in the public sector, support for cloud computing offers significant opportunities for local industries and businesses. Countries with insightful, transparent and fair regulatory environments will be successful in capitalizing on this new opportunity. Asia Cloud Computing Association will produce governance recommendations and policy considerations to achieve wins across the entire value chain."

Vasile Radoaca, Security Working Group lead and Chief Strategy Officer APAC, Alcatel-Lucent, said: "Security concerns represent one of the main barriers to enterprise adoption of cloud computing. In order to provide solutions, regional market conditions and regulatory concerns must be taken into consideration, especially in diverse and fragmented regions such as Asia. Asia Cloud Computing Association will play a key role in the region by providing security recommendations specifically suited for Asian markets."

Mike Murphy, initiator of the Carrier-Grade Cloud Computing Working Group and Head of Technology APAC, Nokia Siemens Networks, said: "Cloud computing will play a fundamental role in re-shaping how telecommunications service providers offer applications to end users and how their internal systems are implemented. Asia Cloud Computing Association is a great vehicle for industry leaders to direct that re-shaping in a consistent manner."

Par Botes, Chief Technology Officer, EMC Corporation, Asia Pacific & Japan, said: "Due to its low cost of ownership and rapid deployment timeframes, cloud computing presents an ideal service model for organizations in Asia Pacific. However, education is needed to address concerns, particularly in the areas of security and regulation, and to advise how standards can be applied in local markets. Asia Cloud Computing Association was founded to build momentum, and help governments and corporations in Asia to advance the cloud computing market. The association will enable organizations to join forces and work as a single entity to tackle challenges that currently prevent adoption."

Paul Kessler, Asia Pacific Business Head, Emerging Channels, NetApp, said: "Customer buying behaviors are shifting throughout the world. Due to shrinking budgets and increased demand in business agility, the market for cloud service providers to solve today's challenges are rapidly growing across various geographies. NetApp sees Asia Cloud Computing Association as an organization with the industry's leading technology and services leaders to enable this trend in Asia Pacific markets. We see Asia Cloud as being able to provide thought leadership and enable markets throughout Asia Pacific, and provide perspective around complexities such as cultural and regulatory issues across multiple countries."

Rolando G. Pena, Head of the PLDT and Smart Customer Assurance Group, said: "PLDT and Smart are proud to be part of this pioneering initiative that will benefit the changing landscape of Philippine telecommunications. This collaboration with Asia's top industry players will allow us to explore the enormous opportunities that cloud computing has to offer to our business. We are optimistic that Asia Cloud Computing Association will help PLDT and Smart lead and accelerate the adoption of cloud computing in the Philippines."

Bret Piatt, Senior Manager, Corporate Development, Rackspace, said: "In order for the cloud computing industry to evolve from its infancy, a common set of terms is required for vendors, operators, and consumers to classify emerging services and technologies. With the development of a simple taxonomy that is both comprehensive and adaptable to the evolution of this domain, Asia Cloud Computing Association will introduce standards that give users confidence in adopting cloud services."

Frode Stoldal, Vice President and Head of Technology, Telenor Group, Asia Region, said: "At Telenor we believe cloud computing has great potential to produce cost efficient applications, utilize economies of scale and help us to stay close to our customers. This will be enabled and delivered through an efficient telecom infrastructure. Collaboration across the ICT value chain is vital to drive cloud computing forward."

Tejinder Sekhon, Regional Vice President Global Services, Verizon Business, said: "There is a fundamental shift underway toward cloud-based, converged solutions, delivered over global IP networks. This new computing model built on flexible access to large amounts of scalable computing power will transform enterprise operations. Business leaders must adopt this new mindset if they are to drive business success. Together with the other founding members of Asia Cloud Computing Association, we are focused on helping organizations make this innovative and vital technology investment."

CONTACT:

Lim May-Ann
Executive Director, Asia Cloud Computing Association
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