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2011 Cloud Readiness Index

Cloud computing is still in its early phases and, in the absence of well defined standards and processes, it is important to invite stakeholders to create a set of industry best practices .The index is an invitation to governments and businesses – large and small – to a discussion about what needs to be done to capitalize on the opportunities that cloud computing offers to the Asia Pacific region.

Cloud Readiness 2011 Index White paper

Cloud Readiness Index 2011 Q&A

 

INDEX TABLE 2011

index 2011 table

 

 

Asia's first "Cloud Readiness Index" shows mixed picture of regional potential for harnessing the power and economic benefits of cloud computing.

Japan in the lead, with Hong Kong, South Korea and Singapore following close behind

Tokyo – 7 September 2011 – Asia's first "Cloud Readiness Index," prepared and published by the Asia Cloud Computing Association, shows a mixed picture in terms of harnessing the power and economic benefits of cloud computing. The league table, which analyses 10 key attributes critical to the successful deployment and use of cloud computing technology in 14 countries across the region, shows that Japan is in the lead, with Hong Kong second and South Korea and Singapore following close behind in joint third place.

China, and the fellow economic giant, India are in 8th and 9th place respectively – reflecting the challenges these economies must overcome in order to speed adoption and enjoy a brighter, more prosperous digital 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. Additionally, cloud technologies promise to securely democratize data access – and in doing so, creating a myriad of value-add possibilities across Asia," said Bernie Trudel, Chairman of the Asia Cloud Computing Association and Cloud CTO at Cisco APAC.

Per Dahlberg, founder and CEO of the Association believes that to realize this potential in Asia, the region needs to harmonize policy and regulatory frameworks to promote effective trade in digital information and services. "Achieving that requires an active debate with an Asia focus. This is exactly what the new Cloud Readiness Index aims to stimulate," he said.

The "Cloud Readiness Index" is designed to track Asia's progress toward a complete spectrum of cloud computing-based infrastructures and services. By mapping the conditions and criteria required for successful implementation and uptake, the Association aims to identify potential bottlenecks that could slow adoption and threaten Asia's digital future.

The Index helps identify the gaps between policy, legal and commercial cloud drivers. This is achieved by leveraging the works of other trade associations, NGOs and publicly available sources in order to provide a tool for businesses, and even policy makers to look at the cloud in a more holistic manner.

The considerations that comprise the first release of the index focuses on are:

1. Regulatory conditions

2. International connectivity

3. Data protection policy

4. Broadband quality

5. Government prioritisation

6. Power grid quality

7. Internet filtering

8. Business efficiency index

9. Global risk

10. ICT development

Countries and the cloud

No.1 Despite some concerns around global risk due to earthquake fault lines and the efficiency of doing business, Japan, the world's third largest economy, has proven itself well and truly ready to maximize the opportunities from Cloud Computing. A mature IT market, it has established itself with a set of known regulations and conditions that encourage Cloud Computing within Japan and is therefore posed for significant growth in the future.

No.2 Hong Kong is increasingly becoming the North Asia data hub with many cloud service providers setting up data centers in the SAR. World leading broadband penetration and excellent international connectivity, coupled with good policy governance, provides a strong platform for cloud adoption by HK government and local businesses.

No.3 Joint No.3 South Korea has an ambitious cloud strategy, with the Government investing US$500m to incubate the cloud for both public and private sector cloud initiatives, and raising their investment to US$2billion by 2014. Their aim is to capture 10% of the global cloud market by 2014 and achieve a 50% reduction in IT infrastructure op-ex in the public sector by 2015.

The other joint No.3 is Singapore, and it is apparent that its Infocomm Development Authority (IDA) and other government agencies understand the significance of the cloud to economic competitiveness. While Singapore scored well in most categories, the development of its data protection law will be an important accelerator to its regional data hosting ambitions.

No.8 China is an emerging economic powerhouse with the world's largest online population and with an increasing rate of growth in Cloud Computing. Restrictive data protection laws currently prevent the building of a global Cloud Computing industry in China. However, recent announcements by the government to invest US$154.5 billion to develop cloud computing hubs may well see China improve its index rating in the near future.

No.9 India, like its economy, is forecast to enjoy spectacular cloud growth. However, there are significant challenges at present for India taking on a leading role across the region for Cloud Computing including the quality of its network, broadband and power grid capabilities. An improved and clearer regulatory situation in India would also make India more attractive to Cloud Computing customers and service providers.

Regional synergy the key to long-term cloud success

"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 'leveler' for the region, poised to help accelerate the momentum around trade," he added.

 

Background

Introduction

What are the "bottlenecks"?

Why should countries and governments be interested in cloud computing?

The Cloud Readiness Index

What is the Cloud Readiness Index?

What is the Cloud Map?

Why these 14 countries?

What is the purpose of the Index?

What are you hoping to achieve with the Index?

What conditions are you covering in the Index?

Why these 10 attributes?

What methodology have you used for the different attributes?

What are the Index attributes based on?

How reliable is the methodology?

What is the roadmap of the Index?

Why are not the U.S. and European countries included in the Index?

Why is the index important to the association and your members?

Who can I talk to to learn more about the index?

Who should we contact to publish the story behind the index?

May we use the index in our marketing/publications?

May we use the index in our product?

About Asia Cloud Computing Association

What is the Asia Cloud Computing Association?

Why "Asia"?

Who founded the association and when?

What are you trying to achieve (what is your mission)?

How are you planning to achieve this?

How do I (an individual) become a member?

How do we (a company) become a member?

 


 

Background

Introduction

The Asia Cloud Computing Association (Asia Cloud) is launching a "Cloud Readiness Index" designed to track the region's progress towards a complete spectrum of cloud computing-based infrastructures and services. By mapping the conditions and criteria required for successful implementation and uptake, the association aims to identify potential bottlenecks that could slow adoption and threaten Asia's digital future.

To further support the discussion the association is also launching a Cloud Map on its web site that will graphically illustrate the current state of the cloud debate – charting and analyzing the issues, the stakeholders and influencers and how the debate is developing.
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What are the "bottlenecks"?

Cloud computing is sparking a lot of discussion and debate in both the public and private sector about how to deal with issues such as reliability of access, security and cybercrime, government access, privacy and data governance, even the protection of intellectual property and free expression. At a more commercial layer, we are also seeing concerns raised about data portability, vendor lock-in and interoperability in the cloud. In many ways, none of these issues are particularly novel as they have been a feature of the technology dialogue for decades. What's new is that the cloud is fostering a new conversation around 'trust' – trust in my service provider, trust in government, trust in the network, trust in the security of my data, trust in my service level agreement. We are at a pivotal stage of building that 'trust' and the Asia Cloud Computing Association wants to be a platform for these important issues to be addressed. We believe that the Index is a good starting point to foster a conversation about the role of industry and governments in building 'trust' to help drive even greater adoption of the cloud but in an informed and predictable environment for clients and customers.
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Why should countries and governments be interested in cloud computing?

Technology, in general, has always been a great leveler of opportunity for business, communities and citizens. Just think about how access to the PC and the Internet has helped bridge the divide for millions across Asia in term access to information and the opportunities to tap into new economic opportunities. The cloud is the next stage in creating an even more level playing field in this digital economy. For governments in particular, the cloud not only provides a chance to lower their costs of infrastructure and help drive savings across their ICT ecosystem, but through this consolidation they can now use the cloud to liberate a vast array of data and information to help inform and provide value to citizens in terms education, healthcare, public safety to name a few.

The potential socio-economic impact in different parts of the world is still being studied. There are no exhaustive studies for Asia at this point in time but the benefits are potentially huge. The Centre for Economics and Business Research states in a recent study that cloud computing will create 2.3 million new jobs across Europe's top five economies between 2010-2015. The World Economic Forum (WEF) says in its' 2011 report that many believe the impact of cloud to become equal to or exceed that of mobile technologies.

To realize this potential also in Asia, the region needs to harmonize the policy and regulatory frameworks to facilitate effective trade in digital information and services. It is therefore necessary to have an active debate with an Asia focus. This is what Asia Cloud is aiming for in terms of its overall mission and with the Cloud Readiness Index".
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The Cloud Readiness Index

What is the Cloud Readiness Index?

The Index is a summary that pulls together existing data to look at the state of readiness for cloud computing in markets across the region - especially how we see regulation and policy work by governments to help advance the cloud in Asia. It measures key criteria that will help companies and individuals determine which markets are best placed for wide adoption of cloud computing services. The Index will analyse 10 key attributes critical to the deployment and use of cloud computing technology across 14 different countries. Countries included are China, Australia, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
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What is the Cloud Map?

The Cloud Map is an initiative by the association to bring subscribers uncommon insights into the evolution of the Cloud, the key issues, their influencers and organizations.

For this we leverage advanced semantic mining technology from STC to tap into and visually map the pulse of the debate across the Web, the Twittersphere and the Blogosphere.

The first in our series of Cloud Maps looks at the Government Cloud regulation debate and the forces behind it.
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Why these 14 countries?

This is the first version of the Index and we made the decision to look at the key markets from where our membership is strong. We hope to include all countries in the region in future versions of the index.

What is the purpose of the Index?

Cloud computing is still in its' early phases and, in the absence of well defined standards and processes, it is important to invite stakeholders to create a set of industry best practices . The "Cloud Readiness Index" is designed to track the region's progress towards a complete spectrum of cloud computing-based infrastructures and services. By mapping the conditions and criteria required for successful implementation and uptake, we aim to identify potential bottlenecks that could slow adoption and threaten Asia's digital future.

Also, in surveying our members, there was a distinct gap in the market for this level of mapping of the policy, legal and commercial drivers of the cloud. While we have certainly drawn on the great work done by other trade associations, NGOs and other publicly available sources, what was lacking was a blending of this information to help our members, their customers and even policy makers to look at the cloud in a more holistic manner.
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What are you hoping to achieve with the Index?

A debate among key stakeholders in Asia that will ultimately lead to the removal of bottlenecks that slow cloud adoption.
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What conditions are you covering in the Index?

The attributes that comprise the first release of the index include:

1. Regulatory conditions

2. International connectivity

3. Data protection policy

4. Broadband quality

5. Government prioritization

6. Power grid quality

7. Internet filtering

8. Business efficiency index

9. Global risk

10. ICT development
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Why these 10 attributes?

They all affect how cloud computing products and services can be offered, delivered and consumed by the market. More attributes will be covered in future releases (see Roadmap below) but these 10 are a good starting point for the debate.
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What methodology have you used for the different attributes?

Each attribute has equal weight and we have used published metrics to evaluate the countries score for each metric.
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What are the Index attributes based on?

The Index is a 14 market study that brings together current and public data from sources such as World Economic Forum (WEF), International Telecommunications Union (ITU), Business Software Alliance (BSA), Oxford University, International Institute Management Development, Maplecroft Global Risk Atlas and Fault Lines, Telegeography and members of Asia Cloud Computing Association. For more details see below.
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1. Regulatory conditions

License requirement of cloud services and DC, Intellectual Property protection, lawful intercept for cloud content

Source: BSA

2. International connectivity

Bandwidth available for International connectivity; combined with the reciprocal of price per Gbps

Source: TeleGeography 2010

3. Data protection policy

Survey. Are cloud providers free from laws that penalize based on Nationality? Are there laws that protect user data disclosure?

Source: BSA

4. Broadband quality

Combining the Broadband Quality Score(up/down/latency) with broadband penetration figures for each country.

Source: Oxford University Broadband Survey

5. Government prioritization

Combination of Government ICT prioritization, Cloud RFI/RFP

Source: WEF-GITR, Asia Cloud Computing Association members

6. Power grid quality

Electricity supplies that are free of interruptions and shortages so that cloud services are delivered unimpeded

Source: WEF GlobalCompetitiveness Report 2010

7. Internet filtering

Incoming filtering of content, freedom of content flow without tarruf and net neutrality policy in place

Source: BSA

8. Business efficiency index

Based on five factors: productivity, labor market, finance, management practices, and attitudes and values.

Source: International Institute Management Development

9. Global risk

7 key risk areas: macroeconomic; security; governance; resource security; climate; pandemics; societal resilience

Source: Maplecroft Global Risk Atlas and Fault lines

10. ICT development

11 ICT indicators are included in the IDI (grouped by the three sub-indices: access, use, and skills).

Source: ITU 2010 - ICT Development Index (IDI)
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How reliable is the methodology?

Each attribute needed to be handled differently. In some cases it was one metric from the source listed that was normalized to be on a scale of ten. In other cases the metric is an average of a few parameters that are combined from one source. The only special attribute is government prioritization; it is a combination of a number of sources and information gathered from members of the association.
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What is the roadmap of the Index?

The purpose of the Index is to facilitate an ongoing discussion and to track the progress of a series of critical conditions required for cloud based services and solutions in the region. The first release does not cover all necessary conditions but it is a good platform for the initial debate and for gathering input for the next release, scheduled in the next six months. Attributes we are planning for the next release include:

- Government cloud incentives

- Environmental risks

- Green regulations for Data Centers

- Ecosystem development

- Local vs global provider level playing field

Beyond publishing a numerical index we want to plot cloud readiness vs cloud adoption for each country and analyze the different clusters.
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Why are not the U.S. and European countries included in the Index?

While the cloud is universal, much of the debate and discussion on the cloud is taking place in Europe and the US. This is not surprising given that many of the key vendors are from both those regions. But, what is clear is that Asia will continue to grow both as a cloud customer, but also the potential to be a cloud provider. Given the economic growth in this region it is important for Asian economies to begin to look not only at the opportunities for the cloud for their individual economies, but how the cloud an also help drive greater economic value in the broader region. The Index is our way to help prompt that conversation within industry, within governments, and hopefully between countries in Asia, to help drive economic and social outcomes through the harmonization of policies and laws that allows the cloud to meet its full potential.
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Why is the index important to the association and your members?

The Index fills a gap in the market for insights and information about how the momentum for the cloud in key markets. For members, it is vital to see how the legal, policy and commercial environments co-exist. Having this information provides a snapshot of the key drivers and concerns of customers and policy makers and where they can help inform better decisions.
BACK TO TOP 

Who can I talk to to learn more about the index?

Please contact  This email address is being protected from spambots. You need JavaScript enabled to view it.  
BACK TO TOP 

Who should we contact to publish the story behind the index?

Please contact  This email address is being protected from spambots. You need JavaScript enabled to view it.  
BACK TO TOP 

May we use the index in our marketing/publications?

Please contact  This email address is being protected from spambots. You need JavaScript enabled to view it.  
BACK TO TOP 

May we use the index in our product?

Please contact This email address is being protected from spambots. You need JavaScript enabled to view it.  
BACK TO TOP 

Why "Asia"?

The knowledge economy will fuel Asia's future and we think that cloud computing is the next great 'leveler' for the region, poised to help accelerate the momentum around trade and economic integration in Asia. But to realize this potential, the region needs to harmonize the policy and regulatory frameworks that will facilitate effective trade in digital information and services. There are also other regional challenges that need to be studied and addressed by stakeholders in the region.


Press Release

Association launches "Cloud Readiness Index" to track progress and identify bottlenecks that threaten Asia's future

Hong Kong, 21 June 2011 – The Asia Cloud Computing Association (Asia Cloud) is launching a "Cloud Readiness Index" designed to track the region's progress towards a complete spectrum of cloud computing-based infrastructures and services. By mapping the conditions and criteria required for successful implementation and uptake, the association aims to identify potential bottlenecks that could slow adoption and threaten Asia's digital future.

The new "Cloud Readiness Index" will analyse 10 key attributes critical to the deployment and use of cloud computing technology across 14 different countries. That includes the region's acknowledged economic engine, China, as well as Australia, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

To further support the discussion the association is also launching a Cloud Map on its web site that will graphically illustrate the current state of the cloud debate – charting and analyzing the issues, the stakeholders and influencers and how the debate is developing.

According to Bernie Trudel, Chairman of the Asia Cloud Computing Association and Cloud CTO at Cisco APAC, the new index will be particularly relevant to governments as they are charged with creating the conditions for success – in their countries, around the region and across the globe.

"National public policy makers are starting to understand the benefits of this new IT delivery model and how it can make their countries more competitive. However, they might not necessarily yet understand the issues that underpin cloud computing, or the impact that policy decisions, such as data privacy or intellectual property protection, can have on the success or otherwise of cloud computing," said Trudel.

The attributes that comprise the first release of the index include:

1. Regulatory conditions

2. International connectivity

3. Data protection policy

4. Broadband quality

5. Government prioritization

6. Power grid quality

7. Internet filtering

8. Business efficiency index

9. Global risk

10. ICT development

"Cloud computing is poised to help accelerate the momentum around trade and economic integration here in Asia. However, to realize this potential, the region needs to harmonize the policy and regulatory frameworks to facilitate effective trade in digital information and services. It is therefore necessary to have an active debate with an Asia focus. This is what Asia Cloud is aiming for in terms of its overall mission and with the Cloud Readiness Index," said Per Dahlberg, founder and Chief Executive Officer of the Association. "

Worldwide spending on cloud services is expected to reach US$150 billion by 2014 and spending on cloud computing is predicted to reach 30-40 per cent of IT budgets by 2013.

"The knowledge economy will fuel Asia's future. The cloud is the next great 'leveler'. A general-purpose technology, it lowers the barriers to entry, reduces costs by converting cap-ex to op-ex, and allows flexibility for scale and deployment," he said.

The impact of cloud computing is potentially huge. The Centre for Economics and Business Research states in a recent study that it will create 2.3 million new jobs across Europe's top five economies between 2010-2015. The World Economic Forum (WEF) says in its' 2011 report that many believe the impact to become equal to or exceed that of mobile technologies.

The Asia Cloud working group that developed the Cloud Readiness Index believes it could well incubate innovation right across the region's economy, especially in Asia's massive SME sector.

"Cloud Computing offers significant opportunities for local industries. It attracts investments and overseas businesses and provides a significant boost to e-government initiatives. Countries with the most insightful, transparent and fair regulatory environments will be the most successful in capitalizing on this new opportunity," said John Galligan, Vice Chairman of the working group and Regional Director, Internet Policy at Microsoft.

"The indications for Asia are good but there is still room for action with a recent research report revealing that Asia is lagging behind the US and Europe in cloud adoption. Moreover, while larger Asian businesses are embracing cloud services, small and medium enterprises (SMEs) are slow to embrace the cloud. There is a huge opportunity to help narrow this gap and Asia Cloud hopes that the new Cloud Readiness Index will help governments and businesses – large and small - to continue to capitalize on the opportunities that cloud computing offers," he said.


Press Release (Tokyo)

Asia's first "Cloud Readiness Index" shows mixed picture of regional potential for harnessing the power and economic benefits of cloud computing.

Japan in the lead, with Hong Kong, South Korea and Singapore following close behind

Tokyo – 7 September 2011 – Asia's first "Cloud Readiness Index," prepared and published by the Asia Cloud Computing Association, shows a mixed picture in terms of harnessing the power and economic benefits of cloud computing. The league table, which analyses 10 key attributes critical to the successful deployment and use of cloud computing technology in 14 countries across the region, shows that Japan is in the lead, with Hong Kong second and South Korea and Singapore following close behind in joint third place.

China, and the fellow economic giant, India are in 8th and 9th place respectively – reflecting the challenges these economies must overcome in order to speed adoption and enjoy a brighter, more prosperous digital 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. Additionally, cloud technologies promise to securely democratize data access – and in doing so, creating a myriad of value-add possibilities across Asia," said Bernie Trudel, Chairman of the Asia Cloud Computing Association and Cloud CTO at Cisco APAC.

Per Dahlberg, founder and CEO of the Association believes that to realize this potential in Asia, the region needs to harmonize policy and regulatory frameworks to promote effective trade in digital information and services. "Achieving that requires an active debate with an Asia focus. This is exactly what the new Cloud Readiness Index aims to stimulate," he said.

The "Cloud Readiness Index" is designed to track Asia's progress toward a complete spectrum of cloud computing-based infrastructures and services. By mapping the conditions and criteria required for successful implementation and uptake, the Association aims to identify potential bottlenecks that could slow adoption and threaten Asia's digital future.

The Index helps identify the gaps between policy, legal and commercial cloud drivers. This is achieved by leveraging the works of other trade associations, NGOs and publicly available sources in order to provide a tool for businesses, and even policy makers to look at the cloud in a more holistic manner.

The considerations that comprise the first release of the index focuses on are:

1. Regulatory conditions

2. International connectivity

3. Data protection policy

4. Broadband quality

5. Government prioritisation

6. Power grid quality

7. Internet filtering

8. Business efficiency index

9. Global risk

10. ICT development

Countries and the cloud

No.1 Despite some concerns around global risk due to earthquake fault lines and the efficiency of doing business, Japan, the world's third largest economy, has proven itself well and truly ready to maximize the opportunities from Cloud Computing. A mature IT market, it has established itself with a set of known regulations and conditions that encourage Cloud Computing within Japan and is therefore posed for significant growth in the future.

No.2 Hong Kong is increasingly becoming the North Asia data hub with many cloud service providers setting up data centers in the SAR. World leading broadband penetration and excellent international connectivity, coupled with good policy governance, provides a strong platform for cloud adoption by HK government and local businesses.

No.3 Joint No.3 South Korea has an ambitious cloud strategy, with the Government investing US$500m to incubate the cloud for both public and private sector cloud initiatives, and raising their investment to US$2billion by 2014. Their aim is to capture 10% of the global cloud market by 2014 and achieve a 50% reduction in IT infrastructure op-ex in the public sector by 2015.

The other joint No.3 is Singapore, and it is apparent that its Infocomm Development Authority (IDA) and other government agencies understand the significance of the cloud to economic competitiveness. While Singapore scored well in most categories, the development of its data protection law will be an important accelerator to its regional data hosting ambitions.

No.8 China is an emerging economic powerhouse with the world's largest online population and with an increasing rate of growth in Cloud Computing. Restrictive data protection laws currently prevent the building of a global Cloud Computing industry in China. However, recent announcements by the government to invest US$154.5 billion to develop cloud computing hubs may well see China improve its index rating in the near future.

No.9 India, like its economy, is forecast to enjoy spectacular cloud growth. However, there are significant challenges at present for India taking on a leading role across the region for Cloud Computing including the quality of its network, broadband and power grid capabilities. An improved and clearer regulatory situation in India would also make India more attractive to Cloud Computing customers and service providers.

Regional synergy the key to long-term cloud success

"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 'leveler' for the region, poised to help accelerate the momentum around trade," he added.