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Cloud Computing Report Sees Opportunities with Federal Government Action

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Microsoft Cloud Computing Image of Man with Computer looking at cloudy skyA report released by the Australian Academy of Technological Sciences and Engineering (ATSE) last week (October 14) identified valuable opportunities for Australian governments, business and researchers in “cloud” computing – a business estimated to be worth $US20 billion world-wide and growing rapidly.

The Report - Cloud Computing: Opportunities and Challenges for Australia– notes that governments, businesses and researchers can all benefit from the adoption of cloud computing services and that governments can use the advantages of cloud computing to provide services more efficiently to a broad range of customers.

The Report concluded that the use of cloud services will raise new issues in respect of privacy, security, trust, data transfer capacity and lock-in with service providers. It suggested that Privacy legislation that was developed prior to the emergence of cloud computing would need to be reviewed and that trust arrangements between service providers and users of cloud services may need new and additional elements to cover all critical interactions.

Data protection will naturally be a major focus for service providers and clear delineation of responsibility and risk will need to be negotiated and understood as between service providers and users.

Importantly the Report notes that network pricing will be an important issue in determining the adoption of cloud based services in Australia and that at present Australia's broadband prices are significantly higher than the UK - the OECD leader.

The Report made seven recommendations including that the Commonwealth Government's Commercialisation Australia Program, which assists researchers, entrepreneurs and innovative companies to convert ideas into successful commercial ventures, should actively encourage new businesses that are cloud-focused in their Internet-scale applications.

The ATSE formed a Working Group on Cloud Computing to advise the Academy on this project. Mr Gordon Bell, FTSE of Microsoft Research was a member of this Working Group.