1. For discussion Paper No. 2/2011
on 22 March 2011
DIGITAL 21 STRATEGY ADVISORY COMMITTEE
Adoption of Cloud Computing Model in Government
Purpose
The Government will be adopting the Cloud Computing 1
Model to meet rising public demands and community expectations on
e-government services and reap the benefits of emerging technologies.
This note highlights the key features of our strategy.
Government’s Strategy for Cloud Computing Adoption
2. We plan to adopt the following strategy in re-provisioning the
central IT facilities in building the Government Cloud environment. We
will -
(a) adopt, on an incremental basis, Cloud Computing for the
provision of e-government services;
(b) develop a Software-as-a-Service (SaaS) portfolio of
government applications/services that are readily amenable to
the Cloud service approach; and
(c) establish the Platform-as-a-Service (PaaS) and
Infrastructure-as-a-Service (IaaS) capabilities in the
Government coherently to provide the shared service
platforms, infrastructure and information technology (IT)
capacities to support this SaaS portfolio.
1
Cloud Computing is a model for enabling convenient, on-demand network access to a shared
pool of configurable computing resources (e.g. networks, servers, storage, applications and
services) that can be rapidly provisioned and released with minimal management effort or
service provider interaction. Cloud Computing comprises three layers from a user perspective:
Software as a Service, Platform as a Service and Infrastructure as a Service.
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2. 3. Cloud Computing is a global trend affecting the IT industry
from both the supplier and user angles. In the course of formulation of the
Pan-government IT Strategy2, we have examined strategies, practices and
initiatives of other economies, including Australia, Mainland of China,
Singapore, the United Kingdom and the United States. Different
governments have developed their plans for the gradual adoption of Cloud
services, as they see this as an opportunity to improve business outcomes
through eliminating redundancy, increasing agility and providing IT
services at a potentially lower cost. It is also apparent that major IT
suppliers, at both international and local levels, have started to reposition
their products and services to operate under a Cloud-based environment.
Proposed Action Plan
4. We propose to establish the Government Cloud environment
that comprises three service layers -
(a) Software as a Service (SaaS): We will develop shared
services for a portfolio of applications/services, including the
core systems/services to support electronic information
management (including collaborative working and electronic
record keeping), human resources management, electronic
procurement and support for paper-less meetings. These
common shared services will be used by all government
bureaux/departments (B/Ds).
(b) Platform as a Service (PaaS): We will develop a new
platform for supporting common e-government applications,
and a new user directory service for unified identity
management, communications and collaboration that
complements the government electronic messaging system.
2
The Office of the Government Chief Information Officer (OGCIO) has formulated a
Pan-government IT Strategy comprising of five strategic dimensions, namely Governance on IT
Investments, IT-enabled Business Transformation, Information and Data Management,
Technology Architecture and Infrastructure, and Human Resources for the Government IT
Profession.
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3. (c) Infrastructure as a Service (IaaS): We will establish the
underlying infrastructure including servers, networks, storage
and operating systems on a flexible and virtualised basis.
The first batch of government IaaS initiatives includes
establishing a virtualised environment in the Government
Central Computer Centre, which consists of data centres in
Wanchai, Tsuen Wan and Sai Kung.
5. The proposed Government Cloud environment will include an
“in-house private Cloud” owned and operated by the Government, an
“outsourced private Cloud” comprising facilities dedicated to the
Government in secure data centres operated by contractors, and “public
Cloud” for generic services where we do not need or have less control over
how the services are provided. An over-arching consideration in
determining whether applications and/or data are to be placed in private,
public or hybrid Clouds is the level of sensitivity and confidentiality of the
data and information involved. A high-level programme timetable for
implementing the above initiatives is given in the Annex.
Anticipated Benefits
6. The proposed programme for establishing a Government
Cloud environment is an enabler for the transformation and continuous
improvement of public service delivery and support to the underpinning
government policies. It offers the opportunity for the Government to
increase the value that the community enjoys from the more extensive use
of IT in the Government, and also addresses the rising expectations of
different stakeholders (including citizens and Government’s internal users)
for better public service delivery.
Benefits to the Community
7. To the community, one of the benefits of deploying the
government central IT services to the Cloud Computing model is the
overall agility in providing public services and enhancing productivity in
implementing government policies. In addition, this programme will
ensure convenient and coherent customer experience across different
service channels, and create the option to support additional joined-up
channels in future.
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4. Benefits to the Government
8. The Cloud approach aims to provide synergy and new
opportunities for data/system functions sharing and re-use, particularly for
processes straddling across government B/Ds for further improving the
efficiency and effectiveness of the government workforce. It enables
implementers to focus only on innovations that bring real business value
instead of the platform set-up and integration related work. The
deployment of IaaS can also lead to cost savings in both capital and
recurrent expenditures on computing resources, because workload can be
allocated flexibly and dynamically to the available computer systems, and
less equipment can be used. This also demonstrates the Government’s
exemplary role in the reduction of overall carbon footprints and
environmental impact.
Benefits to the IT Industry
9. For the IT industry, this programme is expected to offer
different opportunities for local service providers to provide respective
services under the Cloud Computing model. The skills, infrastructures
and business models established in the development process can also foster
the further development of the IT industry into other areas of local and
external economies.
Matters Requiring Attention
10. Migration to a cloud-based environment is not risk-free. We
need to revisit how it could affect procurement and funding models and
associated contract terms and conditions, how it could affect business and
service continuity, how it could affect information security and data
privacy, and how we can facilitate the interoperability of cloud services, etc.
Whilst many of the issues would not have ready solutions, we see a need
for Government to lead by example, embrace the changes and facilitate
industry development in this critical development. Whilst committing to
adopting a cloud-regime on an incremental basis for the provision of
central IT services, we will work closely with the industry to share
experience and align options for enhancing the quality and sustainability of
the Government Cloud environment.
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5. Indicative Financial Implications
11. The anticipated capital expenditure for implementing the
identified major initiatives as stated in the Annex is in the order of $200
million to $300 million. We will adopt an incremental approach and
conduct periodic review to confirm the benefits inherent in the new service
model, identify any new issues that require further adjustments to suit
Government’s requirements, and also gear up the local IT market to
provide the necessary products and services.
Way Forward
12. We will re-provision the government central IT services and
facilities to run under a Government Cloud environment and support the
identified major IT initiatives in an incremental manner. The Government
Cloud environment and services will be made available to different
government B/Ds, so that they can execute their own IT-enabled change
initiatives in a more agile, cost-effective and joined-up manner.
13. We will work closely with the Hong Kong Science and
Technology Parks Corporation, the Applied Science and Technology
Research Institute, the Hong Kong Cyberport Management Company
Limited, and other stakeholders to make sure the industry and the
Government are moving in tandem to develop a cloud-regime most fitting
for Hong Kong as a regional ICT hub.
Office of the Government Chief Information Officer
Commerce and Economic Development Bureau
March 2011
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6. Annex
High Level Programme Timetable
Year Major Milestones
2011 Complete the review of the e-Procurement Pilot
Programme and plan for implementing similar
programmes on a more government-wide scale.
Make ready a procurement arrangement for selected
public Cloud services for use by government bureaux
and departments.
Establish a virtualised infrastructure in the
Government Central Computer Centre.
2012 Establish common facilities for paper-less meetings in
government bureaux and departments.
Implement the first batch of shared services for
Electronic Information Management.
Establish a new hosting platform for e-government
applications (by phases up to 2015).
By end of 2012, we expect the mainstream approach
for applicable IT service provision will be based on
the Cloud Computing model, by which time the
relevant computerisation procedures will be adapted to
be in line with that model.
2013 Implement the first batch of shared services for
Human Resource Management.
Conduct a review on the further deployment of Cloud
Computing in the Government.
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