Cloud Services in Japan

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1 Cloud Services in Japan November 2011 Kazutaka NAKAMIZO ICT Strategy Policy Division Global ICT Strategy Bureau Ministry of Internal Affairs and Communications(MIC), JAPAN

2 Size of cloud services 1 - In 2010, the cloud services market in Japan was worth 4.5 billion U.S. dollars (363 billion yen). - In 2015, It will increase more than six times in size to reach approximately 27.9 billion U.S. dollars (2.3 trillion yen). - The market is expected to expand by approximately 6.9 billion U.S. dollars (560 billion yen) through policy support. (billion yen) 2,500 2,259 2,000 1,500 1, , , , New market creation effect through policy support IaaS( 新 (New) 規 ) PaaS( 新 (New) 規 ) SaaS( 新 (New) 規 ) IaaS PaaS SaaS

3 Benefits and challenges of cloud computing 2 benefits disadvantages /challenges <Consumer/user side> Economical/affordable Much volume of data/information available Accessible anywhere <Business side> Cost reduction Easy to launch new business Scalability/flexibility Business continuity Black box System data management invisible necessity of ensuring compliance Centralized Management system much risk of hacking need a high level of security

4 Potential of Cloud Computing 3 Possibilities of Cloud Computing 1 equal footing condition Easy to start new business for small and medium sized companies/venture companies Generating innovative and creative new activities 2 A variety of information shared/gathered Information useful for various fields(e.g. Medical services, education, sightseeing) Enjoying information from internet (e.g. music, animated film) 3 data compiled/value added Optimization of energy supply (Smart Grid) Utilization of statistical information Generation of New Market Innovation

5 Demand for cloud services (Survey result) 4 Utilization of Cloud Services (Answers include the companies with specific plans to introduce cloud services) Large Companies 50.0% SMEs 27.0% Service used by the companies which have already introduced cloud services Servers 44.9% Information Sharing 43.4% Ensuring scalability File storage 36.5% e mail system 33.1% Factors hindering introduction of cloud services Cost reduction clarification Security Operation systems Elimination of perception gap Post evaluation on introduction of cloud services satisfactory 21.6% 92.3% almost satisfactory 70.7% Cost reduction 47.9% Service Credibility 31.9% Agility 27.5% Scalability 24.6% (Note) This survey was conducted in November 2009 for executives (500 companies) eligible for decision making on introduction of information systems.

6 Smart Cloud Strategy (May 2010) 5 Utilization Strategy Promotion of full utilization of ICT Environmental arrangements for diffusion of cloud services Assistance in creation of new cloud services Global expansion of cloud services Technology Strategy Promotion of research and development of next generation cloud technology Promotion of standardization International Strategy Compose a consensus to formulate international rules using international vehicles such as APEC, OECD, and ITU Hold dialogue on policies under the cooperation of industries, universities, and the government

7 Utilization Strategy 6 Promotion of introduction of cloud services within the government Development of Kasumigaseki Cloud & Local Government Cloud Assist diffusion of cloud services in such areas as medical care, education and agriculture Co-development of new cloud solutions in cooperation with Asian countries Promote development of Smart Cloud Infrastructure to realize more sophisticated operation of social infrastructure by utilizing cloud services Assist in developing Cloud Service Usage Guidelines for Consumers (July 2011)

8 Technology Strategy 7 R&D Technology for collection, extraction, accumulation and modeling of a vast majority of real-time streaming data and its optimization at times when conditions change Technology that enhances security and reliability Technology that promotes Green ICT --- Green by ICT : green cloud data centers --- Green of ICT Standardization User-centric approach is required. Ensuring service & technology innovation Focus should be put on: --- SLA --- Security level --- Interoperability for hybrid cloud services

9 International Strategy 8 With the widespread use of cloud services, case storing and processing of data overseas may increase. Issues to be discussed at international fora (examples) Jurisdiction over databases stored in other countries (eg. privacy protection act) Dispute settlement mechanism Countermeasures against harmful information Possibility of government intervention with respect to private-sector data Ownership of IPRs regarding data stored on a cloud data center in other countries Towards consensus building Cooperation between public and private sectors ITU, OECD, APEC and other international fora Bilateral consultations

10 Recent Initiatives in Japan 9 <Formulation of A Guide for Protection of Cloud Service Users and Securing of Compliance> Guide for Protection of Cloud Service Users and Securing of Compliance (July, 2011) - Securing Protection of Trade Secrets and Compliance In Using Cloud Services - Clarifying important matters to be confirmed beforehand prior to making the contract <Standardization of Technical Requirements For Inter-cloud Collaboration> - Research and development has been promoted toward developing cloud computing technology in which plural cloud, including medium and small, can collaborate in highly reliable, high-quality, power-conserving conditions. - On the basis of the results of the research and development, a proposal was submitted to ITU-T in January, 2011, for technical requirements for functionality for collaborating across plural cloud systems. - This proposal has been officially incorporated as an agenda candidate at ITU-T. <Global Dialogue on Cloud Computing> - Concerning cloud computing, open data distribution across borders is important, and discussion with many countries is vital.

11 Japan Cloud Consortium 10 - Launched in December An industry-academia-government collaboration mode -Lessons from the great disaster in March, and recovery Japan Cloud Consortium Medical care free membership More than 340 companies General meeting Secretarial Board (Secretariat : Nippon Keidanren) Education Educational Cloud WG Agricultural Cloud WG Health / Medical cloud WG Tourism Cloud WG Fishery Cloud WG Matching Assistance to companies NICT IPA ASPIC GICTF Related organization Assistance to residents

12 Thank you very much! Kazutaka NAKAMIZO

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