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Idc policy


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Presentation to MIS Asia Data Center F

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Idc policy

  1. 1. Policy Issues for Internet Data Center Development in Hong Kong Charles Mok Chairman, Internet Society Hong Kong Honorary Chairman, Hong Kong Information Technology Federation July 15 2010
  2. 2. Hong Kong Government Position on Data Centers <ul><li>July 2010: Office of Government Chief Information Officer (OGCIO) </li></ul><ul><li>Paper to Legislative Council: Facilitating a Digital Economy, and Promoting Technological Innovation, Cooperation and Trade </li></ul><ul><li>Data centres are part of the essential infrastructure to support Hong Kong's industries </li></ul><ul><li>Data centres services can provide a good platform for cloud computing and attract more on-line businesses to Hong Kong </li></ul>
  3. 3. Hong Kong Government Position on Data Centers <ul><li>Hong Kong is an excellent location for data centres because: </li></ul><ul><ul><li>Proximity to the Mainland </li></ul></ul><ul><ul><li>Conducive business environment </li></ul></ul><ul><ul><li>Stable government </li></ul></ul><ul><ul><li>Transparent and independent judicial system </li></ul></ul><ul><ul><li>Reliable power supply </li></ul></ul><ul><ul><li>Sound telecom infrastructure </li></ul></ul><ul><ul><li>Low risk of natural disasters </li></ul></ul>
  4. 4. So, everything is fine. Right? <ul><li>From the users' point of view </li></ul><ul><ul><li>Lack of supply </li></ul></ul><ul><ul><li>High cost </li></ul></ul><ul><li>From the IDC operators' point of view </li></ul><ul><ul><li>Land: low supply and high cost </li></ul></ul><ul><ul><li>Infrastructure – e.g. power grid etc. </li></ul></ul><ul><ul><li>Regional competition </li></ul></ul>
  5. 5. How did we get here? <ul><li>Report on Economic Summit on 'China's 11 th Five Years Plan and the Development of Hong Kong' (Jan 2007) </li></ul><ul><ul><li>Hong Kong should actively promote overseas its numerous advantages that are conducive to the development of data services, including a stable and secure electricity supply network, low-cost and reliable telecommunications service as well as state-of-the-art information infrastructure and a sound legal system, and strive to be the key data center in the region... </li></ul></ul>
  6. 6. It was said before... <ul><ul><li>...To achieve this goal, the HKSARG should review the existing land policy to allow service providers to set up the relevant equipment or facilities in industrial premises without requiring them to make special application or pay additional fees. </li></ul></ul><ul><ul><li>The government policy bureau was supposed to conduct the relevant review in 2007. </li></ul></ul>
  7. 7. Report on IDC development (2009) <ul><li>Innovation and Technology Commission conducted a consultancy study and presented a report finally in 2009: </li></ul><ul><ul><li>Data center market is i n 'equilibrium' </li></ul></ul><ul><ul><li>Land allocated by Lands Department for auction was not well-received by the industry </li></ul></ul><ul><ul><li>Hong Kong Science and Technology Parks Corp will put out some facilities in the Industrial Estates (government-owned land) for request for proposals. </li></ul></ul><ul><ul><li>So, everything is alright! Nothing else needs to be done! </li></ul></ul>
  8. 8. The reality on land supply <ul><li>Issues with private land supply </li></ul><ul><ul><li>Existing factory/warehouses buildings </li></ul></ul><ul><ul><li>Inappropriate/insufficient infrastructure </li></ul></ul><ul><ul><li>Leasing issues </li></ul></ul><ul><ul><li>Location problems </li></ul></ul><ul><li>Issues with public land supply in Industrial Estates </li></ul><ul><ul><li>Limitations on sub-leasing </li></ul></ul><ul><ul><li>Lack of consistent supply and inconsistent policies </li></ul></ul><ul><ul><li>Unfair competition/indirectly subsidizing </li></ul></ul>
  9. 9. The next piecemeal policy update... <ul><li>New Initiative from Policy Address (2009): </li></ul><ul><ul><li>Facilitating industrial buildings to modify land use </li></ul></ul><ul><ul><li>Reality: </li></ul></ul><ul><ul><ul><li>What the industry players (including data centers) need is one-stop service </li></ul></ul></ul><ul><ul><ul><li>Other departments (than Lands Dept) are actually not 'facilitating' </li></ul></ul></ul><ul><li>We have come full circle and nothing has hardly changed. </li></ul>
  10. 10. Looking ahead <ul><li>The opportunities are obvious </li></ul><ul><ul><li>'China's Internet data center' ( example ) </li></ul></ul><ul><ul><li>Cloud computing and large-scale databases </li></ul></ul><ul><ul><li>More underseas cable </li></ul></ul><ul><li>Losing out on these opportunities will be costly </li></ul><ul><li>Meanwhile, our competitors are moving ahead </li></ul>
  11. 11. We are at a critical stage... <ul><li>What we need from official policy and government support are: </li></ul><ul><ul><li>Fair and consistent policies on land and other issues </li></ul></ul><ul><ul><li>Improvement on infrastructure support, e.g. electricity </li></ul></ul><ul><li>OGCIO is conducting another consultancy study now </li></ul><ul><ul><li>Will they finally, really get the message? </li></ul></ul><ul><ul><li>Can we get coordinated policy support? </li></ul></ul>
  12. 12. <ul><li>莫乃光 Charles Mok </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>