The OzHub Coalition: Seizing the Opportunity, Overcoming Constraints

Canberra, October 12, 2011

A group of leading cloud computing providers have joined with Australia's telecommunications consumer representative body in an initiative to build local consumer and business confidence in cloud computing.

The new alliance, known as OzHub, seeks to establish a regulation framework to promote good business practices and greater transparency to consumers about crucial issues such as where their personal data are held. The OzHub alliance founder members are Macquarie Telecom, Fujitsu, InfoPlex and VMware. Discussions are under way with future partners.

The alliance hopes to work constructively with the Australian Communications Consumer Action Network (ACCAN), the peak body for consumers and organisations to better understand consumer needs, and develop a framework and set of protocols to address them.

Innovation Minister Senator Kim Carr welcomed the initiative, saying it was important that consumers and businesses be protected.

“I commend the members of the OzHub Coalition for taking the initiative to establish a regulation framework promoting good business practices in the provision of cloud computing services,” Senator Carr said.

OzHub founder member Macquarie Telecom CEO David Tudehope said: “Creating new levels of consumer and business confidence in the cloud will have the additional benefit of helping position Australia as a national and regional hosting centre, boosting jobs and productivity, and attracting global investment.”

The CEO of Fujitsu ANZ, Mike Foster, said: “The OzHub Coalition will focus on developing the opportunities and overcoming the constraints identified in the new research from Lateral Economics, ‘The Potential for cloud Computing Services in Australia’.

“These include a number of challenges that can currently constrain the adoption of cloud-based services by Australian companies which, until recently, have had to go offshore.”

Many organisations already choose to store their data in Australia for two reasons, the Managing Director of VMware ANZ, Duncan Bennet said. “Firstly, many Australian companies could soon be compelled by legislation to store their data in Australia.

“In addition, some overseas governments have legal powers to gain access to commercial data, the US Patriot Act being a prime example. For Australian companies, having access to a local Australian cloud provider addresses their data residency concerns and reduces the risks and constraints,” Mr Bennet said.

InfoPlex General Manager Matthew Madden believes the OzHub initiative will also promote improvements in other infrastructure, such as Australia’s international Internet links.

“Investing in Australia’s cloud services and management expertise will accelerate investment in the links between Australia and the rest of the world - and to Asia in particular. Infoplex is certain that the OzHub initiative will help increase competition and attract additional new investment in new services that can be hosted in the cloud,” Mr Madden concluded.

In the near future, The OzHub Coalition will be releasing a self-regulatory framework and accreditation protocols, which will be made publicly available.

Note to editors: The Lateral Economics report ‘The Potential for Cloud Computing Services in Australia’, by Nicholas Gruen and Simon Molloy, can be downloaded from the Macquarie Telecom web site. Please visit: www.macquarietelecom.com/ozhub