China to invest US$154 billion in cloud computing

China is set to pour US$154 billion to develop cloud computing hubs, according to Asia's first "Cloud Readiness Index," prepared and published by the Asia Cloud Computing Association.

Although restrictive data protection laws are preventing the building of a global Cloud Computing industry in China, this investment will help the nation improve its index rating in the near future.

The Index shows that a large number of cloud service providers are setting up data centres in Hong Kong making it the North Asia data hub.

The South Korean government has also decided to invest US$500m in both public and private sector cloud initiatives, and intends to raise their investment to US$2 billion by 2014.

"Technology has always been a great enabler of opportunity for business, communities and citizens. Cloud technologies offer the potential for lowering technology costs and creating time to market advantages," said Bernie Trudel, chairman of the Asia Cloud Computing Association and Cloud CTO at Cisco APAC. "Additionally, cloud technologies promise to securely democratise data access - and in doing so, create a myriad value-add possibilities across Asia."