Cloud computing has become a buzz word in the last few years. The idea of having easy access to powerful IT solutions without the huge cost implications of IT infrastructure is indeed an impelling value proposition. The technology allows storage of data and access to software on a pay-per-use model, thus helping companies cut costs. It also promises to revolutionise e-governance initiatives and fast-track healthcare and education delivery in the country.

The chief information officers, or CIOs, of global companies are already planning ‘asset-light IT architectures’ for the future. IT majors such as IBM and SAP are investing heavily in developing cloud infrastructure and capabilities.

The think-tank of Indian IT industry should ensure that we do not lose our sheen and rest on past laurels. The Government should take a holistic view of this sector and formulate policies to safeguard its interests by enabling a level playing field.

The Government has been mulling ways to deliver e-governance services through cloud-based IT services. This has opened up a whole new market for IT players. As cloud projects can enable quick and easy delivery of IT resources, it can help accelerate growth in the SME segment and generate employment.

A carefully deliberated cloud strategy is a must to ensure the country accrues maximum benefits while minimising risks. In essence, the Government should play a pivotal role in helping Indian entities take advantage of the cloud revolution for economic growth. One of the biggest challenges posed by the cloud’s fluid architecture is data security, which calls for amendments in current laws to prescribe security measures. Another key factor for the success of cloud-based products and services is the availability, location, security and quality of data centres. This is a key requirement for projecting our capabilities to global clients.

To develop the sector further, cloud should be categorised as ‘infrastructure’ — similar to telecom and education. Infrastructure development should become a key government initiative that will provide the land, power, technology and human resources to establish India as a data management hub. Currently, India lags developed countries in data centres. The economic benefits of hosting data management centres are huge, and the cloud policy should provide the vision for it. It should also take into account data sovereignty and governance issues, and study global practices in resolving jurisdictional conflicts. It should look into the changes needed in an organisation’s security practices to facilitate periodic review/ audit of critical cloud infrastructure.

The policy should also formulate a suitable mechanism allowing law enforcement agencies to collect and analyse personal and electronic data under existing laws. It should cover aspects such as access, storage format and information sharing, retention period, content regulation and regular reporting.

Last but not the least, the Government should focus on accelerating the adoption of cloud computing in India, especially for e-governance projects, by providing tax breaks or other incentives to cloud players. This will enable Indian companies to develop an effective cloud ecosystem and prove our credentials to the world.

(Pradeep Udhas is Partner, KPMG)

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