Yangon, Myanmar, 28-29 November 2013

Cloud Computing Standardization Initiatives in China: Economic and

institutional considerations

Nir KshetriProfessor, The University of North

Carolina—Greensboronbkshetr@uncg.edu

ITU Regional Workshop on Bridging the Standardization Gap

(Yangon, Myanmar, 28-29 November 2013)

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Cloud Standards in China

CCID Consulting (2010): Cloud standards and cloud security: urgent issues facing Chinese cloud industry

not unique to China.

Cloud standards: infant stage. A lack of standards: difficult to regulate the development.

Technical standards, service standards and standards of quality assurance of public, private and mixed cloud

Yangon, Myanmar, 28-29 November 2013

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China’s International Initiatives Related to Cloud Standards

2011: China Life and China Unicom--Steering Committee of Open Data Center Alliance:

“an independent consortium ….. aimed at providing a unified vision for long term data center requirements”

Other Chinese membersChina Petroleum and Chemical CorporationChina Telecom Beijing China Power Information Technology

Yangon, Myanmar, 28-29 November 2013

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DMTF and CESI partnership

Jul. 2012: Distributed Management Task Force (DMTF), and China Electronics Standardization Institute (CESI): adoption of DMTF standards. DMTF to make standards meet requirements outlined by CESI. CESI: encourage Chinese companies/ univ. and non-profit orgs to adopt DMTF standards

Cloud Infrastructure Management Interface (CIMI)Open Virtualization Format (OVF) DMTF standards for Cloud auditing and software license management

Yangon, Myanmar, 28-29 November 2013

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Lesson from Past IT Initiatives

China’s healthcare industry: “Information Island”.Many large hospitals completed initial IT initiatives in the mid-2000s

fragmentation and incompatibility of information systems between departmentsinability to communicate and share data.

A reason for the slow diffusion of EMR: lack of a single standard.

Yangon, Myanmar, 28-29 November 2013

Definition of Cloud-related Concepts

Chinese Communications Standards Association (CCSA) Most parts in NIST definition acceptedTechnical reference materials for virtualization, cloud security, cloud storage and others developed by

DMTSStorage Networking Industry Association (SNIA)Cloud Security Alliance (CSA)ITU

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Definition of Cloud-related Concepts

MIIT’s Telecommunications Research Institute: The removal of “on-demand self-service” as a characteristic Possibility of additional layer of mgmt/control.

Extra technical requirements for businesses.

Different from the NIST definition-three deployment models (public, private, and hybrid)No “community cloud”: shared by multiple organizations with shared missions

Distributed computing resources like CC employed in Chinese scientific research community.

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Kshetri, Palvia and Dai (2011).

The State’s Involvement in the Economy

China-specific standards requirements even if not adopted or mandated: Likely to be enforced for municipal/ provincial government contractsGovernment’s entrenchment in the economy

Large/important segment of the Chinese market

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Lack of Clear Regulations/Transparency

Major concerns for businesses: lack of clear government standards/regulations and data privacy concernsUncertainty: regulations’ evolution without transparency/outside inputSome degree of foreign participation in

CESINITSTC SOACCSA standards groupsOften not as full voting members.

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Lack of Clear Regulations/Transparency

Some groups under NITSTC: no foreign companies’ participation even as observersIn industry groups that allow foreign participation

Degree of influence low/uncertain

Low degree of transparency/ impartiality compared to the development of most international cloud computing standards.

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Strength of Nationalism1970s, the CCP: standardization to ‘‘quickly build a socialist economy ….to ensure quality, advance performance …’’

Since1980s: attempts to developChinese computer OS: CCDOSDatabase management systemNetwork communication systemMiddleware products.

1990s: Aggressive actions in DVD and CD standards

Chinese cloud policies: create “indigenous innovation” requirements for domestic sales:

protect Chinese enterprises from foreign competition.

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Perception of National Security and Economic Threat

Chinese officials/ Chinese business leaders: “[H]ighly confidential data about the Chinese economy, military, and government, as well as crucial technology and science developments, can be stolen or accidentally disclosed to foreign competitors, or end up in the hands of groups or individuals who seek to overturn the national government.”

L. Ann Ragland, J. McReynolds, M. Southerland & J. Mulvenon. Red Cloud Rising: Cloud Computing in China, Research Report Prepared on Behalf of the U.S.-China Economic and Security Review Commission, September 5, 2013

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Discussion and Implications

China’s attempt to create domestic standards in many other ICT industries

Lesson from largely unsuccessful initiatives in the past (e.g., CCDOS in 1982).

Lack of mature technological capabilities/ technical standards/requirements to drive technology development.MIIT 2012: slow development of cloud computing standards

lack of participation of mainstream cloud providers.

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Discussion and Implications

Distrust of foreign providers Complaint regarding protectionist measures: hamper foreign participationForeign corporations: increase in costExtra technical requirements may reduce foreign firms’ competitiveness

Adapt products to China-specific standards Requirement to custom-design for China

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Conclusions and Recommendations

A complex interaction of economic and institutional factors in playTricky trade off for the Chinese regulators Many challenges confronting domestic and foreign companiesOffers a number of relevant lessonsfor the cloud standardization initiatives for other developing countries.

17Yangon, Myanmar, 28-29 November 2013