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The country needs legislation for cloud technologies

11/ 06/ 2020
  Draft law No.2655 on Cloud Services is the first legislative document that regulates the field of cloud technologies in Ukraine. It was registered last year and includes the rules of access to cloud resources, data protection in the cloud, backup conditions, etc. The document provides for the European principle of Cloud First, according to which public authorities should prioritize cloud services in procurement. This principle will balance the conditions of cloud service providers and traditional physical servers, significantly save budget costs in this area and make the procurement process more transparent and less corrupt due to the availability of complete information on prices online, no dependence on the same providers, etc. . . During the total digitalization of services, it is especially important to have legislation for cloud services to strengthen the data protection and optimize government procurement spending on IT. For the three quarters of 2019, government spending on IT procurement increased by 22% compared to the same period in 2018, and it keeps increasing every year. Thus, cloud solutions will help optimize expenditures. After all, the purchase of cloud services does not require constant updating of equipment and the purchase of new expensive hardware to increase capacity and the cost of its maintenance. With the use of the cloud, the state will pay only for the actual amount of services consumed, and not purchased with no extras. According to The Economist, the volume of digital information is increasing tenfold every five years. Given the growth rate and preliminary estimates of experts regarding Ukraine, in the absence of radical changes in the structure and dynamics of procurement, the total government spending on IT procurement in the period 2020-2024 will reach UAH 100 billion (in 2018 this amount was UAH 15.8 billion UAH, and the cost of cloud technologies was only 0.2%). In 2017, the amount was UAH 9.8 billion. In case of the partial implementation of the Cloud First strategy (approximately 50% of IT needs will be covered with cloud services, not capital investment), and the total savings can reach UAH 40 billion for 2020-2024.  It is worth noting that since 2011 the leading countries (USA, UK, Germany, Singapore, India, Republic of Korea, Australia, Canada, Saudi Arabia) have started the implementation of a digital transformation strategy, one aspect of which is the Cloud-First Strategy. For example, the introduction of cloud technologies by government agencies in the UK (model G-Cloud - government cloud) has reduced government spending on digital transformation and information technology by 3.56 billion pounds from 2012 to 2015. The European Business Association supports draft law No.2655 On Cloud Services and urges the Verkhovna Rada to consider and adopt a document at the next meeting to accelerate the digital transformation of the country and redirect the savings to areas strategically important for the countrys development.   

Draft law No.2655 on Cloud Services is the first legislative document that regulates the field of cloud technologies in Ukraine. It was registered last year and includes the rules of access to cloud resources, data protection in the cloud, backup conditions, etc.

The document provides for the European principle of Cloud First, according to which public authorities should prioritize cloud services in procurement. This principle will balance the conditions of cloud service providers and traditional physical servers, significantly save budget costs in this area and make the procurement process more transparent and less corrupt due to the availability of complete information on prices online, no dependence on the same providers, etc.

During the total digitalization of services, it is especially important to have legislation for cloud services to strengthen the data protection and optimize government procurement spending on IT. For the three quarters of 2019, government spending on IT procurement increased by 22% compared to the same period in 2018, and it keeps increasing every year. Thus, cloud solutions will help optimize expenditures. After all, the purchase of cloud services does not require constant updating of equipment and the purchase of new expensive hardware to increase capacity and the cost of its maintenance. With the use of the cloud, the state will pay only for the actual amount of services consumed, and not purchased with no extras.

According to The Economist, the volume of digital information is increasing tenfold every five years. Given the growth rate and preliminary estimates of experts regarding Ukraine, in the absence of radical changes in the structure and dynamics of procurement, the total government spending on IT procurement in the period 2020-2024 will reach UAH 100 billion (in 2018 this amount was UAH 15.8 billion UAH, and the cost of cloud technologies was only 0.2%). In 2017, the amount was UAH 9.8 billion. In case of the partial implementation of the Cloud First strategy (approximately 50% of IT needs will be covered with cloud services, not capital investment), and the total savings can reach UAH 40 billion for 2020-2024. 

It is worth noting that since 2011 the leading countries (USA, UK, Germany, Singapore, India, Republic of Korea, Australia, Canada, Saudi Arabia) have started the implementation of a digital transformation strategy, one aspect of which is the Cloud-First Strategy. For example, the introduction of cloud technologies by government agencies in the UK (model “G-Cloud” – “government cloud”) has reduced government spending on digital transformation and information technology by 3.56 billion pounds from 2012 to 2015.

The European Business Association supports draft law No.2655 On Cloud Services and urges the Verkhovna Rada to consider and adopt a document at the next meeting to accelerate the digital transformation of the country and redirect the savings to areas strategically important for the country’s development.

  

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