Government to start the first business from the second half of the year
To support the domestic industry away from the focus on foreign production
Opportunities for monitoring and security market too

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The government will take the first step on a grand journey to transform the entire public system to the cloud by 2025. The active use of domestic and open software (SW) is expected to reduce dependence on foreign SW and equipment and to serve as an opportunity for the domestic software industry to grow. According to the 'Proposal Request for Cloud Conversion and Integration of Administrative and Public Institutional Information System Project(1st) announced by the National Information Society Agency (NIA), the project to convert the information system environment of administrative and public institutions to cloud will start from the second half of this year.

In July 2020, the government unveiled the 'Korean New Deal Comprehensive Plan' along with 'Public Sector Cloud Conversion' plan. The main goal is to convert and integrate 10,000 systems managed by the computer offices of the public sector,including ministries, public institutions, and local governments, into a 100% cloud environment by 2025. To this end, the public sector cloud transition demandsurvey andthe transition design work were completed in the first half of this year. With the transition of public systems to the cloud, it is expected that the introduction of domestic and public software will spread. The government specified in the first project proposal request thatdomestic and public software will be applied first for cloud conversion 'For system SW such as Database Management System (DBMS) and theWeb Application Server (WAS).
Except for the expansion of the existing system, no standards are specified in the proposal request. This shows the government's will to improve the public system environment centered on foreign production. Application of new foreign SW such as Oracle is expected to decrease, while opportunities to adopt domestic SW such as Tibero and open software will increase. The position of domestic and public SW will also enlarge in the fields such as cloud service monitoring, security control, and information and communication technology equipment.
The government will provide a constant monitoring and security control environment after transition to the cloud. A new market for monitoring and security control related to 10,000 systems will be created. Many small and mid-sized software companies in Korea are expected to aggressively enter the public market as they have the technology and capabilities in this field. A government survey on the useful life of ICT equipment owned by each institution showed that about half of them need to be replaced. The increase in the introduction of open SW will increase the adoption of inexpensive and stable domestic equipment instead of expensive equipment.

The government expects to strengthen the competitiveness of domestic cloud services by increasing the open software application rate to 90% and the software localization rate by about 14% compared to the existing cloud conversion project. The private cloud market is also expected to grow, as 130 systems excluding 4 for the first conversion will be moved to the private cloud center. A government official said, “The ratio of open and domestic SW introduction will naturally increase du ring the transition process of the cloud system.It will be a good opportunity for domestic companies.”

Young-sunSong, president of the Korea Commercial SW Association (CEO Infranics), said “In the meantime, the domestic commercial software industry has steadily secured technology and human resources to prepare for the cloud market. A full-scale transition to public cloud starts in earnest will create a new public market for domestic companies, bringing a positive impact on the overall growth of the industry.

By Staff Reporter Jiseon Kim