John Lyons (Dublin North West, Labour)
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Question 228: To ask the Minister for Jobs, Enterprise and Innovation if he will provide information on State support for the cloud computing sector here; the way that he and relevant agencies are encouraging start-up businesses in this sector; the number of existing multinational companies that have received support to set up here; and if he has examined introducing cloud computing in his own operations. [12833/12]

Richard Bruton (Dublin North Central, Fine Gael)
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The Government's Action Plan for Jobs outlines a number of actions which will be implemented in 2012 to support the Cloud Computing sector in Ireland. Such actions include:

· Examining the potential for demonstration projects in cloud computing to promote Ireland as a centre of excellence for this technology, providing a reference site for Irish companies, while potentially lowering costs and improving services;

· Supporting industry groups (e.g. Irish Internet Association) to develop and deliver a practical tool kit to assist SMEs in assessing the adoption of Cloud Computing for their business;

· Ensuring that the ICT Skills Action Plan incorporates needs associated with the development of Cloud Computing in Ireland;

· Developing a Cloud Computing Procurement Standard with industry experts through an NSAI Standards group;

· Supporting research groups in areas of relevance to exploitation of cloud computing; and,

· Delivering a Cloud Computing Technology Research Centre in order to support an industry led research and innovation agenda in this area.

With regard to the last two bullet points, I can confirm that a Cloud Computing Technology Centre is being established jointly by Enterprise Ireland and IDA Ireland. After an open consultation process with industry partners, a steering committee has begun the work of developing a detailed research agenda. This agenda formed the basis for the Initial Research Programme which will be undertaken by Dublin City University, University College Cork and Athlone Institute of Technology and will formally commence in the coming weeks. This phase will be funded by €1m over 12 months.

This research is particularly valuable in that, it not only includes considerations of the technical expertise and requirements to develop effective cloud computing platforms, but also incorporates the business acumen required to build new business models, end user requirements and novel ways to commercialise these platforms at the very outset of the research programme. This approach will continue to inform and drive the development of the ongoing research into this increasingly economically advantageous area. While this phase is running in 2012, an open competition will be held to establish a Host for the formal Technology Research Centre, which will allow for a significant scale up in activity over a 5 year period supported by €5m in exchequer funding.

While the Cloud Computing Technology Centre represents the primary mechanism through which Enterprise Ireland will assist the business sector to develop and acquire expertise Cloud Computing, Enterprise Ireland has, in addition, funded directly a number of Cloud Computing start-up companies through its High Potential Start Up Programme and its Competitive Start Fund and will continue to support start-up companies in this sector.

IDA Ireland has informed me that, at the end of 2011, it was supporting 67 client companies in the Computer, Electronic and Optical Equipment Sector that employed over 14,000 people. It is not possible, however, to state how many of these companies are focused solely on the Cloud Computing sector.

The question of introducing Cloud Computing in the Public Service is currently under consideration by my colleague, the Minister for Public Expenditure and Reform, who has committed, in accordance with the Acton Plans for Jobs, to developing a Cloud Computing Strategy for the Public Sector in 2012.