Setting the cloud price

Implementing the first phase of the ‘Smart City’ project agreed to with Alibaba will take up MOP200 million (US$24.8 million) annually of the MSAR budget over the next two years, the Government Spokesperson’s Office stated yesterday.
The current MSAR government budget for IT technology development is set at MOP500 million.
According to the agreement signed on August 4, the first phase of the project to be developed with the group’s subsidiary Alibaba Cloud, will be concluded by June of 2019.
The first phase will involve developing the first section of a cloud computing and data storage centre, with the government assuring the data will be stored in Macau, with MSAR Government premises being ‘solely used’ for the centre.
Through Big Data analysis, the centre is expected to improve the city’s tourism, transportation, healthcare, governance and talent development, with the second phase of the agreement expected to be finalised by June of 2021.
“The establishment of a Government-only cloud computing centre means that the facilities, equipment, system, platform, computing method, in particular, data collected and stored by the system shall be owned by the Government of the MSAR,” the release announced.
The government also assured the Alibaba Group would ‘only’ provide support for the creation of the cloud computing centre, the configuration of the cloud computing system and the mega-platform, the design of the mega-computing method, without having access to Macau data.
In a release on Sunday, the Personal Data Protection (GPDP) stated ‘adequate protection of personal data is the essential element in the development of the Smart City’ with the department saying it would continue to oversee the project’s development.

Our good partner
The government also defended the lack of a public tender for the Smart City agreement with Alibaba, mentioning that the MSAR law currently allows that certain services or construction with special characteristics can be awarded directly.
Therefore, due to the ‘complexity of building the cloud computing center and the mega-platform’ and the ‘need for integration and connectivity’ of the data, the government considered that the Alibaba Group was the most ‘indicated partner’.