Since the fire at the National Data Resource Management Center in Daejeon, the proposed public-private partnership (PPP) cloud in Daegu has effectively become a backup site, leaving many public institutions struggling to secure cloud services.
New criteria now allow only systems rated 'high' security to reside in the Daegu PPP cloud due to limited space. Institutions that do not meet this rating are forced to diversify to private clouds, resulting in project costs increasing by tens of millions of won.
According to the IT industry on July 22, following the fire in September last year that destroyed numerous systems, the government established a policy permitting only 'high' rated systems to occupy the Daegu PPP cloud.
This adjustment was made to secure disaster recovery (DR) and redundancy space for systems lost in the fire.
The issue arises for institutions that have already developed information strategy plans (ISP) based on public service delivery. High-rated systems are, by definition, unable to provide public services via the internet. If reclassified as high-rated, the originally planned services become impossible. To move to Daegu, many public institutions must abandon public service offerings, leading them to build their own clouds or outsource to private providers.
However, switching to private clouds does not resolve the issues. The PPP cloud has already attracted investments based on demand from various public institutions, creating economies of scale, while the private sector remains hesitant to invest due to uncertain demand from public institutions.
As a result, some institutions are either canceling projects or opting for direct investments. Institution A had initiated an ISP project based on moving to the Daegu cloud but canceled it after being denied entry, incurring additional costs in the tens of millions. Institution B decided to invest directly in cloud infrastructure but now faces the challenge of revising its budget due to significant additional server costs.
The burden of cloud infrastructure costs is expected to increase further due to rising semiconductor prices. With memory prices climbing, the cost of building server infrastructure is also rising, and expanding in-house server rooms to establish GPU infrastructure presents a significant financial challenge.
Many public institutions are struggling to operate GPU servers due to power capacity limitations. Industry insiders note that the cost of three years of cloud usage fees can equal the cost of purchasing GPU equipment, making it difficult to avoid rising expenses regardless of whether they outsource or build in-house.
Network configuration issues also pose challenges. The National Data Resource operates separate networks for public, administrative, and internet use, while private clouds do not maintain such distinctions, effectively treating all areas as internet networks.
When data integration is needed between existing National Data Resource systems and new private clouds, it is uncertain whether the National Data Resource will allow such connections due to security policies. Even if permitted, additional costs for redundant lines may arise. Recent guidelines easing network separation conflict with existing security regulations, adding to the confusion on the ground.
Industry experts believe this issue is not limited to specific institutions. With the tightening of entry criteria for the Daegu National Data Resource following the Daejeon fire, other public institutions that designed projects based on public cloud utilization may also face similar dual investment burdens.
The government's shifting cloud policy, which has alternated between public and private sectors depending on the administration, is also cited as a factor contributing to uncertainty in the field.
An IT industry representative stated, "The lack of clear government standards for cloud policy is becoming a burden for companies seeking public contracts. Companies initially considered the PPP cloud, but with policy changes leading to rejections, they may incur additional costs. This creates a situation where they operate at a loss while handling government projects."
* This article has been translated by AI.
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