Communications Minister Stephen Conroy has raised cross-jurisdictional data challenges and security as key inhibitors to cloud usage in Australia.
Addressing the AIIA cloud summit conference in Canberra, Conroy said consumer concerns over the privacy of hosted data and Government concerns over security could "impede us from fully realising the benefits of the cloud".
However, he saw the National Broadband Network as a platform that could aid the emergence of homegrown cloud services, which might alleviate current concerns.
Conroy made it clear that jurisdiction was a sticking point for doing business with government in the cloud.
“Salesforce.com chief Marc Benioff has indicated that a data centre for Australia is a matter of when not if," Conroy said.
"The Australian Government welcomes such confidence and commitment by the private sector".
Telstra, Fujitsu, Macquarie Telecom and others invested $2.1 billion in domestic data centres in the back half of 2011.
“The domestic cloud computing sector will be an important component in the success of Australia’s digital economy,” Conroy said.
"It is now up to Australian businesses and governments to back these investments by considering and accessing the benefits of cloud computing."
The AIIA conference attracted about 100 delegates. It is being hosted by US ambassador Jeffrey Bleich and included a keynote from former White House chief information officer Vivek Kundra, who is now employed by salesforce.com.
Cross-jurisdictional issues around cloud computing are likely to be a topic at Trans Pacific Partnerships talks (TPP) set down for Melbourne next month.
Kundra told CRN he had no knowledge of the impending TPP talks around cloud computing.