In a groundbreaking move, Japan's Digital Agency has selected Sakura Internet, an Osaka-based IT firm, as the provider for the government cloud service managing sensitive information held by local governments. This historic decision marks a shift from the dominance of foreign providers, Amazon, Microsoft, Google, and Oracle, opening up possibilities for a domestically produced government cloud.

Digital Minister Taro Kono expressed optimism about this development, stating, "For the first time, the possibility of a domestically produced government cloud has emerged. I hope you will do your best." Sakura Internet, established in 1999 and listed on the Tokyo Stock Exchange's prime section, is expected to commence services in the second half of FY 2025.

The move towards a domestic government cloud aligns with the global trend of prioritizing economic security through essential infrastructure like cloud services for efficient data management. This transition is crucial, considering the role cloud services play in safeguarding sensitive information and fostering domestic production.

Recognizing the need for change, the Digital Agency revised its selection process in September to include domestically produced products, breaking the monopoly of U.S. companies. The decision to allow the use of services from multiple companies to fulfill selection requirements emphasizes a commitment to meeting all criteria by the end of fiscal year 2025.

As Japan takes this significant leap into the era of domestic government cloud services, Sakura Internet's selection promises a new chapter in ensuring data security and promoting homegrown technological solutions. Stay tuned for the transformative impact of this shift in Japan's digital landscape.

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