Microsoft’s agreement with the Maltese government to open the world’s first Microsoft Innovation Centre in Malta to focus on cloud computing has moved the concept of “cloud computing” up the local ICT agenda.

The Maltese government is now examining the possibility of having one of the first clouds in Malta, thanks to the new data centre of the Malta Information Technology Agency in Sta Venera, which is to be inaugurated later this year.

“We are looking at ways on how the new corporate data centre can enable us to move to a situation where we can have one of the first private clouds in Malta,” MITA chairman Claudio Grech told i-Tech.

“We are also exploring different possibilities on how we can make use of the public clouds available. In fact, part of the recent Microsoft agreement offers usage of their cloud office offerings. However, our major area of focus is to have an internal private cloud and deliver cost-effective services across all government.”

Cloud computing allows computing resources such as processing power, storage, applications and services to be based on a server somewhere “out there” or “the cloud” accessible through internet.

This brings both benefits and challenges. While it will bring cost savings in the long term and organisations can access increased computing power in no time, there are privacy and security issues, as well as the vital need of being always connected to the cloud provided by a third party.

“Security is a major strategic concern and we’re investing heavily in that area,” Mr Grech continued.

“The cloud obviously presents a new breed of security concerns, particularly if it is a public cloud. Our option to move towards a private cloud also stems from the risk-management approach we want to take. Then again, we can’t isolate ourselves from the rest of the global developments. We need to make sure that whichever solution we choose is appropriate for the kind of use we need. Not all systems are appropriate for public cloud utilisation, but not all systems need to be hosted internally in our data centre. Our challenge it to find the optimal balance.”

Cloud computing is one area in which Microsoft is investing significant energy and funds at the moment, and the new Microsoft Innovation Centre to be opened in Malta is another step in this direction. So far, the software giant has spent over US$9.5 billion in research and development on this area alone.

“Cloud computing means leveraging economies of scale for any business of any size,” explained Adrianna Zammit, Microsoft country manager in Malta.

“With service-based techno­logies, companies only pay for what they use, can account for fluctuations in their business and can come to market quickly and efficiently (as opposed to buying and setting up physical data centres and infrasturcture which is very costly).

“Launching our locally-based Innovation Centre as part of our strategic partnership with the government will enable our local economy to learn, engage, develop and bring to market innovative businesses based on the cloud. A component of the innovation centre will be to bring training, certifications and awareness on how cloud computing can be fully leveraged. It is indeed a transformational and exciting time.”

The MIC will not be exclusively focused on Microsoft technologies but will assist the overall local industry to develop in the cloud computing landscape.

Cloud computing is not a new concept at all, according to Ernest Cachia, dean of the Faculty of ICT at the University of Malta.

“The concept is not new as it was considered in the 1960s and 1970s but the ideas were not implementable. Today we have the computing power and communication infrastructure to realise the concept. We are returning to the origins of computing where one big computer serves people. The Google Chromebook is an example. It depends 100 per cent on internet access, without which it is useless.”

As an academic, Dr Cachia believes the adoption of cloud computing is still in its infancy and describes it as a “shark’s playing field”.

“People are looking more at the services rather than the technology. It can be called the ‘laziness approach to computer infrastructure in your business’ as this is offered straight to you in the cloud. The selling point is that businesses do not have to worry ‘what’s inside’. Everyone is trying to configure it to offer services on it. It’s a marketing issue, a marketing ploy.”

Asked about the real advantages and disadvantages of cloud computing, Dr Cachia was very explicit.

“Internet access is critical. Everything has to be available always by definition of the cloud. If you are not that much of a security freak, you might be willing to be on the cloud. It also depends on the nature of your business.”

However businesses might have no other choice after all, according to Gordon Micallef, senior manager at PricewaterhouseCoopers.

“With a global economic crisis, cost-cutting measures have had a significant impact on the innovation investment elements in technology and therefore more organisations are relying on the cost-saving benefits of cloud computing to meet the dynamic demands to deliver and manage IT more rapidly. This is also reflected in the way business looks at IT more strategically, and the emerging role of a chief information officer sitting at the executive management table, rather than a head of IT administration.”

Mr Micallef is convinced Malta will move on with current international trends, despite the peculiar local conditions

“With our size limitations, the economies of scale have not yet shown significant cost benefits to local organisations,” he said. “However, as local businesses develop further, and demand of agility in the innovation cycle delivered through technology increases, local businesses will turn to cloud computing offers particularly as there is a low barrier to entry even for small organisations. Similar to the evolution path in other territories, Maltese organisations have started to realise the benefits out of virtualisation technology and are moving in the direction of private cloud infrastructure.

“As demands will continue to increase together with market pressures, and increased commercialisation of the delivery of cloud computing services, Maltese orga­nisations will slowly, but surely, be moving towards the cloud.”

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