Microsoft is currently the only company whose enterprise cloud services including Microsoft Azure, Office 365, Dynamics CRM and Windows Intune services meet the standards of EU privacy laws. What is the status of cloud computing in Malta and what are the issues that could be hampering more take-up?

According to recent data published by Eurostat, in 2014, 17 per cent of Maltese companies used cloud computing services. Whereas an encouraging number of companies have started purchasing cloud computing services, others are still holding off, citing security and privacy risks. This shows that many companies and organisations still need to understand the actual investments into cloud security made by Microsoft and other cloud providers.

“We still see reports of attacks, hacks and theft of data managed by online service providers so some of these misgivings are understandable. However, building a comparably secure and flexible private cloud or onsite data centre is too expensive for all but the largest global enterprises,” says Jonathan Vella, Partner Technology Strategist, Microsoft.

“This is the feedback we receive from our customers that have already moved to the cloud. One example is Allied Group. One of their most important wishes was to retain their privacy and security in order to protect sources and information. As they moved to Office 365, they realised that public cloud systems are more reliable, resilient and secure than anything they could have been built by themselves or purchased from a local provider,” added Vella.

“Whereas take-up and usage of cloud computing may be difficult to gauge, security and privacy concerns are still prevalent. Reasons why companies hold back from migrating include lack of knowledge, prior investments, the concept of still wanting to have hardware on premise, autonomy, trust, security, lack of cloud standards, reliability doubts and the overall idea of having to depend on the internet or particular service providers. I feel that as long as one has all the necessary assurances in place, then that take-up and usage should increase,” said Donald Tabone from Allied Group.

“The main advantage of using cloud technologies is cost reduction since this avoids the acquisition of hardware which would cost more to implement and maintain. A subscription-based model which avoids the initial capital outlay for the aforementioned items challenges the idea of traditional IT expenditure in favour of subscription-based models on a pay-per-use basis spread over a given time. We found this highly convenient,” added Tabone.

Microsoft acknowledges that some customers’ misgivings may be justified and it would be imprudent for CIOs and CEOs to blindly rush into the cloud without due diligence.

“At Microsoft, we know exactly how hard it is to create secure software and services. We have been working on our Trustworthy Computing initiative for years and we are seeing it bear fruit in the cloud computing era, where security is number one on everybody’s list. We are currently the only company whose enterprise cloud services including Microsoft Azure, Office 365, Dynamics CRM and Windows Intune services meet the standards of EU privacy laws,” Vella said.

“Only 17 per cent of Maltese companies are using cloud services. This means that the other 83 per cent are not taking advantage of the flexibility and reduced costs brought on by cloud computing. By not taking this opportunity to improve their business, companies are slowly but steadily falling behind other companies that have moved to the cloud and are reaping the benefits. I understand that the step may seem risky, but by asking the right questions and following the right lead it’s a great way to be a better business.”

Cloud technology has been portrayed as a promise to more growth, innovation, efficiencies and employment. Is this really happening?

“With cloud technologies, a lot of resources are pooled and shared among different people and while by definition cloud technology is inherently scalable, it also means that companies can now easily scale up or down their needs for any particular technology. This is a scalable form of empowerment to grow, innovate and become more operationally efficient. As a result, cloud computing and virtualisation have made it possible for IT to align and adapt depending the direction a company decides to take or the rate at which it wants to grow. Cloud technology has made it easier for organisations to promote innovation and efficiency,” concluded Tabone.