Cloud computing: technology’s silver lining

A practice that allows easy access to computer applications and services through the internet has altered the way global business communities operate. Very soon this strategy, known as cloud computing, will cast its shadow on the Middle East as regional companies tap the benefits of a web-based computing system, industry experts predict.

Created in the 1960s, the online-enabled method evolved through the decades and gained widespread attention in the late 1990s with the growing popularity of Web 2.0.

Through cloud computing, users can access applications and media (text, audio, videos, photos, etc) via the internet without the need to download and install software on their PCs.

The business community has recently come to recognise the raw power of such a model. In a report published in May 2008, Merrill Lynch estimated that the volume of market opportunities from the cloud computing industry will be worth a whopping $160 billion (Dh589bn) by 2011.

The results of a survey released this month by Minneapolis-based IT infrastructure company ReliaCloud also showed that about 83 per cent of large and small-to-medium companies in the United States plan to adopt cloud-computing services as a crucial part of their IT infrastructure in 2010.

In the Middle East, cloud computing may still be in its infancy when compared with other regions in the world, but industry sources believe the future is bright for this sector as companies focus on consolidating their assets.

Mohamed Alojaimi, Oracle Corporation’s Technology Solutions Director-Financial Services Industry for Middle East and Africa, says cloud computing is part of a “natural evolution” happening in the information and communications technology (ICT) industry.

“[Companies] are interested to know how they can move forward – what they need to keep, remove or change in their infrastructure and what cloud-computing service providers can offer them,” he said.

Middle East firms keen on using the cloud

Ali Faramawy, Microsoft International’s Vice-President, said the tech giant also received a number of enquiries from regional companies.

“People are talking about how to get ready for this (cloud computing) in terms of training and setting up the right infrastructure so that users obtain the services in the right way possible,” he said.

Apart from the genuine interest shown in the region, Faramawy said what is more encouraging is how discerning customers are in considering cloud computing as a viable IT option for their companies.

“Customers understand that the right vision [to take] is a combination of software plus services. They want the flexibility to run their infrastructure and receive the different solutions and services in a variety of ways, ranging from traditional [to] PCs, mobile [and] regionally- or globally-hosted services,” he said.

Faramawy added that regional decision makers have also been interested about Microsoft’s Windows Azure as a cloud-computing platform that enables network developers to store, host and manage web applications on the internet through Microsoft datacentres.

John Hoonhout, managing director of Hewlett-Packard Middle East, agreed that a combination of products and services are needed to build a cloud-computing platform that clients will be comfortable to use for migrating their existing data and older systems into.

“Yes there is definitely interest in the market, but for private cloud as there are still concerns about data privacy and security associated with public cloud computing, ” Hoonhout told Alrroya.com when asked about the region’s feedback regarding the system.

Calming online security fears

With the internet becoming a notorious breeding ground for various malicious activities, it is but natural for anyone (whether individuals or corporations) to be wary of using it for data storage and management.

Service providers have taken into account this primary issue, thus resulting to the creation of private cloud computing, which offers a more secure network unlike public applications such as Google, Amazon, Hotmail and Yahoo.

Oracle’s Alojaimi said government agencies and financial institutions that use centralised data hosting are some of the establishments that adopt private cloud computing services.

“This system makes more sense for them because it offers an environment that is highly secured and controlled,” he said

Microsoft’s latest operating system Windows 7 has also been billed to complement the company’s cloud-computing platform.

“Security concerns need to be addressed from three different angles – the cloud-computing platform, the applications running on your machine or desktop, and the networking issues. So definitely, Windows 7 will play its part in the broader element of security,” says Faramawy.

Promising forecast in IT market

Hoonhout says cloud computing holds abundant potentials in the region, particularly as it continues to mature and the adoption rates move upward.

“This will particularly appeal to companies that can leverage the economies of scale. If you’re an SMB enterprise, for instance, cloud computing will give you access to an enterprise class solution at an SMB price point. So I think the financials are compelling,” he explained.

On January 20, HP and Microsoft announced a $250-million project that seeks to advance cloud computing technology for businesses in the Gulf and Middle East regions.

This endeavour is expected to deliver new solutions that will speed application implementation and eliminate complexities of IT management, while at the same time automating manual processes to lower overall expenses.

Alojaimi says it is just a matter of time before the region catches up with the rest of the world in using cloud computing as an IT strategy.

“I think most of the customers who understand consolidation, virtualisation, and automation are in the right track. They are ready to move to cloud-computing anytime,” he said.