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Mozambique and the Rise of Cloud Computing

Mozambique and the Rise of Cloud Computing

  • David Gonçalves • EY Partner | Technology Consulting & Bruno Dias • EY Partner | Business Consulting

A first parenthesis to explain to the reader less inclined to master digital concepts that cloud computing, also known as cloud computing, is a term that refers to the delivery of computing services over the Internet. Instead of companies and individuals installing software on their own machines or maintaining their own IT hardware (such as servers), they can access these IT resources via a cloud service provider, such as Amazon Web Services (AWS), Microsoft Azure or Google Cloud.

In fact, the vast majority of readers use these services, perhaps without even realising it, whether it’s storing photos in Apple’s iCloud or making use of Microsoft’s OneDrive to host corporate files.

The types of cloud computing services are currently very multifaceted and range from infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS). The latter allows the use of applications maintained on the cloud server, ranging from ERP to analytical applications and cyber protection software. It should be noted that many of the technology giants, such as SAP, have already announced the complete migration of their product portfolio to the cloud.

Cloud computing offers many benefits, including cost savings, efficiency and scalability. It allows users to access and share data from anywhere, as long as they have an Internet connection. This also facilitates collaboration and business continuity in the event of disasters or interruptions. The cloud allows organisations to achieve greater agility and the ability to implement combined platforms and/or ecosystems.

The use of the cloud is no longer an aspiration for organisations, it is a directive. Transformations and optimisations leveraging cloud technologies are the new normal.

There are those who argue that migrating to the cloud is quick and easy. However, this migration may not be as quick and easy as it seems due to complexities such as data transfer and technological transformation needs

Organisations are rapidly moving their infrastructures to cloud environments. Currently, 39 per cent of companies have more than 50 per cent of their workloads in the cloud and it is expected that, within 12-18 months, 58 per cent of companies will have more than 50 per cent of their workloads in the cloud.

The cloud spending forecast for 2026 amounts to 45% of the IT budget, which contrasts with 17% in 2021.

There are, however, many myths associated with using cloud computing. The first is that there are security problems. It is assumed that as the data is not in its own infrastructure, it can be tampered with or stolen. However, cloud providers offer a range of security measures, such as encryption, access control and backups to ensure that data is safe.

Another myth is that using the cloud represents a high cost, when in reality it can help organisations reduce hardware and maintenance costs (if the right sizing and know-how are in place).

The country needs to deepen the debates that provide solutions for the development of cloud computing

There are also those who argue that migration to the cloud is quick and easy. However, this migration may not be as quick and easy as it seems due to complexities such as data transfer and technological transformation needs. Here, planning and defining the right migration strategy are essential.

Finally, there is also the myth that cloud solutions are less reliable than on-premise solutions. In reality, cloud services typically have a higher Service Level Agreement (SLA) and guarantee a higher level of availability (99.9 per cent in some cases).

In this context, some companies are favouring the use of hybrid environments (public and private) to increase control over infrastructure and data. Although the private cloud is more expensive, it allows data to be kept in specific jurisdictions. Organisations are also opting to use data centres in the same region where they operate to adhere to local regulations.

Control and regulation over the use of the cloud is a topic of increasing debate. With the increased use of cloud services, cybersecurity concerns and the geopolitical context, organisations have been implementing a number of strategies and actions to meet regulation and concerns about data sovereignty.

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In the context of Mozambique, it should be noted that the National Institute of Information and Communication Technologies, IP. (INTIC) and the Mozambican Banking Association recently signed a Memorandum of Understanding with a view to drawing up the Regulation for Cloud Computing in Mozambique. This regulation is essential for the introduction of this type of technology and paradigm in the country, since the evolution towards Cloud services creates challenges in the interpretation, governance and implementation of national regulations and creates the need to clarify the legal implications of this model.

Cloud computing issues were the subject of debate at the first EY Digital Club lunch, which aims to be a space for debate between leaders with responsibilities in the IT and Digital spheres. With this initiative, EY aims to present insights and challenging points of view on how the digital transformation is impacting the various sectors of activity. It’s also an opportunity to see case studies of companies that are leading the way in their markets by creating products, services or experiences developed from scratch for a digital world and that can be considered for introduction or development in the context of Mozambique.

There is an increasing need for these discussion forums, which allow us to think of consensual solutions for the country’s development, and for it to be able to make qualitative leaps in the digital transformation of the public and private sectors.

It is essential that we all play our part in this important challenge, which is crucial for Mozambique’s economic and social development. Are you ready for it?

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