A technology row is emerging over the definition of dynamically scalable and virtual servers, termed cloud computing.

Yesterday, Orcon announced the launch of a cloud computing service for small to medium businesses that it claimed was the first locally developed service in the country.

Servers and storage (including virtual servers) are created or removed instantly and used ‘on demand’, with customers paying only what they use. Added data storage or capability can be added without needing new computer infrastructure.

The term, cloud, refers to the behind-the-scenes infrastructure that supports computer services over the internet, which users often have little knowledge of.

But Iconz chief executive Sean McDonald said that was exactly why people often lacked understanding of technology products, especially where they were evolving.

“That’s the black magic of the industry,” he said.

Mr McDonald said his company entered the market in October 2008. “One of the problems with the industry is that anyone with a reasonable size server and a bit of software can state they’re a cloud provider.”

Iconz website does not specifically offer ‘cloud’ computing, but Mr McDonald said the service it provided – essentially “renting” space on a computer or server via the internet – was the same thing.

“It’s an evolutionary technology, not a silver bullet. It’s one of those buzz phrases people are talking about.”

Larry Ellison claimed last month the present and the entire past of computing was ‘cloud’ and it was only a computer attached to a network.

 
Rod Drury, founder of online accounting system company, Xero, said local cloud services had been available in New Zealand since about 2000 from companies including Datacom and Abacom.

“There’s definitely a trend towards this as broadband gets better, to push your data on to a cloud that can be managed by somebody else. It’s becoming more mainstream for small businesses as well.

"But it's probably a bit of cheeky marketing.”

Mr Drury said it was logical for smaller business and even at home users to store data including photo albums on locally developed services in the future and it was a positive move by Orcon.

Orcon spokesman Duncan Blair said the company was standing by claims and the definition of cloud computing as dynamically scalable and virtual servers.