He acknowledged that there were concerns from some organisations that the Office 365 cloud was operated out of Singapore. He said that he believed it would take a long time to establish international conventions which might provide a measure of comfort to users regarding the security and privacy of their data when it was held offshore.
Rather than wait for that, 'Our intention is to migrate to locally held data,' he said.
Dr Bradlow was unable to say when that might be achieved. However he said Telstra already had the data centre capacity it would require to offer the service locally.
He said that the speed at which Telstra could move on its plans was controlled by Microsoft.
Responding to iTWire's questions about the plans a Microsoft spokesperson said; 'Microsoft is in ongoing discussions with its Office 365 partner Telstra. Those discussions are commercial and in-confidence and as a result it would not be appropriate to comment at this time.'
At the launch Phillip Jones, executive director of innovation and product management at Telstra, said "no doubt some capabilities will be brought onshore," although he wouldn't say what or when.
Clearly Telstra is now hoping all the processing can be shifted to its local data centres.
Microsoft might also be more open to the notion of sharing the burden of hosting Office 365 after the embarrassing two hour outage that the company endured earlier this month, which affected some of its US customers.
Dr Bradlow said that support for cloud based services of all types was gathering steam, although he acknowledged that there remained a debate regarding the security of cloud offerings. However while he said that for the banks and Department of Defence, third party clouds would probably never match their internal security, 'for the average organisation the threats against virtualised data centres are remote.'
He said that while there were some threats - nominating the so called Blue Pill malware which is targeted at virtual environments - the threats against individuals were greater and rising, making cloud services a generally safer bet.