"Over time, Cyprus’ role within Microsoft has evolved from a strategically located market to a meaningful contributor within a broader regional ecosystem. Today, alongside Greece and Malta – countries connected by shared cultural, historical and economic ties – Cyprus forms part of a growing technological alliance that looks beyond national borders," Yanna Andronopoulou, General Manager of Microsoft Greece, Cyprus & Malta notes.
Headquartered in Redmond, Washington, Microsoft has had a presence in Cyprus since 2002, with a local office in Nicosia supporting sales, consulting and customer services for businesses and public sector organisations.
In a recent interview with GOLD magazine, Andronopoulou talks about the thinking behind Microsoft's decision to establish a presence in Cyprus, further elaborating on the island's growing role.
Among other things, she also discusses specific operational or structural challenges for US companies operating from Cyprus and shares her expert opinion on what more can be done to developing Cyprus’ digital capabilities.
In addition, the General Manager of Microsoft Greece, Cyprus & Malta talks about what the company can do to help strengthen links in education and skills between Cyprus and the US and shares the advice she would you give other US companies considering Cyprus for their operations.
What initially positioned Cyprus as the right strategic choice for Microsoft?
Our decision to establish a presence in Cyprus was driven by a convergence of strategic, human and geopolitical factors. Positioned at the crossroads of Europe, the Middle East, and North Africa, Cyprus offered not only geographic reach but also cultural fluency across regions. This, combined with a government that consistently champions foreign investment, a stable regulatory environment aligned with European standards, and a highly skilled, multilingual workforce, made Cyprus a natural fit for Microsoft’s long-term ambitions in the region. Over time, Cyprus’ role within Microsoft has evolved from a strategically located market to a meaningful contributor within a broader regional ecosystem. Today, alongside Greece and Malta – countries connected by shared cultural, historical and economic ties – Cyprus forms part of a growing technological alliance that looks beyond national borders.
Together, these markets are helping shape a regional platform for innovation, digital transformation and trust-driven technology adoption. Increasingly, this alliance is focused not only on growth, but on how growth is achieved. With a strong emphasis on skills, public-private collaboration and ethical technology development, the region is emerging as a wider hub that aspires to position southern Europe as a beacon of responsible AI. In this context, Cyprus plays a distinctive role: agile, outward-looking and well positioned to connect ideas, talent and investment across continents – contributing to Microsoft’s global vision of technology as a force for inclusive and sustainable progress.
Are there specific operational or structural challenges for US companies operating from Cyprus?
Rather than viewing technology as an incremental improvement, Cyprus is increasingly treating it as a foundational lever – reimagining how services are delivered, how decisions are made and how the state interacts securely with citizens and businesses alike. This transformation is already shaping the business environment for US companies operating from Cyprus. Initiatives focused on digitalisation, cloud adoption and the responsible use of generative AI are helping reduce friction and bureaucracy, improve efficiency and modernise core government functions. Importantly, these efforts are accompanied by a growing openness to experimentation, public-private collaboration and the co-creation of solutions that address real operational pain points, from administrative processes to compliance and service delivery. While challenges continue to influence day-to-day operations, they are increasingly balanced by a government that is proactive, accessible and committed to reform. For US companies, this creates a business environment defined less by where Cyprus has been and more by where it is going: toward a more agile, digitally enabled and innovation-friendly economy. In this context, Cyprus is not merely adapting to global technological change – it is actively positioning itself as a forward-looking state that sees AI and digialisation as strategic tools for national renewal, institutional trust and long-term growth. That ambition, more than the challenges themselves, is what continues to resonate with US companies looking for stable yet progressive bases in the region.
What more can be done to developing Cyprus’ digital capabilities?
There is always more to be done – and that recognition is, in itself, a sign of digital maturity. Cyprus has made meaningful progress in recent years but the opportunity ahead is even greater. Much like our approach in Greece and Malta, Microsoft’s initiatives in Cyprus are focused on using digital technologies and AI to fundamentally improve the quality, speed and effectiveness of public sector service delivery. The goal is not simply automation but transformation: enabling civil servants to spend less time on administrative tasks and more time on complex, high-value issues that directly improve citizens’ lives and support economic growth. The potential for further development of Cyprus’ digital capabilities is closely tied to mindset as much as infrastructure. Encouragingly, the country demonstrates a strong cultural readiness to embrace new technologies – across government, business and society. This openness to change, combined with a growing emphasis on skills, cloud adoption and responsible AI, creates the conditions for sustained digital progress rather than isolated innovation.
How can Microsoft help strengthen links in education and skills between Cyprus and the US, particularly in the areas of technology and innovation?
Microsoft can play a catalytic role in strengthening education and skills links between Cyprus and the United States by acting as a bridge between global knowledge, local ambition and future-ready capabilities. At the core of this effort is a shared belief that skills – not just infrastructure – are the true currency of the digital economy. Microsoft can help align Cyprus’ education and training systems with global technology standards by expanding access to AI, cloud and cybersecurity skilling programmes that are already widely adopted in the US This includes equipping students, educators and professionals with practical, industry-relevant skills while embedding responsible AI principles from the outset. By doing so, Cyprus’ talent pipeline can remain locally rooted but globally competitive – able to collaborate, innovate and scale across borders. We can also support deeper institutional links between Cypriot universities, research centres and US academic and innovation ecosystems. We have already cooperated with European
University Cyprus on a Hackathon, and we have presented AI and Future of Jobs initiatives to multiple lyceums and gymnasiums. Through joint research initiatives, curriculum co-development, and exchange programmes – both physical and virtual – Cyprus can strengthen its exposure to cutting-edge
thinking while contributing its own perspectives as a small, agile and outward-looking market. Technology enables these collaborations to move beyond traditional exchanges into continuous, real-time knowledge sharing.
Innovation-wise, we have already engaged more than 150 start-ups in our start-up programmes.
Equally important is the role of the public sector. By working with the Cypriot government on digital skills for civil servants and educators, Microsoft helps ensure that innovation is not confined to the private sector but embedded across institutions that shape everyday life. This mirrors approaches seen in other markets, where upskilling the public sector becomes a multiplier for national competitiveness and trust in technology. Microsoft can be part of Cyprus’ journey as a regional learning hub – one that connects Southern Europe, the Eastern Mediterranean and the US around emerging technologies. Through certifications, start-up enablement and partnerships with US tech companies operating in or entering the region, Cyprus can become a place where talent is developed, tested and retained, rather than exported. In this sense, strengthening education and skills links is not just about knowledge transfer between Cyprus and the US. It is about co-creating a shared future, where talent flows both ways, innovation is responsible by design and technology serves as a bridge between nations, generations and ideas.
What advice would you give other US companies considering Cyprus for their operations?
I would say that the most important decision to make from day one is to treat Cyprus not simply as a location, but as a long-term partnership ecosystem. Microsoft has had a consistent presence in the country since 2002. Moving to a partnership of this level, first, it is critical to align early with the country’s digital and innovation trajectory. Cyprus is in the midst of a broader transformation toward AI-enabled public services, cloud adoption and digital-by-design institutions. Companies that engage early with government stakeholders, regulators and public sector programmes tend to navigate complexity more effectively. Understanding the reform agenda and anchoring business plans to where the country is going, rather than where it has been, is a decisive advantage. Second, investing in local talent and skills development should be a priority from the outset. Cyprus offers a highly educated, multilingual workforce with strong cultural proximity to Europe, the Middle East and beyond. US companies that succeed are those that view talent not merely as a resource but as a strategic differentiator – supporting continuous upskilling in areas such as AI, cybersecurity and cloud technologies, while creating clear pathways for local teams to participate in global projects. Third, companies should design for regional relevance, not just local presence. Cyprus’ real value lies in its ability to act as a gateway to Southern Europe, the Eastern Mediterranean and nearby emerging markets. Structuring operations, partnerships and go-to-market strategies with a regional lens from day one allows companies to scale more efficiently and justify longer-term investment. Equally important is adopting a patient but ambitious mindset. Like many smaller markets, Cyprus can move quickly once alignment is achieved but it rewards companies that build trust, understand local dynamics and commit beyond short-term returns. This includes navigating regulatory processes thoughtfully, engaging local advisors and recognising that credibility and relationships are powerful accelerators in a close-knit ecosystem. Finally, companies should anchor their presence around purpose and responsibility, particularly when it comes to advanced technologies such as AI. Cyprus is increasingly positioning itself around trust, ethics and responsible innovation. US companies that embed these principles into their operations – from governance and data protection to societal impact – will find stronger alignment with policymakers, partners and the public. In short, long-term success in Cyprus comes from combining strategic intent with local empathy: investing in people, aligning with national ambition and thinking regionally from the start. For US companies willing to do that, Cyprus offers not just a base of operations but a platform for sustained growth and meaningful influence in the next era of digital transformation.
This interview first appeared in the February edition of GOLD magazine. Clcik here to view it.
