Cloud computing 'could give EU 763bn-euro boost'

Link to the article: BBC News

Widespread adoption of cloud computing could give the top five EU economies a 763bn-euro (£645bn; $1tn) boost over five years, a report has said.

The CEBR said it could also create 2.4m jobs. The technology gives software and computing power on demand over the net.

But experts warn that cloud computing can be very disruptive to business, and companies could end up "disillusioned".

"Nothing kills a new technology better than a poor user experience," said Damian Saunders of Citrix.

The report, by the Centre for Economics and Business Research (CEBR), was commissioned by EMC, a data storage and IT solutions firm that provides cloud computing services. The company is just one of many pushing into the sector, all saying that 2011 will be the year of the cloud, when the technology will find mainstream adoption.

When a company uses cloud computing, it does not build all IT infrastructure by itself. Instead, it rents storage, computing power or software services from other companies. The services are accessed via the internet, which in network diagrams is shown as a cloud, hence the name.