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Cloud Computing Could Boost UK Economy €30 Billion A Year By 2015

The adoption of cloud computing could boost the UK economy by €30 billion a year by 2015, a new report has revealed.

The report, conducted by the Centre for Economics and Business Research (CEBR) and commissioned by EMC, calculates that the top five EU economies - UK, France, Germany, Spain, Italy - could add as much as €177.3 billion per year by 2015 by switching some of their services to cloud computing, with the UK set to receive €30 billion.

This, the report suggests, could go some way to covering the loans taken out by the already indebted EU states, such as Ireland and Greece, and “comfortably pay” for the four-year €95.7 billion in public spending cuts to be undertaken by the UK government.

CEBR also says that the move could create an extra 2.4 million jobs.

Cloud computing allows companies to access technology on demand over the Internet, which CEBR claims “speeds up time-to-market, removes traditional barriers to entry and allows companies to exploit new market opportunities.”

“This ‘business creation’, as a direct result of cloud computing, will have a profound effect on the market structure of many sectors as competition increases and, thus, on global macro-economic performance,” the report said.

According to CEBR, the bulk of the money will come from private and hybrid clouds, rather than public clouds, accounting for up to €133 billion or 75 per cent of the total €177.3 billion.

“Our study shows not only that cloud computing is an issue from the micro perspective of boosting the efficiency of an individual company’s IT investment and corporate productivity, but that in the present uncertain economic climate, it is also likely to be a critical macro-economic factor that will be crucial for boosting Europe’s economic growth,” said CEBR managing economist Oliver Hogan.

“Cloud computing is one of the major means of maximising ‘bang for buck’ in modern IT investment. It could also be an important driver of European business investment that will, in turn, drive European economies forward.”