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Today's Tech: LG admits to TV spying, Amazon launches virtual currency and Gartner predicts slim Christmas smartwatch sales

The UK small and medium businesses [SMB] cloud market will hit £2.5 billion by 2016 as companies move towards fully hosted solutions according to research by a cloud hosting company. Parallels' SMB Cloud Insights report shows that the market as a whole will grow from its current annual run rate of £1.4 billion with the UK leading the way in Europe when it comes to cloud services. "The UK cloud services market for small and medium businesses is almost twice the size of the French or German markets. The demand for IaaS and business applications, which accounts for 75 per cent of all SMB needs, is continuing to grow," said John Zanni, CEO of Parallels.

Electronics firm LG has apologised to customers after admitting that it collected data on viewing habits without their knowledge. Jason Huntley, a UK-based IT consultant, first reported the discovery on his blog after he noticed that his new LG Smart TV was targeting ads at him on the Smart landing screen. His investigation revealed that LG was collecting information about his viewing habits and sending it unencrypted to its servers in order to profile customers and target ads accordingly. Following extensive media coverage, LG launched an investigation into the matter.

Amazon has built a reputation for for easing the stress of online shopping with its 'one-click order', but now the Internet retailer is shaking up cyberspace spending once more with the introduction of its own virtual currency. With the original title of 'Amazon Coins', customers will be able to use the digital money to purchase apps, games and other content for less than if they were buying using the pound. The range of products you can spend your Amazon Coins on is limited purely to the digital realm, with books, music and video excluded. Still, the currency is being sold at a bulk discount, meaning that you can save up to 10 per cent on online purchases compared to real currency. 10,000 Amazon Coins, for example, cost £90. It means that each online coin is worth a penny.

Smartwatches are unlikely to feature on many people's Christmas lists this year as they are "uninspiring in terms of design, available apps and features", according to research firm Gartner. The research released yesterday asserted that wearable devices such as smartwatches were unlikely to dominate consumer spending until they offer better value, and will remain as a companion device to mobile phones until at least 2017. "Samsung and other well-known vendors have recently entered the smartwatch space, yet the products we have seen so far have been rather uninspiring in terms of design, available apps and features," said Gartner analyst Annette Zimmermann.