Cloud News & Insights

Cloud Computing Projected to Grow the European Economy by 2020



Governmental bodies are canvassing for expanded use of cloud computing because of potential economic gains. In October 2012, the EU’s Digital Chief claimed that “greater use of the internet to store and process data remotely (cloud computing) could boost the European Union’s gross domestic product (GDP) by 160 billion euro annually by 2020”. Undoubtedly, this encourages European businesses to migrate to the cloud. But how can this lead to national economic boosts?

First, moving data and other digital content to the cloud creates cost-cutting possibilities, drastically reducing annual overheads – especially in IT infrastructure.

Second, capital saved on hiring, training and maintaining IT personnel and in-house infrastructure can be channeled into a new business venture. Europeans can concentrate on creating more jobs while expanding business.

Third, cloud technology promises unprecedented speed of operations. Businesses can subsequently reduce or permanently abort downtime. Meanwhile, non-adopters of cloud computing face data loss, poor connectivity, slow performance and ineffective IT system operations.

Fourth, the EU’s digital Chief was mainly concerned about the competitiveness of the European economy. Neelie Kroes, EU Vice-president and digital Chief said that “without EU action, we will stay stuck in national fortresses and miss out on billions in economic gains.”

Since cloud computing entails eco-friendly systems, cloud technology can assist European businesses to maintain an admirable culture of sustainability and business continuity. Cloud computing makes it possible to store, retrieve and transmit digital files without paper.

The EU is calling on all members to proactively embrace cloud computing to create an environment for business continuity and higher profitability. The main purpose of the EU Data Chief’s clarion call is to make the bloc highly competitive with the North America, Asia and especially the “cloudy” Pacific.

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About the Guest Author:

Jerry Olasakinju

Jerry Olasakinju, a Bachelor of Technology (B.Tech) degree holder, is a passionate researcher and writer whose interest in everything computing is unparalleled. He blogs about his literary works at

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