11 Dec 2008

Cloud computing helps firms 'battle the crunch'

Companies have been able to use cloud computing technology to tackle the effects of the economic downturn, reports Computer Weekly.

Kennedys, an insurance firm, has used cloud hosting because it has the potential to generate thousands of pounds in cost savings.

By storing data on an external server, the business has predicted that it will save around £350,000 each year.

Cost reductions on hardware and software maintenance bills were areas highlighted by the company.

Rowanmoor Pensions, meanwhile, reportedly said it will save about £200,000 a year from cloud computing.

Cost savings will be generated by the cloud model because less money will be spent on running IT devices, such as onsite servers, the article noted.

It comes after IT expert David Mitchell Smith predicted that cloud computing will "revolutionise" the industry in the near future, the Hindu newspaper reported.