24 May 2010

Cloud computing 'impacted by Budget cuts'

The announced cuts to public spending could be good news for cloud computing providers, as thousands of UK organisations will now be looking to cut costs.

Martin Veitch wrote in an article for CIO UK that the cost-saving benefits of the cloud could make this form of IT infrastructure particularly attractive to businesses coming to terms with the reality of the economic situation in the UK.

He commented: "The public sector will provide some fascinating templates and best practices will follow. In particular, it will be interesting to see how Whitehall addresses questions of security and governance."

Mr Veitch added that the government needs radical new approaches if it is to bring the deficit under control.

Elsewhere, Larry Fisher, research director of next-generation research at ABI Research, recently said free cloud solutions that are available via the internet will continue to attract business users, as they are exceptionally good value and offer full functionality.