07 Jun 2010

Cloud services 'help firms become more responsive'

Companies have been advised that the uptake of cloud services could see them become more flexible and responsive to consumer needs.

Max Hammond, a consultant at Curtis+Cartwright, said on-demand services can help to reduce the amount of capital investment firms need to make up-front, freeing up funds for other areas.

Furthermore, it can help to improve efficiency and ensure issues are dealt with swiftly and effectively by staff.

He commented: "It's important to conduct a careful analysis of your needs and to consider the risks involved in using external services - it may not be any riskier than hosting your own systems."

According to figures from market intelligence firm International Data Corporation, the enterprise cloud server hardware market will reach $12.6 billion (£8.4 billion) by 2014.

Server revenue for public cloud computing will grow from $582 million in 2009 to $718 million in 2014, while the much larger private cloud market will grow from $7.3 billion to $11.8 billion in the same time period.