Story from BBC NEWS: The UK will spend over £1 billion on cloud computing by 2012 – twice as much as today – researchers predict.This would mean more consumers and businesses subscribing to web-based services, such as Google Apps. Cloud computing means that people do not have to invest in powerful computers and software to store their data. Instead, they can outsource their needs to cloud companies, which charge subscription fees.
Cloud-based services currently account for around 7.5% of the £8 billion UK software market, according to research company TechMarketView.
But others say cloud computing is hyped and will complement traditional desktop software rather than replace it.
"In the old days, big companies used to generate their own electricity. But they do not do that any more", said Philip Carnelley, senior analyst at TechMarketView.
"Software is going the same way – let others do the processing."
TechMarketView predicts cloud services will be worth around £1.2 billion per year in the UK by 2012.