By 2015 the contribution of cloud computing to economy of five most developed European countries will be 177.3 billion euros a year

Authors of the report of CEBR came to conclusion that if in Great Britain, Germany, Italy, Spain and France implementation of cloud computing is they will proceed the expected rates, then by 2015 they will bring to economy of these countries 177.3 billion euros a year. It is important to note that the lion share of these means as shows a research, will be provided due to mastering of private and hybrid models of cloud computing.

CEBR counted that annual economic effect of cloud computing for each country by 2015 will be:

• Great Britain 30.0 billion euros
• Germany 49.6
• Spain 25.2
• Italy 35.1
• France 37.4

177.3 billion euros can cover the loans granted to some debitor countries of the region such as Ireland (85 billion euros) and Greece (110 billion euros), and will help the government of Great Britain to implement the plan of cut in public expenditure for 95.7 billion euros in four years which it announced recently.

Cloud computing is a new approach to IT at which technologies become available to the enterprises in the necessary volume and when they need them. It accelerates time of an output of goods for the market, removes traditional barriers to entry and allows the companies to use new commercial opportunities. Strengthening the competition, this direct effect of cloud computing will have a huge impact on structure of the market in many sectors of economy and consequently, and on world macroeconomic indicators, CEBR claims.

CEBR considers that cloud computing will become an important factor of economic growth, competitiveness and creation of the new enterprises for the whole eurozone. It emphasizes the importance of this technology for economic recovery of the region, in particular, in the face of the growing threat from emerging economies which traditionally receive benefit from more intensive competition.

The research is concentrated on three most widespread models of cloud computing: a public cloud which is under control of service provider; private cloud which is under control of own IT department of the organization; and a hybrid cloud which represents a combination of the first two models.

CEBR predicts that by 2015 133 billion euros, or 75% of the cumulative annual economic effect in 177.3 billion euros, is necessary on non-public models of cloud computing. The model of a private cloud allows to kill two hares at once: the organizations receive the dynamic, provided on demand, self-serviced and scalable services of cloud computing, but at the same time control remains in hands of IT department so security requirements and controllability are not violated.

In the course of the research CEBR found out also that the private cloud will make a contribution to acceleration of rates of development and creations of the new enterprises in the amount of 23.8 billion euros. The resulting indirect and derivative investments and the total costs will create the additional goods demand and services which, in turn, will increase the gross added value (GAV) and degree of employment in economy. CEBR predicts that till 2015 indirect economic benefits as a result of additional VDS in all five countries will make in total 280 billion euros — 60 billion a year — and that the indirect and induced employment during the period between 2010 and 2015 can reach 2,396,000 workers.

Cloud computing will help the companies not only to use favorable opportunities for business expansion, but also to reach significant savings of expenses. The model of payment for actually received services leads to decrease in capital costs (CAPEX) and current expenses (OPEX), a fast investment payback and more effective redistribution of resources. This economy can be reinvested, encouraging innovations, increasing competitiveness and directly improving profitability, i.e. gives notable positive effect for economy of the countries.

• This cost category is entered for a private cloud by accounting of economy of capital and current expenses at lower levels of the enterprise. When using hybrid model of a public and private cloud economy of capital and current expenses at the enterprise level is higher, but at the same time it is possible to expect also new expenses on external cloud services.

Methodology

In the report "Cloud dividends" the economy (capital costs and current expenses) received by the companies as a result of implementation of services of cloud computing is counted and influence of this economy on macro - and corporate economic indicators, such as favorable opportunities for business development is measured; creation of the new enterprises; indirect gross added value (GAV); contribution to payment of taxes; and also expenses on services of cloud computing for the purpose of determination of economic value of this technology for each country.

"Cloud dividends — 2011" — the first in the scraper from two reports. In the second report which will appear in February, 2011 economic effect and influence of cloud computing on specific industries of economy of France, Germany, Italy, Spain and Great Britain will be considered.

The report can be loaded from the page: http://uk.emc.com/microsites/2010/cloud-dividend/index.htm