Cloud adoption could help the UK achieve economic benefits of £100.7 billion over the six-year period from 2010 to 2015, according to a study by the Centre for Economics and Business Research (CEBR).
This includes cumulative net total cost savings of £22.4 billion, which involves IT capital savings and operational savings, such as labour, power and cooling. The rest of the economic benefits would be delivered through business development opportunities (£25.2 billion), business creation (£17.1 billion) and other indirect benefits.
The findings were reported in ‘The Cloud Dividend’, a study by the CEBR on the economic benefits of cloud computing to business and the European economy. The report was commissioned by data storage and solutions provider EMC.
Hybrid cloud adoption is expected to be the main type of cloud adoption in the UK, accounting for 33 percent of the total economic benefits. This was followed by 33 percent in private cloud adoption and 23 percent in public cloud adoption.
“Each of the private, public and hybrid models is assumed to have different levels of cost-saving potential, with hybrid ranking the highest, followed by public and then private,” said the CEBR.
“Thus, for example, the UK is expected to achieve higher levels of hybrid cloud adoption than any of the other countries, which will drive higher levels of cost savings for any given general adoption levels.”
Cloud computing adoption will also drive a jobs growth, the CEBR report said.
In the UK, 289,000 jobs are expected to be generated cumulatively over the 2010 to 2015 period, contributing to the more than 2.3 million jobs that are expected to be created across France, Germany, Italy, Spain and the UK. The net annual figure for all five economies is forecast to be 446,000 new jobs.
Commenting on the UK jobs generation, CEBR said: “These jobs can, at least in the short run, be considered as a net impact.
“However, if the structural features of the economy lead employment back to its pre-cloud equilibrium level, then any temporary boost in the workforce will vanish over time.”
Overall, the CEBR found that cloud computing could improve the efficiency of an average employee by an average of 2.1 percent, while “also reducing the amount of investment tied up in underutilised IT capacity.”