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European companies should gird for big cloud spending

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European governments and businesses better brace themselves for some pretty dramatic investment in cloud computing, according to a new story. The Brussels-based publication cited as its source a leaked copy of an upcoming European Commission report on cloud computing strategy commissioned by EC VP Neelie Kroes.

The money quote (so to speak):

Governments and industry should invest €45 billion in cloud computing by 2020 as part of an EU strategy to generate an estimated €900 billion in GDP and an additional 3.8 million jobs by the end of the decade.

Those are pretty impressive numbers especially given the rocky economic situation in Europe.  The current overall EC GDP is about €12.6 trillion. The EC press office could not be reached for comment.

Last January, Kroes brought together local public agencies and private companies in a €10 million European Cloud Partnership to lay groundwork for moving government agencies’ IT systems to the cloud.

Cloud computing adoption varies across Europe but is generally seen lagging that in US although  it’s hard to make sweeping generalizations across 27 EC member countries. The UK, for example,  has already moved much of its citizen-facing government services to cloud with its government cloud effort.

European cloud spending and adoption trends will be among the hot topics discussed at GigaOM’s Structure Europe conference in Amsterdam next month.

Photo courtesy of  Flickr user DamienHR

One Response to “European companies should gird for big cloud spending”

  1. Will governments fund all the cloud development projects or will private companies? This is an interesting question given Silicon Valley is composed of private start ups that as we know are extremely successful. In terms of a good cloud company, I recommend everyone check out 4sync, they give 15gb of free space.