Cloud computing will drive an economic recovery in Europe, creating millions of jobs and generating billions in revenue and cost savings, according to an EMC and CEBR report
EMC has a sunny forecast for European businesses: the cloud
will generate 2.4 million jobs over the next four years.
If companies across Europe's five largest economies, the
United Kingdom, Germany, France, Italy and Spain, continue to adopt cloud
technology as expected, they will generate more than $243 billion in revenue
per year, EMC said in its Cloud
Part 2 on Feb. 24.
A little less than half of that amount, or $101 billion,
will be created through expanded business development opportunities and new
business creation, according to the Cloud Dividend report, compiled by the UK-think
tank Centre for Economics and Business Research. The report also analyzed the
impact of the cloud on vertical industries up to 2015.
"One of the key drivers for economic recovery will be job
," said Oliver Hogan, CEBR's managing economist. Cloud roll outs are
expected to produce 446,000 jobs each year in Europe, Middle East, and Africa
With cloud computing, businesses won't have to buy, develop
or maintain costly IT systems and applications. By switching to the pay-as-you-go
model, businesses can reap major cost savings. The financial benefit for cloud
computing will exceed $1 trillion dollars by 2015 as the businesses plow the
cost savings back into other business areas, the report found. The actual cost
savings from 2010 to 2015 will be about $193 billion, which will be in the form
of reduced capital expenditures, labor costs, and power and cooling costs,
according to the research.
The distribution, retail and hotel sector will see the most
benefit from cloud computing, with more than $320.5 billion in earnings and
354,790 jobs generated, according to the study. Banking and financial services
is expected to rake in$253 billion, followed by government, education and
health care with $155 billion, EMC said.
Manufacturing will see the smallest revenue stream at a
still-respectable $134 billion, but have strong growth, with 514,000 new jobs,
according to EMC. The public sector is expected to gain the most out of all
vertical markets, with over 800,000 new jobs expected as organizations shift
towards cloud services, the report found.
Out of the European countries, Germany would benefit the
most, followed by France, Italy, the UK and Spain, EMC said in the report. The
annual economic benefit of cloud computing by 2015 would be $68.2 billion in
Germany, $51.4 billion in France, $48.3 billion in Italy, $41.3 billion in the
UK and $34.7 billion in Spain, EMC predicted.
The study focused on public, private and hybrid clouds. The
total economic benefit of the private cloud alone will be over $82 billion in
2015, according to the research findings
Organizations get the "best of both worlds," with dynamic, on-demand,
self-service and scalable benefits of the cloud while retaining control within
the IT department for security and compliance reasons, EMC said.
Private clouds alone will also increase business development
and business creation across the five countries surveyed by $32.7 billion, EMC
Successfully virtualizing mission-critical and
revenue-generating applications will be critical to organizations looking for
the cloud's competitive advantage, according to Sandra Hamilton, EMC Vice
President EMEA. "That will be key to realizing the full cloud dividend," she
Although slower to adopt the technology than some other
sectors, the financial services industry is beginning to embrace the phenomenon,
according to the report. About 60 percent to 80 percent of all businesses in
the banking, financial and business services sector in Europe, Middle East and
Africa will have adopted some form of cloud computing by 2015, predicted the