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EU says cloud computing could boost GDP by €160bn

Greater use of the internet to store and process data remotely, also called cloud computing, could boost the European Union's gross domestic product by 160 billion euros [$205.96 billion] annually by 2020, the EU's digital chief said Thursday.

"Without EU action, we will stay stuck in national fortresses and miss out on billions in economic gains," EU Commissioner for the digital agenda Neelie Kroes said when setting out the bloc's new strategy."We must achieve critical mass and a single set of rules across Europe... We must tackle the perceived risks of cloud computing head-on."

The strategy, which is a non legally-binding set of guidelines, aims to set standards for cloud computing and remove cross-border barriers such as tax issues and conflicting data protection rules. The commission will work with the support of the European Network Security Agency, or ENISA, and other relevant bodies to set up EU-wide voluntary certification schemes in the area of cloud computing.

Cloud services vary from large-scale operations for major companies, such as those offered by Oracle Inc., Cisco Inc. and Amazon.com Inc., to consumer-focused products, such as Apple Inc.'s iCloud or Miscrosoft Inc.'s SkyDrive.

One reason for the EU setting out its strategy now is to encourage more European players in this area; Germany's SAP AG posted a 13% rise in profit in the second quarter, driven in part by its cloud computing operations, but most cloud computing firms are based in the U.S.

Under the new guidelines, users of cloud computing should be able to request that their data is stored in a specific region, if they wish. With regard to others' personal data, the existing EU Data Protection Directive requires data to either be stored in the European Economic Area or in a territory that has equivalent privacy laws.

The commission said a greater take-up of cloud computing could lead to the creation of 3.8 million jobs overall, including those in the wider economy as access to IT services becomes easier for smaller companies, compared with 1.3 million if the regulatory and other policy barriers aren't tackled.

"Cloud computing is a game-changer for our economy," Ms. Kroes said."Europe needs to think big."

Источник: Total Telecom

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