By Claire West

Britain’s rapid move out of recession experienced a blow as surprise figures revealed third-quarter growth of 0.7%, still healthy but below previous official estimates of 0.8%.

The full impact of the Chancellor’s £81 billion cuts will be felt early next year and coupled with increase in VAT will mean even more pressure on the economy.

Research by the Centre of Economics and Business Research (CEBR) reports that widespread adoption of cloud computing could give the top five EU economies a 763bn euro boost over five years and create 2.4m jobs. The report suggests that the rapid uptake of Cloud computing service offerings (will make them) progressively cheaper as economies of scale take hold and service offerings mature. The findings are backed up by analysts such as Gartner which predicts that by 2012, 20% of companies will not own their own IT assets.

Piers Linney, joint CEO of world leading Cloud services and unified communications company Outsourcery, a founder member of the Cloud Industry Forum (CIF), said, “Finding ways of becoming more efficient and reducing costs has become a matter of survival at a time when businesses are finding their feet after one of the worse recessions in history.

The Cloud saves businesses money, increases productivity, reduces risks, increases flexibility and transfers what were fixed costs in to variable costs. It is becoming clear that Cloud computing is going to achieve mainstream adoption in 2011 as businesses realise the benefits and that Cloud service providers can offer security and resilience that even large corporates are unable to afford. The figures coming out of the CEBR even suggest that Cloud could play an integral part in Britain’s recovery.”

He continued, “A number of technological, societal and economic developments have aligned at the same time that will ensure that the Cloud is absolutely the future home of computing power. The Cloud computing revolution will transform the way all business interface with technology and communications, and marks the next wave of the fundamental changes that the evolution of the Internet has already brought about.”