Neelie Kroes vice-president of the European Commission responsible for the Digital Agenda believes Cloud Computing will change its economy.
 

In a speech to the World Economic Forum – Davos Switzerland – said it can bring significant productivity benefits to all, right through to the smallest companies, and also to individuals.
 

“It promises scalable, secure services for greater efficiency, greater flexibility, and lower cost,” she says.
 

“Our flagging economies need us to make the best out of this. We cannot afford anything less. We need to act to support speedy uptake of Cloud Computing in Europe.”
 

According to Kroes since making his announcement - this time last year – on plans to a Cloud Computing Strategy that would make Europe not just cloud-friendly but cloud-active, consultations with cloud providers, users and consumers have been extensive.
 

Much work has also been done by interested parties in Europe and with major trading partners to identify the main issues that need to be addressed.

However she believes many still hesitate before the cloud.
 

“They worry: how do I know what service I am buying? Will my data be protected? Which providers can I trust? If I don't like what I am getting, can I switch providers easily? Or, if I really don't like what I'm getting, can I easily enforce the contract through legal action?” she says.
 

“All these issues – standards, certification, data protection, interoperability, lock-in, legal certainty and others – are particularly troublesome for smaller companies.
 

“They are the ones who stand to benefit the most from the Cloud – but who don't have a lot of spending power, nor resources for individual negotiations with Cloud suppliers.”
 

He states where these barriers exist he’s determined to overcome them.
 

“We have already made a start on the regulatory side - the Commission has proposed new rules for data protection in the twenty-first century, including for data in the Cloud,” she says
 

“But we can do more. Look at the public sector. Public IT procurement is large, about twenty percent of the market, but today it is fragmented with limited impact.
 

“We can harness this buying power through more harmonisation and integration. And, yes, ultimately also through joint public procurement across borders. Why is this important? Because the Cloud sector will listen and adapt, creating benefits for Cloud adoption throughout our economy.”
 

For example, more standardised services, new and better offers, cheaper prices and it’s a true win-win - the cloud market will grow, bringing opportunities for existing suppliers and new entrants.
 

“Cloud buyers, including the public sector, will buy more with less and become more efficient,” Kroes says.