UK businesses too slow to implement cloud computing

UK businesses too slow to implement cloud computing

A new report by Forrester has suggested that two-thirds of companies across the UK are yet to recognise the benefits of using a cloud computing system instead of an on-site IT service, meaning that many may struggle to compete with international rivals.

The number of businesses relying on hardware rather than software in the UK is proportionally higher in Britain than in any other country on the continent, and experts have warned that such a reluctance to adapt could hold back any progress for the British economy.

Almost a third of all IT spending in the UK is used on setting up onsite solutions, while investment in software-based infrastructure like the cloud has only managed to grow by a tenth over the past year.

The report noted that there were trends among business that adopted the cloud and those that did not.

For instance the number of organisations within the financial sector to use cloud technology was extremely small compared to the firms in the utilities and telecoms sector, with nearly half choosing to turn their backs on traditional hardware solutions.

According to Forrester's Andrew Bartels, there are a number of explanations for such a trend.

He told V3.co.uk that the main reason that businesses within the financial services sector were so reluctant to make the move to the cloud was due to the fact that many remain unconvinced that it can offer the same level of data security as on-site hardware.

But while the UK is starting to falter in one area of technology, it is beginning to excel in another, namely that of mobile computing, which the study suggests is now favoured by around 60 per cent of British companies, ahead of international rivals such as France and Germany.

Mr Bartels believes that the main reason for the high numbers is down to the fact that many major retailers across the country are recognising the benefits of using mobile applications to engage with both employees and customers.