UK firms are set to adopt cloud technology in high numbers over the next five years, it has emerged.

Cloud technology is a style of computing in which IT-related capabilities are provided “as a service”, allowing users to access technology-enabled services from the Internet ("in the cloud") without knowledge of, expertise with, or control over the technology infrastructure that supports them. 

Potential cost savings and opportunities for increased mobile and flexible working are the reasons why businesses are considering cloud computing and software-as-a-service (SaaS) technologies, according to research by internet access suppliers Easynet Connect.

The study found that 47 per cent of small to medium-sized businesses in the UK are planning to adopt cloud computing in the next five years.

SaaS applications along with modern communications solutions such as VoIP can be used for virtual working, thereby saving on resources and costs.

Chris Stening, managing director or Easynet Connect, said: “Clearly, SMEs are eager to embrace the many advantages that cloud computing and SaaS offers them."

Cost savings, at 35.2 per cent, are the most popular reason why firms are considering cloud computing or SaaS technology, while 34 per cent were most attracted to the increased opportunities for mobile working, the group said.

A recent Economist Intelligence Unit survey found that four in ten executives believe that Web 2.0 technologies will be the best method for firms to target millennial customers - people born between 1982 and 2001.

Living Streams' comment:  typical 'cloud'  applications which we recommend and supply are hosted services such as email marketing, business VOIP systems and business process documentation.