[bbc] The UK will spend over £1 billion on cloud computing by 2012 - twice as much as today - researchers predict.
This would mean more consumers and businesses subscribing to web-based services, such as Google Apps.
Cloud-based services currently account for around 7.5% of the £8 billion UK software market, according to research company TechMarketView.
But others say cloud computing is hyped and will complement traditional desktop software rather than replace it.
"In the old days, big companies used to generate their own electricity. But they do not do that any more", said Philip Carnelley, senior analyst at TechMarketView.
Cloud computing to double by 2012