Economic Consequences of the Diffusion of Cloud Computing, The

Innovation and Economic Growth, Networks, the Internet, and Cloud Computing and Cloud Computing

Article Snapshot


Federico Etro


in Global Information Technology Report 2009-2010, Soumitra Dutta and Irene Mia, eds., Geneva: World Economic Forum, pp. 107-112, 2010


This chapter discusses the expected effects of the spread of cloud computing on macroeconomic growth.

Policy Relevance

Governments can take steps to speed cloud computing adoption, and can expect increased economic growth and employment.

Main Points

  • Cloud computing allows consumers or firms to access software and data remotely and on-demand, reducing the need for on-site computer equipment or software.

  • Cloud computing lowers the cost of starting a firm, which in turn encourage business formation.

  • Moreover, all existing firms that use information and communication technology can expect to see their costs reduced when utilizing cloud computing services.

  • Economic growth can be expected to increase by at least a few tenths of a percentage point as cloud computing solutions are adopted.

  • Policymakers can maximize these benefits by:
    • Easing restrictions on cross-border data transmission

    • Setting standards

    • Expanding broadband capacity

    • Providing financial incentives for cloud computing adoption

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