Cloud services refer to the use of Internet space to store or process data remotely. Cloud computing is continuing to revolutionize the IT space due to the fact that it reduces hardware components and the associated infrastructure required at any company.

Cloud services adoption is growing across all verticals including government departments. While there are concerns over security of the data shared over the cloud, service providers are optimistic that such concerns will not prevent the widespread adoption of cloud because its benefits surely outweigh the disadvantages.

According to recent findings released by the EU Commission, a greater take-up of cloud computing could lead to the creation of 3.8 million jobs overall, as it makes access to IT services easier for smaller companies. However, to achieve this, the EU must tackle regulatory and other policy barriers surrounding cloud services.

Considering the rapid adoption of cloud services in the European Union, the EU Commissioner for Digital Agenda Neelie Kroes recently said cloud computing could boost the European Union's gross domestic product by 160 billion euros ($205.96 billion) annually by 2020.

Thus, the organization has created a new strategy to encourage participation from more European players in cloud computing. Germany's SAP (News - Alert) is one of the major players in the cloud services market, but most cloud computing firms are based in the U.S. SAP posted a 13 percent rise in profit in the second quarter, driven in part by its cloud computing operations.

The strategy aims to set specific standards for cloud services in addition to removing cross-border barriers such as tax issues and conflicting data protection rules. The commission also plans to work with the European Network Security Agency, or ENISA, and other relevant bodies to set up EU-wide voluntary certification schemes in the area of cloud computing.

"Without EU action, we will stay stuck in national fortresses and miss out on billions in economic gains," Kroes added. "We must achieve critical mass and a single set of rules across Europe... We must tackle the perceived risks of cloud computing head-on."