Bloomberg News

U.K. Trails U.S. in Public Cloud Adoption, Salesforce CEO Says

September 14, 2011

Sept. 14 (Bloomberg) -- The U.K. government is “way behind” the U.S. in the adoption of public cloud services, according to Marc Benioff, chief executive officer of Salesforce.com Inc.

Benioff, who met with U.K. Cabinet Office Minister Francis Maude yesterday, said the government was too focused on building its own Internet-based computing and storage services, rather than using publicly available cloud systems.

“The government should stop hiding behind the private cloud” in this way, the CEO said.

In the U.S., Benioff and VCE, a cloud services provider founded by Cisco Systems Inc. and EMC Corp., sent a report to the Obama administration in July, urging it to accelerate government and commercial uptake of cloud computing. The global market for these services may rise to $148.8 billion in 2014 from $68.3 billion in 2010, researcher Gartner Inc. said.

Salesforce.com will build its first U.K. data center next year and is in talks with four vendors, Benioff said at the Cloudforce conference in London. The San Francisco-based company is seeking to provide more local bases for data storage to allay security concerns.

In the European Union, Commissioner Neelie Kroes, responsible for the region’s Digital Agenda, has asked providers and users of cloud computing to participate in talks about data protection and privacy as well as technical and commercial standards.

“The cloud is critical to Europe’s growth,” Kroes said in March. She said the EU needs to develop the right legal framework, encourage more technology research and push the public sector to use cloud computing.

--Editors: Simon Thiel, Robert Valpuesta.

To contact the reporter on this story: Jonathan Browning in London jbrowning9@bloomberg.net.

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


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