The new strategy presented by the European Commission to drive European business and government productivity via cloud computing, is based in "unleashing the potential of cloud computing in Europe". The actions foreseen seek to deliver a net gain of 2.5 million new European jobs, and an annual boost of €160 billion to EU GDP by 2020.

'Cloud computing' refers to the storage of data (such as text files, pictures and video) and software on remote computers, which users access over the internet on the device of their choice. In a Communication entitled "Unleashing the potential of cloud computing in Europe", the European Commission proposes measures to get 2.5 million new European jobs, and an annual boost of €160 billion to EU GDP (around 1%), by 2020. The EU-funded project, Eurocloud, also seeks to make the "cloud" greener.

Among the measures proposed, the strategy includes cutting through the jungle of technical standards so that cloud users get interoperability, data portability and reversibility; also support for EU-wide certification schemes for trustworthy cloud providers; the development of model 'safe and fair' contract terms for cloud computing contracts including Service Level Agreements; and a European Cloud Partnership with Member States and industry to harness the public sector's buying power (20% of all IT spending) to shape the European cloud market, boost the chances for European cloud providers to grow to achieve a competitive scale, and deliver cheaper and better eGovernment.

According to the Commission, the benefits of the Cloud come from its economies of scale. 80% of organisations adopting cloud computing achieve cost savings of at least 10-20%. Also significant productivity gains are to be expected if wide adoption across all sectors of the economy can be achieved.