The majority of the UK's small and medium-sized businesses will be using 'cloud software' solutions in some form by the end of 2010, according to a survey by Gooroo Software.

Cloud computing is when software and data is hosted in a secure location somewhere on the internet - meaning that a business can access their files and emails form any computer in the world.

The survey found that 12% of SMEs are already using cloud software solutions, 31% plan to use this technology by summer 2010 and a further 12% by the end of 2010.

65% of respondents said that they expect cloud computing to reduce their IT costs and 50% said that it would provide their firm with greater efficiency and flexibility.