Over half of local and central governments across Europe are using or planning to use private clouds hosted by third parties.
Meanwhile, 56% of local governments and 42% of central governments use or will use internally hosted private clouds.
The IDC Government Insights annual research surveyed government organisations in France, Germany, Italy, Spain and the UK.
It revealed that the main driver for these organisations to invest in cloud computing is cost efficiencies.
The analyst company said organisations should ensure that multiple departments use cloud if they are to truly benefit.
"IDC research suggests that internally hosted private clouds will not deliver relatively significant benefits to more traditional datacentre consolidation and virtualisation, unless they are run as multi-agency community resources,” said Silvia Piai, research manager of IDC Government Insights.
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IDC expects governments to increasingly move to the public cloud to reap the full benefits.
“As the market matures and Europe progresses and unleashes its full cloud potential, IDC expects public and hybrid cloud to gradually take over private cloud," said Piai.
UK government cloud computing – known as G-cloud – promotes government-wide adoption of cloud computing.
The initiative focuses on cloud computing's capability for economic growth and capitalising on cloud's cost savings and flexibility to create a more efficient, accessible means of delivering public services.