As a cost cutting measure, the UK government could be considering cloud computing in the next 12 months.

According to the "2011 Trends To Watch: Government Technology" report by analyst firm Ovum, government departments would be asked to start using cloud facilities to reduce long-term expenditure.

Ovum analyst Jessica Hawkins said she expected to see consumption-based and shared delivery models gaining momentum in 2011, as agencies become more open to the efficiencies that a cloud-based approach can offer.

The government is likely to outsource its non-core functions and for business functions that can be automated using the cloud computing model.

In the new model, most of the infrastructure is owned and operated by vendors. Payments are based on what is used rather than just a flat-rate payment and it gives government departments the chance to make significant savings.