IT contractors and other small businesses still hold reservations about the suitability of Android-powered smartphones for business use, it is claimed.

Smartphone Daily editor Andy Betts says that as Google's operating system is largely cloud computing-based, many companies will not adopt them for their business.

Concerns remain over the company's data security, while many remain sceptical about the safety of virtualised information storage as a whole, Mr Betts explained.

Most firms prefer to have more control of their data that the Android system offers - an issue Google will need to address should it wish to make headway in the business smartphone market, he concluded.

Although they may not be proving popular with corporate users, handsets using the Google system are certainly proving popular with consumers, according to research from Canalys.

The industry analyst has found that shipments of Android-powered smartphones have grown by 886 per cent in second quarter of 2010.