IT contractors helping firms to incorporate cloud computing data storage into their IT networks should be aware that the information stored in them will always be accessible by a third party.

This is the view of the managing director at Origin Storage, Andy Cordial, who says companies must ensure that any truly sensitive information is kept aware from cloud storage solutions.

He explained: "All clouds will be centrally administered by a third party and therefore out of your control.

"Managing centrally in-house is the most secure method but has a cost implication."

His comments come as Business Week published the results of a study which indicates that virtualised networks can save companies between 20 and 25 per cent on their data storage costs.

However, the research also found that many firms have misgivings about cloud computing because they are unable to tell exactly where their data is being kept.