A survey released by RackSpace shows that businesses just don't undertstand the concept of cloud hosting. The findings show that more than half of UK (57%) and US (58%) businesses are unaware of the term.

Perhaps part of the confusion resides in the dual nature of the cloud, meaning both businesses and consumers use the cloud, but do so in different ways. Businesses use the cloud to host applications, and consumers tap the cloud to use those applications.

Most UK businesses (43%) defined cloud hosting as 'remote and multiple servers accessed via the internet.' In the US this was also the most popular answer (29%). Other responses from the UK included 'applications via the internet' (31%), 'virtualisation' (14%) and 'online storage' (8%), with a similar pattern being found in the US. However 27% of UK businesses 'don't know how they would use cloud hosting as part of their IT mix'. A third of US businesses (33%) agreed with this statement.

Lew Moorman, chief strategy officer at Rackspace Hosting, said: "Cloud technology is ideal for the current economic climate, but it is vital that businesses understand how it can best serve their organisation. At Rackspace we want to provide clearer guidelines on how they can get the most out of this technology as a matter of urgency. That is why we are launching a new cloud clinic web site."

Fortunately for those that have yet to grasp the "cloud" and its benefits for businesses and consumers, RackSpace has created a "cloud clinic" to "demystify the cloud".