Cloud computing, the use of information technology (IT) services via a network e.g. software, calculating capacity, storage, etc., is not only seen as a megatrend in the area of information and communication technologies in Germany but also worldwide. However, detailed economic analysis concerning the use of cloud computing, especially on business level, has not yet been conducted.For this project recent firm-level data will be analyzed to identify the determinants of the utilization of cloud computing. Furthermore, the effect of cloud computing on different aspects of business performance like productivity, employment and innovation behavior will be examined. The data used in the course of the project stems from the sixth wave of the ZEW ICT-survey (a survey that refers to German firms of the manufacturing and selected service industries), which was conducted in the third quarter  of 2014.