Feasibility studies funded by the TSB last year identified three key issues that presented a challenge for many organisations looking to adopt cloud - interoperability, resilience of data and identity assurance. The grant money will be distributed at projects looking to address these issues.

Through the 'Innovating in the Cloud' competition, which opens on 9 July, applications are invited for projects that demonstrate how new or improved value chains and networks can be created, and show where value can be increased by offering innovative information, content and services in the cloud.

There are two strands to the competition. The first will see projects being led by a small or medium sized enterprise (SME) and will benefit from up to 50 percent public funding. These projects will receive up to £75,000 each and must last between six and 12 months.

In the second strand, consortia must include at least one SME and one medium-to-large partner. These projects will also benefit from up to 50 percent public funding, which may reach up to £1 million, but must last between six and 24 months.

Further details of the competition can be found .