The benefits of cloud computing are beginning to appeal to more and more users, however new research shows that consumers are still wary of entrusting their personal details to 3rd parties.

Inspired by the cloud symbol that often represents the Internet, cloud computing allows users to access their data, collaborate, and run software anywhere they can access the Web.

While convenient it requires users to trust their information is safe, and this presents the biggest challenge to the growing industry.

Not only is it imperative for cloud providers to ensure that access to and storage of customer data is secure, but that the procedures that they put in place in this regard - including data backup strategies - are transparent to the customer, said Juniper Research analyst Windsor Holden.

Still, annual revenues from cloud-based mobile applications will reach nearly $9.5 billion by 2014, Juniper says.

Enterprise application will comprise a large part of this market as companies seek to keep their employees connected.

However, consumer-oriented apps will comprise an ever-larger proportion of total revenues, derived both from time-based subscriptions to services such as mobile online gaming and advertising from cloud-based social networks.