Cloud computing is every bit the game changer some investors believe it to be. So says a new survey commissioned by Rackspace Hosting (NYSE:RAX)and conducted by Manchester Business School, which found that U.S. businesses cut total IT costs by 26% using cloud computing.

Sixty-two percent of study respondents from 1,300 U.K. and U.S. businesses agreed that cloud computing had helped them boost profits and a whopping 94% of U.S. participants said using the cloud saved them money. Importantly, 92% of start-up companies said using the cloud made it easier to set up operations, a notion widely shared among venture capitalists.

Can Rackspace take advantage of these favorable industry dynamics in spite of talk of a so-called "price war" with its closest competitor, (NASDAQ:AMZN)? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses this question and more in the video below. Please watch, and then leave a comment to let us know what you think.

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