The country could create almost 20,000 jobs by rebranding itself a world leader in "cloud computing", a report has found.
Cloud computing allows people to store applications and software with companies and access them on demand over the internet.
"The potential of this thing is big and there really is a great opportunity, if there is some speed and urgency put behind this, to take a disproportionate share of the global cloud computing market in Ireland," said Paul Rellis, managing director of Microsoft Ireland.
He added that 'the cloud' could be worth €9.5bn to the economy by 2014.
Cloud computing has been described as the computing equivalent of linking into the electricity grid or gas network.
The technology cuts out the need for users to build and manage their own complex and costly systems.