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Virtualization Authors: Elizabeth White, Carmen Gonzalez, Liz McMillan, Pat Romanski, Linda Thayer

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Cloud Expo: Article

SMBs Are Looking to Cloud Service Providers for Bundled Cloud Services

Parallels Publishes New Industry Reports to SMB Cloud Insights Series

“We are pleased with the responses we are receiving from our service provider partners and will continue making a substantial investment in our expertise and knowledge initiatives,” said Birger Steen, CEO of Parallels, on the occasion of the publication of the latest report in the Parallels SMB Cloud Insights series.

Now entering its third year of annual publication, the research results continue to confirm that SMBs remain the fastest growing segment for cloud services and the optimal target market for service providers of all sizes, with the global market for SMB cloud services expanding at a 28 percent CAGR to $95 billion by 2015.

“Parallels SMB Cloud Insights research is core to our commitment to help service providers make both strategic and tactical decisions about the rapidly growing market for SMB cloud services,” Steen said.

In addition to offering the complimentary research reports, this year Parallels is furthering its investment in industry knowledge by enhancing its interpretations and conclusions of the data by leveraging a Kano analysis and conjoint analysis to provide guidance for optimizing cloud bundles and pricing strategies. Preliminary results from these deeper analytic efforts are being previewed at Parallels Summit 2013, and in-depth reports will be released later this year.

Some of this year’s Parallels SMB Cloud Insights research findings include:

  • Storage is a strong upsell opportunity for Infrastructure-as-a-Service providers, and 50 percent of SMBs are willing to pay more for increased storage.
  • Website building tools are a key way to differentiate service providers’ offerings. Currently, 22 percent of U.S. SMBs are building and managing their websites with such tools, and 30 percent report they plan to adopt website building tools by 2015.

The latest research reports include worldwide market sizing, forecast and penetration rates of SMB cloud services, along with country-level breakouts for the United States, Brazil and Mexico. Findings are being shared first with the attendees of Parallels Summit 2013 in Las Vegas, an annual event that attracts a global audience comprised of hosting partners, independent software vendors, systems integrators, industry analysts and press from across the world.

Additional Parallels SMB Cloud Insights research findings include:

  • Globally, the 2012 cloud services market has grown to $45 billion USD as at least 6 million SMBs entered the cloud market for the first time last year. The global market will continue to grow at 28 percent CAGR through 2015 to a forecasted $95 billion USD.
  • In the United States, the SMB cloud market is now $18.9 billion USD and is forecast to grow at a 19 percent CAGR through 2015. This growth is driven by SaaS applications, which saw 60 percent growth in 2012. Additionally, 68 percent of SMBs indicated they would prefer to buy their cloud services as part of a discounted bundle.
  • In Brazil, Parallels predicts the SMB market will grow by 33 percent year-over-year for the next three years, reaching $2.6 billion USD by the end of 2015.
  • In Mexico, the SMB cloud services market grew 30 percent last year and will continue to grow at 45 percent over the next three years, making it one of the world’s fastest growing SMB markets.

Parallels SMB Cloud Insights reports outline the cloud services that have the most current and future appeal for SMBs across four key categories: Infrastructure-as-a-Service (IaaS), Web Presence and Web Applications, Hosted Communication and Collaboration, and Business Applications (also known as Software-as-a-Service). The new Global, U.S., Brazil and Mexico reports mark the third year of ongoing research in the Parallels SMB Cloud Insights series, which now includes unique reports for 14 countries, including the United Kingdom, France, Spain, Germany, the Netherlands, Poland, China, India, Japan, Australia and Russia. Regional roll-ups are also available for Europe and Asia Pacific.

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