Cloud Services Adoption Rises for Small Businesses: Parallels Report
SMBs continue to lead the adoption of cloud services, as the U.S. market experienced a 25 percent increase in 2011, growing to $15.1 billion.Parallels, a hosting and cloud services enablement provider, released the latest updates of Parallels SMB Cloud Insights, its series of research that profiles the cloud buying behavior of small to midsize businesses (SMBs), the fastest-growing segment for cloud services. The survey results continues to confirm why Parallelsand service providersshould remain laser-beam focused on meeting the demand for SMB cloud services, as most SMBs plan to double their purchase of cloud applications over the next three years. The report found SMBs continue to lead the adoption of cloud services, as the U.S. market experienced a 25 percent increase in 2011, growing to $15.1 billion. SMB cloud adoption is a global phenomenon not limited to North America, as the worldwide SMB cloud market is expected to expand at a 26 percent compound annual growth rate (CAGR) to $68 billion by 2014. In addition, SMBs with less than 20 employees are at least three times more likely to choose cloud services over on-premise services.
Small businesses are rapidly moving beyond basic Web presence, with 45 percent of SMBs in the U.S. now managing a Facebook page to promote their business. In addition, the report indicated SMBs plan to double the amount of paid cloud applications they purchase in the next three years, with the size of the SMB determining which applications are critical (micro and small SMBs seek apps like backup, file-sharing and accounting and e-mail achieving; while midsize businesses are seeking phone conferencing services).