Cloud Services Adoption Rises for Small Businesses: Parallels Report

By Nathan Eddy  |  Posted 2012-02-16 Print this article Print

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 Parallels€“and service providers€“should 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).

Parallels SMB Cloud Insights outlines which hosting, cloud services and applications have the most current and future appeal for SMBs across four key categories€“hosted infrastructure (infrastructure as a service, or IaaS), Web presence, communications and collaboration, and hosted business applications. Parallels research also reveals the market-by-market demand for value-added hosted applications and services such as online backup, file sharing, accounting, e-mail archiving and Web conferencing.

€œParallels SMB Cloud Insights research continues to confirm that SMBs are at the forefront of cloud adoption,€ said Birger Steen, CEO of Parallels. 

Nathan Eddy is Associate Editor, Midmarket, at Before joining, Nate was a writer with ChannelWeb and he served as an editor at FierceMarkets. He is a graduate of the Medill School of Journalism at Northwestern University.

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