Small Businesses Cloud Spending to Top $95 Billion by 2015

 
 
By Nathan Eddy  |  Posted 2013-02-06 Email Print this article Print
 
 
 
 
 
 
 

In the United States, the SMB cloud market is now $18.9 billion and is forecast to grow at a 19 percent CAGR through 2015.

The 2012 cloud services market has grown to $45 billion as at least 6 million small and midsize businesses (SMBs) entered the cloud market for the first time last year, and the global market will continue to grow at 28 percent compound annual growth rate (CAGR) through 2015 to a forecast of $95 billion, according to hosting and cloud services enablement specialist Parallels’ SMB Cloud Insights report.

The report also found storage is a strong upsell opportunity for infrastructure-as-a-service (IaaS) providers, and 50 percent of SMBs are willing to pay more for increased storage. The research also indicated 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. Just under one-third (30 percent) reported they plan to adopt Website building tools by 2015.

In the United States, the SMB cloud market is now $18.9 billion and is forecast to grow at a 19 percent CAGR through 2015. The report said growth is driven by software-as-a-service (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.

Parallels calculated the SMB market at the end of 2011 to be $15.1 billion across all categories of cloud services. Hosted infrastructure contributes $5.9 billion to this market, Web presence services contributes $2.7 billion, hosted communication and collaboration (including premium business email and hosted PBX) adds $2.2 billion, and business applications, also known as SaaS, account for the remaining $4.3 billion.

In the past year, 7 percent more SMBs entered the server market, including purchasers of both in-house and hosted servers. Of these new market entrants, 60 percent went straight to the cloud, and the remaining 40 percent purchased in-house servers. The report noted the new server adoption trend is especially marked among micro SMBs, where overall server penetration grew by 13 percent—these SMBs were three times more likely to go to the cloud than to buy in-house infrastructure, the report noted.

“The U.S. cloud market for SMBs is growing rapidly. Increasing numbers of SMBs are rushing to leverage the value of the cloud, which gives them enterprise-level computing power, applications, and services at prices they can afford,” the report said. “In 2011 alone, a million U.S. SMBs have started using cloud services. We expect this growth to continue as more and more SMBs realize the benefits the cloud can bring to their businesses.”

Now entering its third year of annual publication, the report indicates SMBs remain the fastest growing segment for cloud services and the optimal target market for service providers of all sizes. 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.

 
 
 
 
 
 
 
 
 
 
 
 
 

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