Last month, at Parallels Summit 2013, we released our latest SMB Cloud Insights™ Market Outlook reports. These reports focus on current market size and future opportunity for major cloud services being consumed by small and medium businesses (SMBs), including Infrastructure as a Service (IaaS), web presence, communication & collaboration, and business applications (SaaS).
Parallels research reveals that the worldwide market for SMB cloud services has reached $45 billion – a growth of 30% since last year. We predict that the market will continue to grow at a blistering rate through 2016, reaching $95 billion at the beginning of that year.
What has changed around the world in the past year? First, in mature cloud markets, like North America and most of western and northern Europe, growth is slowing in traditional hosting. The markets for services like web hosting and VPS hosting are mostly saturated in these countries, and we only expect to see single digit growth rates in these services moving forward. The overall SMB cloud market in these countries still has excellent opportunity, however, as SMBs start to adopt business applications and collaboration tools in a big way. For example, in the US, business applications market size alone grew 60% over the past year, reaching nearly $7 billion.
We’ve seen tremendous growth in maturing cloud markets in the past year, including most of Latin America, southern and eastern Europe and the Middle East. These countries have reached a tipping point in their internet penetration, where a critical mass of small businesses now has access to the Internet and therefore to cloud services. We expect growth rates in these countries to exceed 30% over the next several years, as SMBs rush to get their businesses online and to take advantage of more advanced IT capabilities through the cloud.
Finally, less than one-third of the countries in emerging markets have access to the Internet, keeping cloud market size relatively small. However, we see strong opportunities in “entry level” cloud services, like web hosting and selected business applications, over the next several years, particularly in countries where Internet infrastructure is rapidly expanding. The widespread use of mobile devices in the developing world will also impact how the cloud is experienced by both small businesses and their customers and will be an interesting trend to watch moving forward.
To learn all about the latest trends from our SMB Cloud Insights™ research, join us for a webinar on March 26 at 8 a.m.(PDT), Parallels SMB Cloud Insights™ for 2013: Top Trends You Must Consider to Compete in the Cloud – Register today. You can also download all of Parallels SMB Cloud Insights™ reports on Parallels PartnerNet or at www.parallels.com/smbreport.
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March 19-21 in Europa-Park in Rust, Germany
Parallels is a Diamond sponsor for WHD.global 2013. We invite you to join us to explore the latest business opportunities in web hosting.
Parallels SMB Cloud Insights™ for 2013: Top Trends You Must Consider to Compete in the Cloud
March 26 at 8 a.m. (PDT) / 11 a.m. (EDT) / 4 p.m. (CET) In the past year we’ve added new countries, asked new questions, and introduced deeper analysis of the SMB cloud market. Make sure you know what it takes to compete in the cloud.
Parallels is a Diamond sponsor for WHD.global 2013 at Europa–Park in Rust, Germany, March 19–21. We invite you to join us to explore the latest business opportunities in web hosting.
Parallels is presenting two special interest groups at WHD.global 2013. Learn about the Parallels products in depth, the product roadmaps and give feedback that will help drive product directions.
Parallels Plesk Panel: be the first to know what we have planned for the next generation of Parallels Plesk Panel.
When: Wednesday, March 20 from 10:00 a.m.-12:00 p.m. & Thursday, March 21 from 2:00 p.m.-4:00 p.m.
Please email us at to let us know which SIG you would like to attend.
Additional reasons to attend:
If you would like to arrange a meeting with Parallels at the event, please send an email to: . We look forward to meeting you in person! Register now for WHD.global 2013.
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