15 Takeaways from Parallels Summit 2014

According to Ashar Baig, President and Principal Analyst and Consultant at Analyst Connection, the top 15 takeaways from Parallels Summit are...

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New Parallels SMB Cloud Insights™ Research Continues to Show Strong Growth Within All Segments

The new research is in, and the results are impressive. The Parallels SMB Cloud Insights™ research results continue to show a massive SMB cloud opportunity for service, with the global market reaching $62 billion in 2013 and projected to expand at a 26% CAGR to $125 billion by 2016.

This marks the fourth year Parallels has interviewed SMBs of different sizes, industries and countries about their cloud service consumption, future plans and attitudes.

New research for the U.S., Mexico, and Brazil includes these key findings:

  • In the United States, the SMB cloud market is now $24 billion and is forecast to grow at a 17% CAGR through 2017. This growth is driven by Unified Communications and other online Business Applications, which are projected to grow at 32% and 16% CAGR respectively through 2017.
  • In Brazil, Parallels predicts the SMB market will grow by 31% CAGR through 2017, reaching $4.0 billion in 2017.
  • In Mexico, the SMB cloud services market is growing at 36% CAGR from just over $650 million in 2014 to over $1.5 billion, continuing to make it one of the world’s fastest growing SMB markets.

Across the four cloud sub-segments: Infrastructure-as-a-Service (IaaS), Web Presence and Web Applications, Communications and Collaboration, and Business Applications (often called Software-as-a-Service) – SMBs are rapidly adopting cloud services. For example, in mature markets, SMBs are already using an average of five cloud services and are expected to use nine discrete cloud services by 2016.

IaaS Growing at 27% CAGR

IaaS, which includes VPS, dedicated hosting, and cloud servers–is expected to top $42 billion by the end of 2016, representing a 27% CAGR.

From 2012 to 2013, IaaS grew by 28% globally, from $15.9 billion to $20.4 billion. Top add-ons for hosted servers included security, database add-ons, and server backup, and the top hosted server applications included web server and database applications.

From a geographic region perspective, IaaS will continue to grow strongly across all regions, with the strongest growth coming from Latin America, EMEA, Asia Pacific, and North America, respectively. For the first time, by 2016, the European market at $13.1 billion will be larger than the North American market at $12.1 billion.

Web Presence Continues to Grow in All Markets

The Web Presence and Web Applications market grew in 2013 from $10.2 billion to $13.8 billion, with the greatest gains coming from maturing and developing markets, due to the fact that many businesses in these markets are still continuing to add websites.

Over the next three years, growth in mature markets will slow to 6% CAGR, while maturing and developing markets will continue to see strong growth at 23% and 30%, respectively. North America represents the most mature market and will see only a 5% growth rate, compared to 18-20% growth for the rest of the world.

Hosted Communication and Collaboration is Fastest Growing Category

Hosted Communication and Collaboration, which includes business-class email and hosted PBX services, is significantly outpacing the overall market, growing from $4.8 billion in 2012 to $6.5 billion in 2013, and expected to grow at a staggering 46% CAGR reaching $20 billion by 2016.

All geographic regions are expected to grow strongly, doubling and tripling in market opportunity between now and 2016. Comparing 2013 to 2016, regions are projected to see the following growth:

  • North America: From $3 billion to $6.8 billion, 32% CAGR
  • Europe: From $1.5 billion to $5.8 billion, 57% CAGR
  • Asia Pacific: From $855 million to $3.5 billion, 58% CAGR
  • Russia, Middle East, Africa: From $552 million to $1.9 billion, 51% CAGR
  • Latin America: From $526 million to $2 billion, 55% CAGR

Business Applications Growing at 26% CAGR

Business Applications represents another huge opportunity for growth in the coming years, growing at 26% CAGR from a $21 billion market in 2013 to a $42 billion market in 2016. Comparing 2013 to 2016, regions are projected to see the following growth:

  • North America: From $8.8 billion to $16.4 billion, 23% CAGR
  • Europe: From $5.1 billion to $9.9 billion, 25% CAGR
  • Asia Pacific: From $3.3 billion to $7.8 billion, 33% CAGR
  • Russia, Middle East, Africa: From $2.1 billion to $3.9 billion, 23% CAGR
  • Latin America: From $1.7 billion to $3.6 billion, 27% CAGR

Top business apps being used are Instant Collaboration, File Sharing, and Online Backup. Of note, in our 2014 research, we are reclassifying Instant Collaboration (along with Web Conferencing) and making it part of the Communications and Collaboration segment, to more accurately reflect Unified Communications. Use of the top business applications will continue to grow strongly, as shown with the following findings:

  • Instant Collaboration: Growing from 27% market penetration in 2013 to 45% in 2016
  • File Sharing: Growing from 28% in 2013 market penetration to 43% in 2016
  • Backup & Storage: Growing from 16% market penetration in 2013 to 28% in 2016

Download Your Parallels Cloud Insights™ Reports Today

For further information on these and other growth indicators in your markets, get your hands on the latest Parallels SMB Cloud Insights™ Reports today.

Latest News

Parallels Cloud University Launched at Parallels Summit

Parallels next-generation training and certification program, Parallels Cloud University, launched at Parallels Summit 2014. Parallels Cloud University is a completely redesigned, web-based and instructor-led training program for both technical and business staff of service providers–providing education on Parallels products with new levels of certification from beginner to advanced. Developed by professional educators, the new program also increases efficiency and ROI by quickly onboarding new service provider staff with industry training relevant to core cloud services. Check out the Parallels Cloud University website to learn more.

You’re Invited - WHD.global Special Interest

We would like to invite attendees of the WHD.global event on April 1-3, 2014, to attend the following Parallels special events. For more technical audiences, we will host Special Interest Groups (SIGs) for Parallels Plesk and Parallels Plesk Automation. Parallels SIGs give you the opportunity to share feedback and help set the future direction for our products. We will also share our current roadmap and upcoming features for the upcoming major product releases. For our business-focused audience, we will give an overview of our upcoming Parallels Plesk 12 release in the What’s New with Plesk 12 session.

Parallels Plesk SIG

Tuesday, April 1, 14:30-16:00
Wednesday, April 2, 14:00-15:30

The Plesk SIG will discuss the exciting additions we’ve made for the Plesk 12 release – coming in May 2014. Hear about Plesk 12 security, mail and performance improvements, as well as new features to manage WordPress hosting. We also want to hear your thoughts about our roadmap for 2015 and beyond and how we can keep improving Plesk to help you run your hosting business better.

Parallels Plesk Automation SIG

Wednesday, April 2, 10:00-11:30

Come to this event to learn about Parallels Plesk Automation, our multi-server hosting automation platform that scales with your needs and provides a range of high-quality, hosted services for your customers. The first portion of the Parallels Plesk Automation SIG will discuss our roadmap, including plans for Linux and Windows hosting improvements, VPS hosting with automated upsell pathways, and SaaS syndication and hosting. This SIG will also introduce our fully integrated billing platform, Parallels Plesk Automation Billing – coming to the European market in 2015. The second portion of the SIG will open up the floor to your suggestions and feedback, giving you a chance to shape our future development priorities.

What’s new in Parallels Plesk 12 - Creating Offers that are Ready-to-Order & Easy-to–Market

Tuesday, April 1, 10:00-11:00
Wednesday, April 2, 16:00-17:00
Thursday, April 3, 10:00-11:00

This deep dive session will discuss what’s new in Parallels Plesk 12 and best practices for packaging and promoting the four editions into solutions that are ready-to-order and easy-to-market. Hear about the most common use cases for the new Plesk 12 Editions and how you can leverage them to provide more value to your current customers while enabling you to target new audiences with solutions that differentiate you from the crowd. We’ll also dissect several marketing campaigns designed to take advantage of each Plesk 12 Edition, which you can simply follow step-by-step or use as a blueprint to create your own.

Don’t miss your opportunity to hear about the Plesk 12 release and to help shape the Parallels Plesk and Parallels Plesk Automation roadmaps. RSVP now to reserve your space at the SIGs.

We look forward to seeing you there.

Congratulations to the Recipients of our Fifth Annual Partner Awards

Parallels Partner Awards recognize outstanding yearly achievements by partners who make the best use of the assets Parallels provides, with special attention given to those partners who have innovated and differentiated in the rapidly-expanding small and medium business (SMB) cloud services market.

The recipients of the 2014 Parallels Partner Awards are:

Congratulations to this year's award recipients.

Partner Resources

Download the 2014 SMB Research

Parallels SMB Cloud Insights™ research for 2014 was just released at Parallels Summit and it is now available for download at Parallels PartnerNet. Download the new reports for the U.S., Mexico and Brazil, as well as a new global infographic. (Requires Parallels PartnerNet registration)

ISV and APS Search Update

The Parallels PartnerNet ISV and APS locator tool is gaining momentum! There are now a number of APS packages that you can search for by ISV, solution, and Parallels product integration. Check out this new search tool. (Requires Parallels PartnerNet registration)

Ready-Now Marketing Provides Expert Marketing Services at Great Discounts (up to 50% off)

Ready-Now Marketing is a new benefit of the Parallels Partner Program. It provides easy-to-use, cost-effective marketing resources to help web hosters plan and execute their marketing. Ready-Now Marketing launches with six services from leading agencies including eBridge Marketing Solutions, Semdrive and CakeMail offering special packages and pricing exclusively for Parallels Partners. Marketing services include sales conversion optimization, search engine optimization, PPC advertising, press release support, content creation and access to email marketing tools.

Product Updates

Parallels is Breaking Out of the “Control Panel Box” with Parallels Plesk 12
Learn more during our webinar on April 24

Generic hosting has shifted to specialized hosting, developers are using concentrated platforms, and your customers are putting their money on it. Non-traditional segments of the web hosting market are healthy and growing fast. The specialists are winning. Parallels Plesk 12 is not just an upgrade from all other Plesk versions, it is an all-up business revolution: a change in how you perceive your customers.

Plesk 12 is a collection of Web Server Management tools that optimize the user experience and address the primary ways your customers use infrastructure for web hosting. Plesk 12 has re-invented its offers to meet the challenges and opportunities in the new world of hosting today.

Plesk 12 will address four main audience segments with four editions which will allow for tailored choices that are based on your customers overall needs. Plesk Web Admin Edition offers simple company website and domain management; Plesk Web App Edition offers powerful server and custom application development; Plesk Web Pro Edition offers management of customers’ websites and domains; and Plesk Web Host Edition offers secure WordPress and domain management tools for multi-tenant, install-anything hosting.

Speaking of WordPress, did you know that WordPress powers as many as 20% of websites worldwide? This means that roughly one in five of your customers are running WordPress! This is why we have developed our new WordPress Toolkit within Plesk 12. We’ve included WordPress auto-detection, mass management, vulnerability scanning, and easy-to-use hardening tools. Stop flying blind – let the WordPress Toolkit be your weapon of choice to protect your network!

Plesk 12 is also more secure by default, too. We know that security is extremely important not only to Plesk users, but also to infrastructure providers deploying Plesk, so we built several new security features into the core. This includes new outbound anti-spam with granular reporting, Fail2Ban which reads system log files and scans for attack patterns, and the new ModSecurity integration that includes multiple rule set options which are configurable for your environment.

Learn more about the WordPress Toolkit, the new security core, and how solutions-based offers can help you reach new audiences and expand your channel. Join us on April 24 for our Plesk 12 informational webinar, Parallels Plesk 12 Reinvented: Reach New Audiences and Expand your Channel.

Register now.

New Generic Top Level Domains (gTLDs) are Now Supported by Parallels Automation, Parallels Business Automation Standard and Parallels Plesk Automation

Are you excited and getting ready for upcoming launch of the new generic Top Level Domains (gTLDs) this year?

At Parallels we are working hard to make sure you will be able to sell these domains using the latest versions of Parallels Automation, Parallels Business Automation Standard and Parallels Plesk Automation*.

The following new gTLDs can be sold today using OpenSRS and eNom plugins:


And the following gTLDs are coming later this month:


To start selling these domains, please contact your registrar, add these domains to your reseller account, and enable them according to Parallels Business Automation 5.5, Parallels Plesk Automation Billing 11.5, Parallels Business Automation Standard 4.5.1 Provider’s Guides.

* Requires Parallels Plesk Automation Billing (PPAB) module. Get FREE license for Parallels Plesk Automation Billing until the end of 2014.

Case Studies

Keenondots - ConnectWorks (video)

In the video case study, watch how ConnectWorks and KeenOnDots help a.t.groep put more Dutch individuals with disabilities back to work through coaching and job training by keeping IT costs flat as their organization increases in size through the use of cloud services.
View Now.

Fieber - KPN Wholesale (video)

In this video case study, watch how Fieber and KPN Wholesale help a Dutch medical devices manufacturer, Pendracare, focus on product quality and security through unified communications and backup/storage.
View Now.

iiNet - Carlisle Events (video)

In this case study video, watch how Carlisle is able to change internal and customer requirements much faster with Hosted Exchange provided by iiNet. As a result, they have expanded internationally into Malaysia.
View Now.

Adnexus - Conetix (video)

Adnexus worked with Conetix to enable its applications for the cloud by migrating them to a virtualization platform powered by Parallels Cloud Server. This has allowed its field staff to access its business applications from anywhere, anytime, via a web-enabled device.
View Now.

ME Corp deploys Parallels Cloud Server to Support Rapidly-Growing Mobile Gaming Business

As a fast-growing mobile gaming company in Vietnam, ME Corp needed a stable, high-performance IT infrastructure to deliver a rich gaming experience to millions of users, while ensuring that there would be no service downtime. ME Corp decided to deploy Parallels Cloud Server to build a cost-effective, virtualized IT infrastructure that would address its needs for stability, performance and high-availability.
Read More.

Hen’s Teeth Network Improves Plans, Reduces Prices, & Increases its Profit Margins with Parallels Cloud Server and Parallels Cloud Storage

Hen’s Teeth Network created a cluster powered by Parallels Cloud Server and Parallels Cloud Storage. This new infrastructure offered more specific configuration and resource allocation and instantaneous resizing with no downtime, at a more competitive price point.
Read More.

Digistar Addresses Rigorous Performance and Stability Requirements with Parallels Cloud Server

Digistar aims to become one of the leading web hosting companies in Vietnam. However, its plans were being hampered by performance and stability issues it was facing with its previous IT infrastructure. Digistar decided to deploy Parallels Cloud Server to build a robust IT infrastructure that addresses its needs for stability, performance and high availability, while enabling it to scale cost-effectively to support business growth.
Read More.

Upcoming Training

Attend Free Parallels Business Automation Standard Administration Training and Become a Parallels Certified Automation Professional

Parallels Business Automation Standard 4.2 and 4.3 will reach end of life in just a few months. Now is the perfect time to plan your update to Parallels Business Automation Standard 4.5.1 and get all your staff trained and certified for free (a $500/€380 value per attendee).

Parallels Business Automation Standard training will take place over two days and is scheduled for:

Tuesday & Wednesday, March 25-26, 8 AM - 12 PM (EDT)

In this eight-hour training (4 hours/day), you’ll learn about the main features of Parallels Business Automation Standard (PBAS), with step-by-step instructions and extended lab exercises. You will learn how to deploy and integrate Parallels Business Automation Standard with Parallels Cloud Server, Parallels Plesk Automation and many other cool features. You’ll also learn how to administer a multi-server, multi-platform environment using Parallels Business Automation Standard 4.5.1 and will practice administering hosting service provider sites.

After completion of this course and passing the Certification exam, you will become a Parallels Certified Automation Professional for Parallels Business Automation Standard.

Register Now.

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