Welcome!

Cloud Expo Authors: ITinvolve Blog, Andreas Grabner, AppDynamics Blog, Liz McMillan, Tim Hinds

Related Topics: Cloud Expo

Cloud Expo: Article

SMBs Are Looking to Cloud Service Providers for Bundled Cloud Services

Parallels Publishes New Industry Reports to SMB Cloud Insights Series

“We are pleased with the responses we are receiving from our service provider partners and will continue making a substantial investment in our expertise and knowledge initiatives,” said Birger Steen, CEO of Parallels, on the occasion of the publication of the latest report in the Parallels SMB Cloud Insights series.

Now entering its third year of annual publication, the research results continue to confirm that SMBs remain the fastest growing segment for cloud services and the optimal target market for service providers of all sizes, with the global market for SMB cloud services expanding at a 28 percent CAGR to $95 billion by 2015.

“Parallels SMB Cloud Insights research is core to our commitment to help service providers make both strategic and tactical decisions about the rapidly growing market for SMB cloud services,” Steen said.

In addition to offering the complimentary research reports, this year Parallels is furthering its investment in industry knowledge by enhancing its interpretations and conclusions of the data by leveraging a Kano analysis and conjoint analysis to provide guidance for optimizing cloud bundles and pricing strategies. Preliminary results from these deeper analytic efforts are being previewed at Parallels Summit 2013, and in-depth reports will be released later this year.

Some of this year’s Parallels SMB Cloud Insights research findings include:

  • Storage is a strong upsell opportunity for Infrastructure-as-a-Service providers, and 50 percent of SMBs are willing to pay more for increased storage.
  • 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, and 30 percent report they plan to adopt website building tools by 2015.

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. Findings are being shared first with the attendees of Parallels Summit 2013 in Las Vegas, an annual event that attracts a global audience comprised of hosting partners, independent software vendors, systems integrators, industry analysts and press from across the world.

Additional Parallels SMB Cloud Insights research findings include:

  • Globally, the 2012 cloud services market has grown to $45 billion USD as at least 6 million SMBs entered the cloud market for the first time last year. The global market will continue to grow at 28 percent CAGR through 2015 to a forecasted $95 billion USD.
  • In the United States, the SMB cloud market is now $18.9 billion USD and is forecast to grow at a 19 percent CAGR through 2015. This growth is driven by 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.
  • In Brazil, Parallels predicts the SMB market will grow by 33 percent year-over-year for the next three years, reaching $2.6 billion USD by the end of 2015.
  • In Mexico, the SMB cloud services market grew 30 percent last year and will continue to grow at 45 percent over the next three years, making it one of the world’s fastest growing SMB markets.

Parallels SMB Cloud Insights reports outline the cloud services that have the most current and future appeal for SMBs across four key categories: Infrastructure-as-a-Service (IaaS), Web Presence and Web Applications, Hosted Communication and Collaboration, and Business Applications (also known as Software-as-a-Service). The new Global, U.S., Brazil and Mexico reports mark the third year of ongoing research in the Parallels SMB Cloud Insights series, which now includes unique reports for 14 countries, including the United Kingdom, France, Spain, Germany, the Netherlands, Poland, China, India, Japan, Australia and Russia. Regional roll-ups are also available for Europe and Asia Pacific.

More Stories By Liz McMillan

News Desk compiles and publishes breaking news stories, press releases and latest news articles as they happen.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
Cloud Technology Partners on Wednesday announced it has been recognized by the Modern Infrastructure Impact Awards as one of the Best Amazon Web Services (AWS) Consulting Partners. Selected by the editors of TechTarget's SearchDataCenter.com, and by votes from customers and strategic channel partners, the companies acknowledged by the Modern Infrastructure Impact Awards represent the top providers of cloud consulting services for AWS including application migration, application development, inf...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your onlin...
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
"We are the top stocking distributor for HP renew products in North America. We can only sell to U.S. authorized partners and resellers for HP," explained Miguel Diazdelcastillo Jr., Sales Executive at Creative Business Solutions, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Puppet Labs on Wednesday released the DevOps Salary Report, based on salary data gathered from Puppet Labs' industry-recognized State of DevOps Report. The data confirms that market demand for DevOps skills is growing, and that DevOps engineers are among the highest paid IT practitioners today. That's because IT organizations today are grappling with how to be more agile and responsive to the business, while maintaining the stability of their infrastructure. DevOps practices, such as continuous ...
Software Defined Storage provides many benefits for customers including agility, flexibility, faster adoption of new technology and cost effectiveness. However, for IT organizations it can be challenging and complex to build your Enterprise Grade Storage from software. In his session at Cloud Expo, Paul Turner, CMO at Cloudian, looked at the new Original Design Manufacturer (ODM) market and how it is changing the storage world. Now Software Defined Storage companies can build Enterprise grade ...
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore's Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at Big Data Expo, Mason Katz, CTO and co-founder of StackIQ, disc...
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use c...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
In this scenarios approach Joe Thykattil, Technology Architect & Sales at TimeWarner / Navisite, presented examples that will allow business-savvy professionals to make informed decisions based on a sound business model. This model covered the technology options in detail as well as a financial analysis. The TCO (Total Cost of Ownership) and ROI (Return on Investment) demonstrated how to start, develop and formulate a business case that will allow both small and large scale projects to achieve...
IBM has announced a new strategic technology services agreement with Anthem, Inc., a health benefits company in the U.S. IBM has been selected to provide operational services for Anthem's mainframe and data center server and storage infrastructure for the next five years. Among the benefits of the relationship, Anthem has the ability to leverage IBM Cloud solutions that will help increase the ease, availability and speed of adding infrastructure to support new business requirements.
"ElasticBox is an enterprise company that makes it very easy for developers and IT ops to collaborate to develop, build and deploy applications on any cloud - private, public or hybrid," stated Monish Sharma, VP of Customer Success at ElasticBox, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.