Service providers should deliver Cloud services to SMBs: Parallels

Service providers can profit by delivering Cloud services to SMBs, according to hosting and Cloud services provider, Parallels.

The latest findings of its Parallels SMB Cloud Insights for Australia report showed that the market opportunity for Cloud services will grow to $865 million in 2012, especially across hosted infrastructure ($295 million), Web presence services ($217 million), hosted communication and collaboration ($89 million), as well as business applications ($264 million).

Parallels vice-president of service provider marketing and alliances, John Zanni, said that on a global level, Cloud services will continue to rapidly change the way businesses consume technology and open new opportunities for businesses.

“Service providers would do well to use the Parallels SMB Cloud Insights for Australia to reap the benefits of a burgeoning market. We see huge opportunities for service providers that are able to reach SMBs with the right services at the right price,” he said.

Within the hosted infrastructure space, the report showed that:

• Price is still the most important criterion for SMBs purchasing hosted infrastructure, up from being ranked third in 2011. Price is also the second leading reason to keep servers in-house.
• 15 per cent of Australian SMBs surveyed reported that they use hosted servers. However, it is still below the global average of 20 per cent of SMBs in other developed countries.
• 33 per cent of SMBs that currently don’t have security for their hosted infrastructure and 20 per cent of those that don’t have server backup plan to add it to their infrastructures.

Within the Web presence space, Parallels found:

• In 2012, 59 per cent of Australian SMBs have a website, and 59 per cent of them were using a service provider to host it.
• The Australian SMB Web presence market will grow 16 per cent YoY, reaching $338 million in 2015.
• Australian SMBs rank technical characteristics, an informative website, and price as the top three purchase criteria for selecting Web hosting providers.
• The best opportunity for profitability will arise from offering Web application add-ons, such as security and social media.

In the hosted communication and collaboration space, the survey showed:

• Only five per cent of Australian SMBs pay for premium e-mail despite the growth of 28 per cent from the previous year.
• Only three per cent of Australian SMBs purchase hosted PBX.

Within the SaaS space, it showed:

• Australian SMBs have grown their use of online applications by 22 per cent from 2011, with 60 per cent now using more free or paid online applications.
• Businesses that successfully sell SaaS applications to Australian SMBs are offering the right applications bundled with other Cloud services.

Register now for the ARN Security Forum 2013 on June 4 at the Sydney Mint

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