New Parallels SMB Cloud Insights Reports Show Continued Adoption of Cloud Services by SMBs as Global Market Tops $125 Billion by 2016

Findings show that SMBs are using an average of 5 cloud services now and will grow to over 9 services by 2016, with sophisticated IT needs like Communications and Collaboration driving growth.

Parallels Summit 2014

RENTON, WA & NEW ORLEANS--()--Parallels, the hosting and cloud services enablement leader, today released the latest updates to Parallels SMB Cloud Insights™, its primary and proprietary research that details the use of cloud services by small and medium businesses (SMBs). Now entering its fourth year of annual publication, the research results continue to show the massive SMB cloud opportunity for service providers of all sizes, with the global market expanding at a 26 percent CAGR to $125 billion by 2016.

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

  • Communication and Collaboration, which includes business class email and hosted PBX services, is significantly outpacing the overall market, growing at 37% CAGR from $4.8 billion in 2012 to $6.5 billion in 2013 and expected to reach $20 billion by 2016.
  • Infrastructure-as-a-Service is the second fastest growing market, topping $42 billion by the end of 2016 with a 27% CAGR.
  • In mature markets, SMBs use an average of five cloud services now, expected to grow to nine services by 2016.

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 2014 in New Orleans, an annual event that attracts a global audience comprised of hosting partners, communication service providers, independent software vendors, systems integrators, industry analysts and press from across the world.

“Parallels SMB Cloud Insights research continues to play a central role in providing actionable market intelligence to our partner ecosystem,” said Birger Steen, chief executive officer, Parallels. “SMBs are becoming more sophisticated in their use of IT and also demanding best of breed solutions. Parallels software is proven to enable service providers to make the cloud work for businesses.”

Additional Parallels SMB Cloud Insights™ research findings include:

  • Globally, the 2013 cloud services market has grown to $62 billion USD. The global market will continue to grow at 26 percent CAGR through 2016 to $125 billion USD.
  • In the United States, the SMB cloud market is now $24 billion USD and is forecast to grow at a 17 percent 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 percent CAGR through 2017, reaching $4.0 billion USD in 2017.
  • In Mexico, the SMB cloud services market is growing at 36% CAGR from just over $650 million USD in 2014 to over $1.5 billion USD, continuing to make 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). Of note, for the latest 2014 country-level research, Parallels has updated these categories. Changes include adding cloud server use to our measure of the infrastructure market, and augmenting the previous “Communication and Collaboration” category with popular collaboration applications and now terming it “Unified Communications.”

The new Global, U.S., Brazil and Mexico reports mark the fourth year of ongoing research in the Parallels SMB Cloud Insights™ research 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. All SMB Cloud Insights™ reports are available for download at and within the Parallels Service Provider PartnerNet Portal. The four new reports will be available at Parallels Summit on February 25, 2014, and online immediately thereafter.

In cases where service providers would like Parallels to take its research and insights deeper into their specific markets and organizations, Parallels Cloud Acceleration Services provides a suite of professional services designed to define, build, launch and grow a service provider’s cloud business. Parallels Cloud Acceleration Services include customer market research, product management and cloud-centric go-to-market consulting, giving service providers essential analysis to help succeed in the market.

About Parallels

Parallels® is a global leader in hosting and cloud services enablement and cross-platform solutions. Parallels began operations in 2000 and has developed into a fast-growing software company with more than 900 employees across offices in North America, Europe, Australia and Asia.

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Nikolett Bacso, 425-282-5982


Nikolett Bacso, 425-282-5982