New Research from Parallels Sizes the Australian Small and Medium Business Market for Cloud Serves at A$480 Million, with Ample Growth Opportunities for Service Providers

November 30, 2011

Replacement of in-house servers expected to grow at 40 percent alone as small businesses continue the rapid migration to hosted servers and applications

SYDNEY, AUSTRALIA - November 30, 2011 - Parallels, the hosting and Cloud services enablement leader, today released the key findings of Parallels SMB Cloud Insights™ for Australia, a report illustrating how service providers can profit by delivering Cloud services to small and medium businesses (SMBs). Parallels SMB Cloud Insights™ for Australia addresses the specific Cloud services and applications with the most appeal to SMBs, including hosted infrastructure, Web and social media presence services, hosted communication and collaboration, and other online applications.

Parallels estimates that the market opportunity to serve Australian SMBs with Cloud services is A$480 million in 2011 and growing rapidly, with hosted infrastructure and Web presence segments driving the majority of Australian growth. Parallels has determined that hosted infrastructure currently accounts for A$230 million, followed by web presence (A$190 million); and hosted communication and collaboration (A$60 million).

"Cloud services are rapidly changing the way businesses operate globally, and even a mature hosting market such as Australia is no exception,” said John Zanni, vice president of service provider marketing and alliances of Parallels. “Plenty of opportunities lie ahead for service providers to deliver customized Cloud services to Australian SMBs, and we’re confident Parallels SMB Cloud Insights™ for Australia will serve as a great road map for them to best capitalize and profit from this burgeoning market.”

The report states that while the Australian Cloud services market is well established, its SMB adoption of Cloud services lags behind the rest of the developed world in nearly every service category due, primarily due to a lack of market education on the business and technical benefits of Cloud services. Consequently, Parallels concludes that as Cloud services and applications continue to become even more economical, coupled with better to SMBs, the pace of adoption of Cloud services will accelerate even more rapidly in Australia.

“We are already seeing Australian SMBs understand and leverage the benefits of cloud services via our Parallels platform,” said Michael McGoogan, CEO of UberGlobal. “The SMB Cloud Insights™ research further highlights that there is a great opportunity for our reseller partners. These resellers can now really take advantage of the Cloud, profit from it and at the same time, differentiate themselves by adding their own unique value and service to their customers.”

Additional key research findings in Parallels SMB Cloud Insights™ for Australia include:
  • Hosted Infrastructure
    • 12 percent of Australian SMBs report using hosted servers, as compared to an average of 20 percent of SMBs in other developed countries (including the US and most of the European Union). Of those, 19 percent of these companies currently use in-house servers and 30 percent of these SMBs either already plan to switch to hosted servers in the next three years.
    • Price is the major factor delaying the adoption of hosted infrastructure in Australia, which provides an ideal opportunity for virtual private server (VPS) offerings.
  • Web Presence
    • Website penetration among Australian SMBs is at 54 percent, a figure that falls behind that of other developed markets, where average penetration is over 65 percent.
    • Of those SMBs without websites, 35 percent of micro SMBs and 71 percent of small SMBs plan to add a website from a service provider in the next three years.
  • Hosted Communication and Collaboration
    • Only 5 percent of Australian SMBs pay for premium e-mail, which includes security, archiving, and mobility. 29 percent of these small businesses are planning to switch from in-house e-mail servers to paid, hosted e-mail in the next three years.
    • Fewer than 2 percent of Australian SMBs report use of hosted PBX. In order to spur the growth in this area, service providers would need to keep price low, educate SMBs on the benefits of hosted PBX and create a strong, recognizable brand.
  • Other Online Applications (SaaS)
    • Approximately 49 percent of Australian SMBs are currently using some form of other online applications, including both free and paid subscribers.
    • The types of applications they are most willing to pay for are Web conferencing, e-mail archiving, and payroll/HR applications.

To download Parallels SMB Cloud Insights™ Reports click here.

About Parallels
Parallels is a worldwide leader in hosting and Cloud service enablement and desktop virtualization. Founded in 1999, Parallels is a fast-growing company with more than 800 employees in North America, Europe, and Asia. For more information, please visit www.parallels.com, follow us on Twitter at www.twitter.com/ParallelsCloud and Like Us on Facebook at www.facebook.com/ParallelsCloud.

 
 
 
 
 
 
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