SMB IT Cloud Market Worth $8.6 Billion
The total market for cloud-based IT at small and midsize businesses (SMBs) in the U.S. was worth $8.6 billion at the end of 2010, according to new data from Parallels.
The company’s study found an additional $13 billion in potential growth for the SMB cloud, putting the future market value at more than $21 billion. Parallels, a back-end vendor to other Web-based service providers, defined “cloud” as any IT function hosted off-site, with a focus on three segments: Hosted infrastructure, Web hosting, and hosted messaging and collaboration services such as email and PBX. The survey included 500 U.S. firms with between 1 and 1,000 employees. Parallels released the full results of its report on Wednesday at its Summit conference.
Hosted infrastructure accounts for more than half — or $4.9 billion — of the current SMB market value, while Web hosting is a $2.3 billion segment. Messaging and collaboration for smaller companies is worth $1.4 billion, according to the study.
Interestingly, Parallels did not use the term “cloud” in its survey questions in order to avoid confusion among respondents about what the word means, according to Jack Zubarev, president of marketing and alliances at Parallels.