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APAC SMB cloud services market sees growth: Parallels

Nurdianah Md Nur | Oct. 8, 2013
The market is expected to reach US$23.3 billion by 2016, from the current US$10.9 billion.

The cloud services market for Asia Pacific small and medium businesses (SMBs) is projected to reach US$10.9 billion in 2013, according to the recent Parallels SMB Cloud Insights. The figure is a 43 percent increase from US$7.6 billion in 2012.

Japan and Australia are currently leading the SMB cloud adoption in the region due to the availability of infrastructure there, said John Zanni, vice president, service provider marketing and alliances at Parallels. However, he expects to see more SMBs in China and India adopting cloud services in future as their internet infrastructure improves.

The Parallels SMB Cloud Insights identified the following cloud services and applications categories that were the most appealing to Asia Pacific SMBs in 2013:

Infrastructure-as-a-Service (IaaS): The IaaS market in Asia Pacific has grown to reach US$3.7 billion in the past year. The increased adoption of hosted servers and infrastructure add-ons were the main contributors to this growth. Based on the study, 70 percent of the SMBs in Asia Pacific with hosted servers are intending to buy one or more of the infrastructure add-ons. These add-ons include security applications, SQL databases, server backup, and webserver control panels with their hosted servers. Infrastructure add-ons will continue driving the growth of the IaaS market, which is expected to reach US$7.6 billion by 2016.

Web presence and web applications:  The market size for web presence and web applications in Asia Pacific is currently estimated to be US$2.3 billion. It is projected to rise over the next three years to reach US$3.8 billion. This growth will most likely be driven by the increasing number of SMBs developing websites to establish a web presence. Currently in Asia Pacific, only 60 percent of SMBs in developed[1] countries and 25 percent of SMBs in developing[2] countries have websites.

After developing websites, SMBs will turn to value-added web tools and services to secure their websites and strengthen their web presence. The study projected that through 2016, popular add-ons in the region will include search engine optimisation, content management systems, e-commerce capabilities, mobile optimisation, and security add-ons.

Hosted communication and collaboration: Even though this market is still small, it is projected to rapidly grow in the next three years - it is expected to hit US$3.6 billion by 2016 from the current US$978 million.  The increase uptake of hosted email services and hosted PBX will drive this growth. Currently in the region, only 33 percent of SMBs in developed countries and 15 percent in developing countries have adopted hosted emails. As for hosted PBX, the penetration rate now stands at 6 percent.

Business applications: The business applications market will be the fastest growing market as it is expected to reach US$10 billion by 2016 from the current US$3.8 billion. For SMBs in developed countries in Asia Pacific, file sharing, backup and storage, and instant collaboration are the top business applications that they are currently using and/or planning to adopt in the next few years. As for SMBs in the developing countries, they are currently using and/or planning to adopt web conferencing, instant collaboration, support/help desk, and backup and storage apps.


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