India SMB cloud market to grow by 45% annually

According to a Parallels report, 90% of SMBs do not currently use servers of any kind; 94% do not have company website

Parallels, a hosting and cloud services enablement provider, has released the key findings of Parallels SMB Cloud Insights for India, a detailed report illustrating how service providers can profit by delivering cloud services to small and medium businesses (SMBs).

Parallels estimates that the Indian SMB cloud services opportunity in 2012 is worth Rs 11.9 billion (US$220 million), and expects it to grow 45 percent annually (CAGR), reaching 36.9 billion (US$664 million) in 2015.

Parallels research determined that this growth is being driven by the growing penetration of the Internet in India, and the online needs of businesses to establish their web presence, acquire hosted infrastructure capabilities and other services.

The countrys fast developing network infrastructure, increase in Internet penetration, and a growing awareness of the benefits of cloud services has resulted in an increasing demand for cloud services among SMBs in India, said David Dzienciol, Regional Vice President and General Manager, Parallels in Asia Pacific. Our research is valuable intelligence for service providers, who can become more familiar with the needs of SMBs in India, and then target the appropriate opportunity segments with the right mix of services to meet this rapidly-growing demand.

Parallels SMB Cloud Insights for India details the fastest growing opportunities to deliver cloud services to SMBs across four key sectors: Hosted Infrastructure (IaaS), Software-As-A-Service (SaaS), Web Presence and Hosted Communication and Collaboration. Parallels research then drills down to provide the specific applications and services in these categories.

For example, while 90 percent of Indian SMBs are not currently using servers of any kind, 78 percent of these say they plan to add hosted servers in the next three years. Ninety-four percent of Indian SMBs do not currently have a company website, and are seeking how to build their web presence. In the hosted communication and collaboration space, only eleven percent of Indian SMBs currently report having e-mail, with the majority of these being free services.

Parallels estimates these larger SMBs could drive the addition of 8.2 million new hosted premium mailboxes to the market in the near term. Indian SMBs are also willing to pay more for web conferencing, content management, and file sharing, with 30-50 percent of SMBs planning to increase their spending on these applications.

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