Odin. SMB Cloud InsightsTM GLOBAL

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1 Odin 2015 SMB Cloud InsightsTM GLOBAL

2 DEFINITIONS SMBs Defined We define SMBs also known as small and medium enterprises (SMEs) as companies with one to 250 employees. SMB categories include micro (1-9 employees), small (10-49 employees), and medium ( employees). Cloud Opportunities Cloud leapers: SMBs that are not currently using an in-house IT solution (no servers, web servers, or PBX systems) and are likely to move straight to the cloud, i.e., leaping over in-house IT solutions. Cloud converters: SMBs with in-house solutions but moving or planning to move to hosted services. For example, an SMB with in-house servers who is planning to switch to hosted servers when they next upgrade their infrastructure. Cloud Services Defined This research focuses on the cloud services that matter most to SMBs: IaaS, web presence and web applications, unified communications, and other general business applications. Infrastructure-as-a-service (IaaS): Cloud servers, dedicated servers, virtual private servers (VPS), fully managed hosting, as well as add-on applications and services for hosted infrastructure such as control panels, development platforms, LAMP stack, security, and server backup. Web presence and web applications: Third-party web hosting, domain registration, and web applications including web server backup, content delivery networks (CDN), content management systems (CMS), e-commerce, site health monitoring, mobile optimization tools, search engine optimization (SEO), site-building tools, SSL, web server backup, and web server security. Unified communications: Business-class services including security, and archiving, along with mobility and hosted business voice services such as hosted PBX. Includes communication and collaboration applications such as web and phone conferencing, instant collaboration, and mobile device management (MDM). Business applications (also known as software-as-a-service or SaaS): The major types of software applications that can be accessed online such as file sharing, online accounting, online backup and storage, online customer relationship management (CRM), payroll and human resources (HR), support and help desk, and virtual desktop (VDI).

3 Odin SMB Cloud Insights Global Report 2015 Internet Penetration Rates <25% Developing Early 25-40% Developing Advancing 40-75% Maturing >75% Mature Global Market Size in 2015 $98.7B Total $37.8B $17.3B $19.4B $24.2B Infrastructure-asa-service Web presence Unified communications Business applications 1

4 Global Market Size in 2015 $36.8B $7.1B North America Latin America and Caribbean 2

5 $26.2B $3.1B $23B $2.3B Europe and Central Asia Middle East and North Africa Sub-Saharan Africa East Asia, South Asia, and Pacific 3

6 INFRASTRUCTURE-as-a-SERVICE Average Annual Spending per SMB East Asia, South Asia, and Pacific $4,057 Europe and Central Asia $5,936 Latin America and Caribbean $5,288 Middle East and North Africa $5,830 North America $9,582 Sub-Saharan Africa $2,327 4

7 Market Size and Forecast 17.5% 16.7% 21.5% $7.8B $12.6B East Asia, South Asia, and Pacific $10.8B $17.1B Europe and Central Asia $3.1B $5.6B Latin America and Caribbean 8% 13.4% 25.3% $0.9B $1.2B Middle East and North Africa $14.8B $18.6B North America $0.5B $1.0B Sub-Saharan Africa 5

8 WEB PRESENCE Average Annual Spending per SMB East Asia, South Asia, and Pacific $1,544 Europe and Central Asia $2,592 Latin America and Caribbean $2,110 Middle East and North Africa $2,264 North America $3,154 Sub-Saharan Africa $964 6

9 Market Size and Forecast 17.8% 12.2% 20.1% $4.8B $7.8B East Asia, South Asia, and Pacific $4.6B $6.5B Europe and Central Asia $1.2B $2B Latin America and Caribbean 7.8% 16.4% 26.8% $0.9B 2015 $1.4B 2018 Middle East and North Africa $5.2B $6.5B North America $0.7B $1.4B Sub-Saharan Africa 7

10 UNIFIED COMMUNICATIONS Average Annual Spending per SMB East Asia, South Asia, and Pacific $2,394 Europe and Central Asia $2,797 Latin America and Caribbean $2,777 Middle East and North Africa $3,098 North America $5,119 Sub-Saharan Africa $1,573 8

11 Market Size and Forecast 19.4% 19.7% 24.8% $4.6B $7.9B East Asia, South Asia, and Pacific $4.1B $7B Europe and Central Asia $1.2B $2.4B Latin America and Caribbean 4.4% 15.5% 31.8% $0.9B 2015 $1.4B 2018 Middle East and North Africa $8.1B $9.2B North America $0.4B $1B Sub-Saharan Africa 9

12 BUSINESS APPLICATIONS Average Annual Spending per SMB East Asia, South Asia, and Pacific $2,693 Europe and Central Asia $3,548 Latin America and Caribbean $3,316 Middle East and North Africa $3,439 North America $4,872 Sub-Saharan Africa $2,034 10

13 Market Size and Forecast 28.7% 21.9% 28.5% $5.8B $12.4B East Asia, South Asia, and Pacific $6.8B $12.3B Europe and Central Asia $1.6B $3.4B Latin America and Caribbean 25.9% 28% 31.3% $0.5B $1.1B Middle East and North Africa $8.8B $17.5B North America $0.7B $1.6B Sub-Saharan Africa 11

14 Global Market Forecast through % 14% $37.8B 2015 $56.2B 2018 $17.3B 2015 $25.6B 2018 IaaS Web presence 25.9% 14.2% $19.4B 2015 $28.9B 2018 $24.2B 2015 $48.3B Unified communications Business applications

15 Overall Market Opportunity 17.2% $98.7B 2015 $158.9B

16 Global Market Values through 2018 $51.8B 12.1% $13.4B 23.5% North America Latin America and Caribbean 14

17 $42.9B 17.8% $5.1B 17.4% $40.7B 21% $5B 28.8% Europe and Central Asia Middle East and North Africa Sub-Saharan Africa East Asia, South Asia, and Pacific 15

18 16

19 Learn More This report covers only a portion of the extensive data included in Odin SMB Cloud Insights research. Please contact SMB@odin.com with any further questions. Odin is committed to helping our partners understand the best opportunities in the SMB cloud market. About Odin Odin provides the software that powers the cloud ecosystem, from small and local hosters to some of the world s largest telecommunication companies. By partnering with Odin, service providers gain access to industry expertise, a catalog of the most in-demand cloud applications, and the most comprehensive selection of software including web server management, server virtualization, provisioning, and billing automation. With offices in 15 countries, Odin supports more than 10,000 service providers in delivering applications and cloud services to more than 10 million SMBs. For more information, visit follow us on Twitter, or like us on Facebook Parallels IP Holdings GmbH. All rights reserved. Odin and the Odin logo are trademarks of Parallels IP Holdings GmbH. No part of this publication may be reproduced, photocopied, stored on a retrieval system, or transmitted without the express written consent of Parallels. 17

20 Odin GLOBAL HEADQUARTERS 500 SW 39th Street Suite 200 Renton, WA USA main: EMEA Willy-Brandt-Platz Munich Germany main: HostingSales.eu@odin.com APAC 3 Anson Road, #36-01 Springleaf Tower Singapore main: HostingSales.apac@odin.com For more office locations: odin.com/contact

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