Parallels SMB Cloud Insights TM for Mexico

Transcription

1 Profit from the cloud TM 2013 Parallels SMB Cloud Insights TM for Mexico Mexico m

2 Table of Contents Executive Summary...1 Definitions...2 Key Findings in the Cloud...4 Infrastructure as a Service (IaaS)...5 Web Presence and Web Applications...7 Hosted Communication and Collaboration Hosted Premium Hosted PBX Business Applications Conclusion... 16

3 Executive Summary The Mexican cloud services market for small and medium businesses (SMBs) is growing quickly, and it is changing the way that SMBs consume IT. Last year, Parallels research indicated that the Mexican SMB market for cloud services was among the fastest-growing markets in the Americas. Our 2013 research indicates this trend will continue, as Mexico s Internet infrastructure improves and SMBs rapidly expand their use of cloud services. Having initially interviewed 400 Mexican SMBs of different sizes and industries in the end of 2011 about their cloud service consumption, plans, and attitudes, Parallels has refreshed this research for 2013, conducting 400 new interviews to determine what changes have taken place in the intervening months. Our research addressed SMBs cloud service use with respect to four specific categories: infrastructure as a service (IaaS), web presence and web applications, hosted communication and collaboration, and online business applications (a category also known as software-as-a-service, or SaaS). By combining the results of these interviews with our in-depth industry expertise, we have created a comprehensive view of the Mexican SMB market for cloud services in 2013, including an understanding of how the space has grown and evolved over the past year. This paper summarizes our findings, with a focus on the Mexican SMB cloud market growth and future opportunity for 2013 and beyond. As of early 2013, Parallels calculated the Mexican SMB market across all categories of cloud services to be $5.2B MXN ($415M USD). As shown in Figure 1, IaaS contributes $1.6B MXN ($125M USD) to this market, web presence and web applications contribute $1.3B MXN ($107M USD), hosted communication and collaboration (consisting of hosted premium and hosted PBX) adds $624M MXN ($50M USD), and business applications account for the remaining $1.7B MXN ($133M USD). The Mexican SMB market across all categories of cloud services has reached $5.2B MXN ($415M USD) Parallels predicts the Mexican SMB market will grow by 45% year-over-year for the next three years, reaching $15.9B MXN ($1.3B USD) at the beginning of This growth will be driven both by new adopters of cloud services and by current users adding more applications and functionality to their existing cloud services. The growth rate remains among the strongest in the Americas and among all developing cloud markets worldwide. Therefore, service providers who are able to reach these SMBs with the right mix of cloud services will have ample opportunity to expand in the Mexican SMB market. 1

4 Figure 1. SMB cloud services market size and growth in Mexico ( ) $5.2B MXN ($415M USD) $2B MXN ($210M USD) 31% 34% Jan - 12 Jan - 13 Infrastructure as a service (IaaS) Web Presence and Web Applications Hosted Communication & Collaboration Business Applications* *Business Applications market was not sized in 2012 research Definitions Cloud service categories This research is focused on the cloud services that matter most to SMBs: infrastructure as a service, web presence and web applications, hosted communication and collaboration, and a general category we refer to as business applications. We define each of these cloud service categories as follows: Infrastructure as a service (IaaS; formerly called hosted infrastructure in Parallels SMB Cloud Insights ). This category includes dedicated servers, virtual private servers (VPS), managed hosting, and utility or elastic computing. In 2013, we expanded this category to include add-on applications and services for hosted infrastructure, such as control panels, development platforms, LAMP stack (Linux, Apache, MySQL, PHP), security, server backup, and SQL databases. Web presence and web applications. This category includes third-party web hosting, blogging services, domain registration, SSL and ecommerce add-ons, and site-building tools. In the 2013 research, this category expanded to include additional high-opportunity web applications web server backup, content delivery networks (CDN), content management, mobile optimization tools, search engine optimization (SEO), and web server security and health monitoring. Hosted communication and collaboration. This category consists of business-class services, including security, archiving, and mobility; and hosted phone services, including hosted PBX. Business applications. This category includes ten major types of software applications that can be accessed online file sharing, instant collaboration, online accounting, online backup 2

5 and storage, online CRM, payroll and HR, phone conferencing, enterprise resource planning (ERP), support and help desk, and web conferencing. For each of these cloud service areas, Parallels captured SMBs current use, attitudes, future plans, and market size. This report primarily covers the current market size and future outlook for the SMB cloud in Mexico, however a wealth of other data is also available for custom data requests. SMB Definition and Segmentation As for our definition of SMBs also known as small and medium enterprises, or SMEs we follow other research and academic organizations in defining them as companies with 1 to 250 employees. There are around 1.9M such SMBs in Mexico today. Sub-categories within the SMB segment include: Micro SMBs (companies with 1-9 employees) Small SMBs (companies with employees) Medium SMBs (companies with employees) Our research does not include businesses in Mexico that have no employees (sole proprietor only), but this group of small businesses should still be considered a good market for cloud services as it has many of the same characteristics and IT needs of a micro SMB. Parallels further segments SMBs by their IT decision maker and the type of cloud opportunity represented by each business (in terms of their current or future adoption of various cloud services). IT Decision Makers SMBs with no IT staff ( do-it-yourselfers ). For these SMBs, the business owner or a senior member of the company handles all IT purchasing decisions, as well as installation and maintenance of IT solutions. These decision makers need to know how a cloud service will benefit their business and their bottom line. They also need solutions whose user interface is simple enough to not require detailed IT expertise. To market successfully to this group, focus on the business benefits of cloud services, while minimizing technical complexity. To better understand SMB behavior, SMBs can be segmented by size, IT decision maker and opportunity type. SMBs that hire IT consultants. IT consultants want to know about the technical specifications of the cloud service, its configuration and management, best practices, and other technical advice. Having a white-label reseller offering designed for IT consultants one that gives them the opportunity to resell cloud services to the SMB end customer without having to manage the infrastructure themselves will help reach this target audience, as will sales and marketing strategies that target the broader IT channel, including distributors. SMBs with a dedicated IT staff. For these SMBs, IT personnel are the primary audience. While they need to know the business 3

6 benefits so they can pass them on to senior management, they themselves are much more concerned with the technical aspects of the solution and whether or not it fits the needs of their company. Clear, detailed documentation about technical specifications, strong support, and cutting-edge technical features will be the key selling points for this audience. Cloud Opportunity Type Cloud leapers. This category consists of SMBs that currently are not using an in-house IT solution (that is, they have no servers, no web server, or no PBX system) and are likely to move straight to the cloud, leaping over the typical intermediate step of purchasing in-house IT. These companies might have rudimentary IT equipment, such as external hard drives for storage or Excel workbooks for accounting, but they don t have the level of inhouse infrastructure or software used by the cloud converters (see below). The cloud leaper category also includes startups that choose cloud services over traditional in-house IT as they start their business. Cloud converters. These SMBs currently have in-house solutions but are either moving or planning to move to hosted services. For example, many SMBs that currently have in-house servers may switch to hosted servers when it comes time to upgrade their infrastructure. Cloud expanders. These SMBs, which are already using some form of cloud services, represent an opportunity for upselling to new and expanded cloud offerings. Key Findings in the Cloud Our research showed that the Mexican cloud market grew over 30% during the course of We expect similar growth among all areas of cloud services over the next three years, with large numbers of SMBs moving to cloud services for the first time. As more of Mexico s population gains access to the Internet, we will see Mexican SMBs continuing both to choose the cloud for a major part of their IT and to expand their spending on cloud services. In addition to the ongoing expansion of Internet access, some key drivers of growth for the upcoming years include: Great willingness to move to the cloud for IT. Our 2013 research found that Mexican SMBs who are not yet using the cloud have an impressive willingness to adopt cloud services in the near future. Across most areas of cloud services, 50% or more of those not currently using a hosted service are considering adding it in the next three years. Strong cloud leaper opportunity. In this year s research, micro and small Mexican SMBs reported similar or greater willingness to adopt cloud services than the larger medium SMBs. In many developing cloud markets, medium SMBs often adopt cloud 4

7 services more quickly than micro or small SMBs, but this data indicates that micro and small SMBs will enter the market at a similar rate as their larger counterparts, pointing to an impressive cloud leaper opportunity over the next several years. Educating SMBs about the benefits of cloud services. As new SMBs enter the cloud market, service providers need to educate them about the business benefits of each cloud offering. Educating SMBs about how cloud services can benefit them can drive significant growth in their cloud usage. Parallels also found that different sizes and categories of SMBs have different needs and plans for their cloud service use. Therefore, for service providers to grow their cloud business, they must both know their target IT decision makers at SMBs and offer them the appropriate services for their businesses. The following sections examine Mexican SMBs use of each of the four categories of cloud services in more detail, describing their current use of these services and their future plans for spending. Infrastructure as a Service (IaaS) The IaaS market in Mexico has grown by a solid since our 2012 research, reaching a current value of $1.6B MXN ($125M USD). Overall hosted server use among Mexican SMBs encompasses both basic IaaS offerings (such as dedicated servers and virtual private servers) and add-on services (such as security and server backup). As Figure 2 illustrates, hosted server use has grown to 7% of all Mexican SMBs, up from 4% in early Parallels research projects even stronger growth in IaaS use in the near future. Figure 2. Hosted server penetration among Mexican SMBs (2013) 100% 75% 50% 25% 0% 83% 71% 65% 16% 11% 5% 7% 2% 4% 8% 8% Micro Small Medium Overall, 7% of Mexican SMBs now use hosted servers. Hosted Servers Both Hosted and In-house In-house Servers No Servers 5

8 Over the course of 2012, the IaaS market grew by, with the majority of growth coming from cloud converters. Over the past year, the majority of growth has come from SMBs with in-house servers converting from in-house to hosted servers. This growth was especially strong among micro SMB cloud converters. A sizable portion of the market growth also came from small and medium SMBs (those with more than 10 employees) purchasing their first servers from the cloud, rather than choosing to buy an in-house server. This cloud leaper opportunity will continue to drive growth over the next several years, as we will discuss next. Future Outlook Moving forward, Parallels predicts continued substantial growth in IaaS across all size segments of Mexican SMBs especially as more SMBs gain access to the Internet. We estimate that the market will actually accelerate in growth over the near term, with a compound annual growth rate (CAGR) of 46% through early 2016 to become a $4.9B MXN ($390M USD) market. Cloud converters will continue to contribute to the IaaS market growth over the next several years as current in-house servers need to be replaced. This opportunity is especially strong among SMBs without dedicated IT staff or IT consultants primarily micro and small SMBs. For these companies, hosted servers have the advantage of not requiring the maintenance effort or technical expertise that an in-house server needs. The most popular server add-ons in Mexico today are security (including antivirus and antispam services), server backup, and SQL databases. However, the most significant short-to-medium term opportunity will come from cloud leapers. 82% of Mexican SMBs still don t user servers of any type, and as these SMBs leap to the cloud, they will drive much of the growth of the IaaS market. Nearly three-quarters of SMBs who are not currently using a server said they would consider adding a hosted server in the next three years. The final contributor to market growth will be Mexican SMBs continued purchase of add-ons to complement their hosted servers. Offering addon applications not only can motivate more SMBs to move to the cloud through the promise of enhanced security, for example but also can increase service providers revenues. Mexican SMBs are already using a range of add-on services and applications for their hosted servers, with security (including antivirus and antispam services), server backup, and SQL database add-ons among the most popular, as shown in Figure 3. 6

9 Figure 3. Mexican SMBs use of add-on services and applications for IaaS (2013) 70% 60% 50% 46% 40% 45% 42% 30% 22% 10% 0% Security (inc. antivirus, antispam) Server backup SQL database Control Panel LAMP stack (Linux, Apache, MySQL, PHP) Micro Small Medium Overall SMBs 4% Development platform Over the next three years, add-on services will continue to be in demand. For example, 50% of SMBs whose IaaS doesn t currently include security definitely plan to add it, and 40% of those that don t have server backup definitely plan to add it. In the medium SMB segment, these numbers are even higher, with approximately over 60% of those that don t currently have security or server backup planning to add both services. By promoting these add-on services to SMBs when they purchase hosted servers, service providers can increase the value of their transactions while still keeping basic VPS and dedicated server prices low. Figure 4. Fastest growing server add-ons through 2016 Top 3 Server add-ons through Security (including antivirus, antispam) 2 Server backup 3 SQL database Web Presence and Web Applications In the past year, the Mexican web presence market grew by a substantial 34%, reaching a current market size of $1.3B MXN ($107M USD). 23% of Mexican SMBs now have a company website, and nearly 70% of these are third-party hosted, as shown in Figure 5. The market growth was driven primarily by SMBs of all sizes entering the web presence market for the first time. Website use grew 18% in 2012, and most of these new websites are third-party hosted. Among cloud converters, many micro SMBs who were self-hosting their sites also chose to switch to third-party web hosting in the past year. Finally, upselling customers with additional web applications has been an important source of growth. This year s research includes a number of new and popular web applications, contributing to the market growth. 23% of Mexican SMBs now have a company website, and nearly 70% of these are thirdparty hosted. 7

10 Because website penetration is still relatively low, the Mexican SMB market offers plenty of opportunity for service providers to attract new web hosting customers. Focusing on the new entrants to the market the cloud leapers is the best way to grow revenue in this developing market space. Overall, 23% of SMBs have a website, and 69% of these are third-party hosted. Figure 5. Website use among Mexican SMBs (2013) 35% 30% 25% 7% 5% 15% 12% 10% 16% 19% 19% 5% 0% Micro Small Medium Third-party hosted Self-hosted Future Outlook Looking forward, Parallels expects the growth in web presence and web applications to remain high over the next several years. Our research indicates that, for the next three years, the Mexican SMB web presence market will grow by at least 24% year-over-year, reaching $2.5MXN ($200M USD) in early Mexican SMB web presence market will grow by at least 24% year-over-year through early 2016, adding as many as one million new websites. Much of this growth will come from the 1.4 million SMBs who still do not have a website. The vast majority of these companies will chose thirdparty web hosting for their new websites. Our research indicates as many as one million new websites could be added to the Mexican web hosting market over the next three years from this opportunity. Less than 100,000 Mexican SMBs self-host their websites today, but the vast majority of these companies plan to switch to third-party web hosting, adding further opportunity to this market. Long-term, however, the most important area of growth in web presence is through web applications and add-ons. New for the Mexican 2013 research, Parallels asked SMBs about a wide range of web applications that can be used to secure and enhance their web presence (see Figure 6). Our findings indicate that the top current applications are search engine optimization, used by 35%; security and health monitoring, also used by 35%; and ecommerce capabilities, used by 30%. 8

11 Figure 6. Web application use among Mexican SMBs (2013) 50% 40% 35% 35% 30% 30% 27% 23% 16% 15% 10% 0% Search engine optimization Security & health monoitoring Ecommerce capabilities Mobile optimization SSL certificates Content management Backup Content delivery network - CDN Micro Small Medium Overall SMBs When asked which web presence applications they re planning to add over the next three years, SMBs listed search engine optimization, security and health monitoring, and SSL certificates as their top choices. In each case, the percentage planning to add the application is highest among medium SMBs, pointing to a strong opportunity in this group in the near term. Figure 7. Fastest growing website add-ons through 2016 Top 3 Website add-ons through Search engine optimization 2 Security and health monitoring 3 SSL certificates Mexican SMBs are also increasingly using social media to boost their web presence (see Figure 8). Facebook pages remain the leading form of online presence; nearly 25% of Mexican SMBs now have a Facebook page. This means that more Mexican SMBs have a Facebook page than a company website, indicating many SMBs are using Facebook pages as their entry level form of web presence before getting a website. Twitter and LinkedIn are also increasing in popularity, with both more than doubling their number of Mexican SMB users over the past year. Service providers can capitalize on these trends by enhancing standalone web hosting offerings with tools that give SMBs the ability to create Facebook pages and other forms of social media and cross-link them to their own websites. Nearly 25% of Mexican SMBs now have a Facebook page a rate higher than company website use. 9

12 Figure 8. Use of social media among Mexican SMBs (2013) 30% 25% 23% 15% 10% 13% 13% 10% 5% 5% 5% 0% Facebook page Twitter Local directories LinkedIn company profile Blog Youtube page 0% Rating sites Micro Small Medium Overall SMBs Current penetration of hosted premium and hosted PBX is low, but we expect this to be one of the highest growth areas for Mexican SMBs, growing 66% year-over-year. Hosted Communication and Collaboration As in 2012, we focused our hosted communication and collaboration research on two areas: hosted premium and hosted PBX. The overall market for these services in Mexico is only half the size of the IaaS and web presence markets, but is growing fast with a current market size of $624M MXN ($50M USD). Currently, just 4% of SMBs pay for hosted premium and only 3% purchase hosted PBX, but over the next few years, we expect these two cloud services to be among the highest growth areas for Mexican SMBs, growing 66% year-over-year to a market size of approximately $2.9B MXN ($228M USD) by early Hosted Premium Hosted premium includes added features such as team collaboration, shared calendars, archiving, mobility, and security. Compared with the overall market which includes free accounts through ISPs or providers like Google, in-house servers, and free hosted this market is small, but growing rapidly. Overall use grew slightly over the past year, with over 90% of Mexican SMBs now using an account, either free or paid. Within the hosted premium market, penetration rates among Mexican SMBs grew at a rate of 59% over the past year. The majority of this growth came from micro SMBs who converted from in-house servers to hosted premium and from small and medium SMBs who upgraded from free to hosted premium . 10

13 Future Outlook We expect many of the past year s trends in the market to continue. We see small and medium SMBs, in particular, driving huge growth in this space, although use by micro SMBs will increase, as well. Because the majority of Mexican SMBs already use in some form, cloud converters and cloud expanders will be the primary opportunities. Among cloud converters, over 80% of all sizes of SMBs are considering switching from in-house servers to hosted premium . However, this opportunity will be largest among medium SMBs, because these companies have the most mailboxes to convert. Another strong opportunity for hosted premium is among the cloud expanders. We consider SMBs that upgrade from free hosted to hosted premium to be cloud expanders, even though their current use of the cloud service is free. Parallels believes the best cloud expander opportunity lies in upselling small and medium SMBs currently using free hosted a group that represents approximately 65% of the small and medium SMBs currently using hosted to hosted premium . Such an upsell should be easy, since these SMBs can benefit both from the service s team collaboration aspects and from its pay-per-seat pricing model. Among cloud converters, over 80% of all sizes of SMBs are considering switching from in-house servers to hosted premium . Medium SMBs represent the largest opportunity. Figure 9. Distribution of different types of accounts among Mexican SMBs (2013) 100% 75% 50% 25% 0% 6% 5% 4% 9% 32% 56% 68% 41% 19% 17% 22% 21% Micro Small Medium Overall, 4% of SMBs are paying for hosted premium . Hosted service provider ISP or Free provider In-house server No Hosted PBX The hosted PBX market also remains small in Mexico, with only 3% of Mexican SMBs currently using it. Still, this number is three times greater than it was last year, when only 1% of SMBs reported using the service. Figure 10 shows the current distribution of different kinds of office phone systems among Mexican SMBs. Most of the growth in hosted PBX over the past year came from micro and small SMBs, as they converted from their in-house PBX systems to a hosted service. 11

14 Figure 10. Office phone use by Mexican SMBs (2013) (excludes mobile lines) 100% 5% 1% 1% Overall, 3% of Mexican SMBs are using hosted PBX. 75% 50% 25% 0% 79% 54% 42% 32% 63% 13% 3% 3% 4% Micro Small Medium Hosted/virtual PBX In-house PBX Regular phone lines No phone lines Future Outlook Although hosted PBX is still emerging as a key cloud service in Mexico, opportunities in this space could be substantial for service providers that integrate hosted PBX into their offerings and educate Mexican SMBs about the offering s business benefits. Because the current base of hosted PBX users is still small, the primary opportunities will be among cloud converters and cloud leapers, rather than cloud expanders. We still see lack of awareness, particularly among the smaller SMBs, as one of the main barriers to this service s adoption for instance, 38% of Mexican SMBs still haven t heard of hosted PBX. Reported misconceptions about the security and technical risks of hosted PBX also indicate that education is necessary to spur adoption. Despite this relatively low awareness of hosted PBX among Mexican SMBs, a full 50% are considering adding this service over the next three years. This growing interest makes it critical to understand at which point SMBs will decide to make the purchase. Parallels asked SMBs without hosted PBX what events would cause them to move forward with the purchase. As shown in Figure 11, the leading answers were a broken or unreliable PBX system, an explosive growth in the business or another major change in the business. Understanding these triggers can help service providers determine the highest-value SMB targets to pursue in boosting new customer growth. 12

15 Figure 11. Mexican SMBs purchase trigger points for hosted PBX (2013) 40% 38% 35% 30% 15% 19% 18% 10% 12% 11% 10% 5% 0% In-house PBX is broken/ unreliable Business has explosive growth Major change to busness Office location is changing Great value / price point PBX equipment lease is expiring Add new locations Micro Small Medium Overall SMBs Business Applications Business applications represent one of the best areas of opportunity in the Mexican SMB cloud services market. At $1.7B MXN ($133M USD), they also represent the largest category of current SMB cloud spending. Multiple analyst groups predict rapid adoption of online business applications over the next several years, and our research corroborates these forecasts. 29% of Mexican SMBs now use some form of free or paid online applications, with the top applications, as shown in Figure 12, being instant collaboration, file sharing, and online backup and storage. However, the usage of business applications among Mexican SMBs is still far smaller than among their counterparts in more developed countries, such as the US, where over 70% of SMBs use some type of online business application. As a result, we expect substantial growth in the use of online business applications as more Mexican SMBs gain access to the Internet. 29% of Mexican SMBs now use some form of free or paid online applications, with the top applications being instant collaboration, file sharing, and online backup and storage. 13

16 Figure 12. Paid and free online business applications used by Mexican SMBs (2013) 17% 15% 13% 10% 10% 8% 8% 8% 5% 5% 5% 3% 2% 0% Instant collaboration File sharing Online backup and storage Web conferencing Phone conferencing Payroll and HR Online CRM Online accounting Enterprise resource planning (ERP) Support / help desk Micro Small Medium Overall SMBs Future Outlook The business applications market among Mexican SMBs in early 2016 will be $5.6B MXN ($450M USD), with a 50% year-over-year growth rate. Parallels calculates that the business applications market among Mexican SMBs in early 2016 will be $5.6B MXN ($450M USD), with a 50% year-over-year growth rate. As with other cloud services, growth will take place among all types of cloud users: cloud leapers that have never used the particular application in-house and are trying it for the first time as an online application; cloud converters switching from their in-house software to the cloud; and cloud expanders increasing their use of online applications, whether by upgrading their current application plans, adding more seats, or expanding their use into additional application categories. Of those SMBs who are currently not using any form of online business applications, 47% report they either definitely plan to add one or more in the next three years or are considering doing so. Mexican SMBs currently using cloud services are both shifting more software use to the cloud and upgrading free applications to premium paid accounts. As Figure 13 shows, the fastest growing applications over the next three years will be instant collaboration, phone conferencing, and online backup and storage all with or more of SMBs definitely planning to add them. Support and help desk applications will also be popular, with 16% planning to add it. Figure 13. Fastest growing online applications through 2016 Top 3 Online business applications through Instant Collaboration 2 Phone conferencing 3 Online backup and storage 14

17 Offering the right services is especially important for the business applications category, as integrating endless numbers of online applications into a service provider s current offerings can be an expensive and complex process. To help minimize this complexity and to increase the profitability of delivering business applications, Parallels has two specific recommendations. 1. Target business application offerings to specific SMB size segments Since the top applications depend on the size of the SMB, service providers should offer the right business applications to the specific SMB size segments they wish to target. 2. Consider Bundling Business Applications and Other Cloud Services In our 2013 research, we asked Mexican SMBs whether they would like to buy cloud services as part of a discounted bundle of several cloud services. An impressive 89% of Mexican SMBs said they were interested. The majority of Mexican SMBs also say that it is important for them to buy all their cloud services from a single provider. By selling bundled cloud services that target each size segment, service providers will be able to increase ARPU while also giving SMBs the cloud services they want. Overall, the growth of the business applications category makes it a favorable space to pursue especially since becoming a full-service provider continues to be the trend in the cloud services market. An impressive 89% of Mexican SMBs said they would like to buy cloud services as part of a discounted bundle of several cloud services. 15

18 Conclusion The Mexican SMB cloud services market grew over 30% during the past year, reaching $5.2B MXN ($415M USD) at the beginning of As Internet access increases in Mexico, more SMBs will enter the cloud services market, and all types of cloud services will become more established. Our research indicates that the market will continue to grow rapidly, reaching $15.9B MXN ($1.3B USD) by early Parallels sees strong opportunities for service providers who are able to tap into Mexican SMBs enormous interest in cloud services, reach these businesses with the best cloud services for their size, and take the time to educate potential customers about their service offerings. 16

19 Learn more This Parallels Market Outlook for 2013 report only covers a portion of the extensive data included in Parallels SMB Cloud Insights research. You can learn more by: Visiting Parallels PartnerNet. For Parallels Partners, register for Parallels PartnerNet and go to the SMB Knowledge Center for more SMB Cloud Insights data analysis and go-to-market materials. Find Parallels PartnerNet at Attending an SMB Cloud Insights webinar. Register for our monthly webinar series highlighting Parallels research and teaching SMB marketing strategy, tips, and best practices to help grow your hosting business. Go to subscribe/ to sign up for webinar notifications. Talking to Parallels Business Consulting team. Parallels Business Consulting delivers services designed to accelerate time-to-revenue by 20-35%, increase profits, and grow subscribers. We provide critical business thinking and best practices forged from hundreds of deployments, custom research by SMB Cloud Insights, and go-to-market workshops. Start a conversation with Parallels Business Consulting team. Get in touch at accelerate@parallels.com. Please contact SMB@parallels.com with any further questions. Parallels is committed to helping our partners understand the best opportunities in the SMB cloud market and profit from the cloud Parallels IP Holdings GmbH. All rights reserved. The Parallels logo and Parallels are registered 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. About Parallels Parallels enables service providers to rapidly launch and efficiently deliver the most profitable cloud services by automating the delivery of the broadest set of solutions demanded by small businesses. Founded in 1999, Parallels is a fast-growing company with 900 employees in North America, Europe, and Asia. For more information, please visit 17

20 Global Headquarters 500 SW 39th Street, Suite 200 Renton, Washington USA main: EUNA Willy-Brandt-Platz Munich Germany main: HostingSales.eu@parallels.com APAC 3 Anson Road, #36-01 Springleaf Tower Singapore main: HostingSales.apac@parallels.com For more office locations