MicroSourcing Blog - Offshoring Solutions to the Philippines

Opportunities in the SMB Cloud Market

by: Sarah Joson

Tuesday, February 12, 2013

Category: Outsourcing News

Small and medium-sized businesses (SMB) are hard to classify nowadays as there are countless industries that have churned out close to 250 million SMBs globally.

On the bright side, this diversity presents opportunities for a trending business tool known as cloud technology. A study done by Forrester Research showed that more and more businesses ranging from small businesses to mega enterprises were seen outsourcing cloud services. Most of the sourcing activity came from the small business segments, which were estimated to employ 10 or less. It was also found that from 2011 to 2012, the use of the cloud increased from 10 to 20 percent.

Moreover, it is anticipated that the cloud-driven market in the SMB space will grow nearly two times its current size from US$45 billion in 2012, to US$95 billion in 2015.

TechGoondu.com has listed five possibilities for the SMB cloud market:

DR/BC will play a major role. By conducting a survey participated by SMBs, Forrester was able to identify two similar segments in which cloud technology is likely to flourish this 2013. These are disaster recovery and business continuity.

Clients prefer bundled services. SMBs are also anticipated to procure SaaS more compared to PaaS or IaaS as it is already pre-packaged and is ready for integration.

Demand for business intelligence. Before, SMBs preferred SaaS for its capability of providing CRM and collaboration software, but a 10 percent growth within the last four years was seen for its BI and decision support traits.

Itís no longer about cost savings.
The Forrester report also cited that even if the primary reason for outsourcing is to save money, they are looking for things such as business agility and aptitude to focus on core functions that will add value to their businesses.

So much activity, so little time.  Some will be confused in identifying the IaaS providers, hosting companies, telecom operators, traditional system/service vendors, system integrators, and outsourcing companies as it is a fast-paced field where everybody is trying their best to outdo each other.

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