UK SMBs seek bundled cloud services for better value

News Jane McCallion Nov 26, 2012
Businessman on cloud
Businessman on cloud

SMB cloud uptake in UK already leading the world, but services providers need to be more targeted to fully benefit

The UK SMB cloud services market grew by 16 per cent in 2011, reaching a value of £1.2bn and is expected to reach £2bn by 2015, according to cloud hosting company Parallels.

The results come from the organisation’s latest SMB Cloud Insights report for the UK, which is designed to show how cloud service providers can profit by delivering facilities to SMBs.

The SMB cloud market in the UK is amongst the most developed in the world, previous research by Parallels has shown. However the organisation says the growth of cloud in the UK will continue to be driven by SMBs, whether they are adopting new services or adding applications and functionality to their existing services.

There is a divergence between business sizes as to what cloud services they are most interested in. Micro and small SMBs lean towards online backup and storage, online accounting and instant collaboration, while medium SMBs are more phone conferencing, online backup and storage, file sharing, and web conferencing.

The report also shows the majority of the 400 UK SMBs surveyed are interested in purchasing cloud services as part of a discounted bundle. Parallels suggests that by selling bundled cloud services that are specifically targeted to each size segment, they will be able to “increase ARPU while also giving SMBs the cloud services they want”.

John Zanny, vice president of service provider marketing alliances at Parallels said: “Our research continues to demonstrate that UK service providers who offer SMBs the right bundle of services at the right price will expand their customer base and revenues as well as enjoy the most growth.

“The challenge to service providers is how to better know and understand the buying behaviours of their SMBs,” Zanny concluded.