7-SMB-Cloud-Stats

Gaining market traction can be difficult which is why differentiation of business benefits and technology combined with great marketing is essential for cloud service providers. And that can be hard work. So, if you need a reminder why you are working hard to differentiate, here are 7 encouraging stats from the Odin SMB Cloud Insights Report:

  • 4% – The report forecasts that the small and medium business (SMB) cloud services market will grow at a compound annual growth rate (CAGR) of 11.4 percent in the next three years from $25.2B in 2015 to $34.9B by 2018.
  • $9.4B – the largest market opportunity for cloud services in 2015 is infrastructure-as-as-service (IaaS) at $9.4B
  • 8% – IaaS includes virtual private servers, dedicated servers and elastic computing and will grow at 8 percent CAGR and reach $11.8B by 2018.
  • 9% – A key driver for cloud services growth will be in hosted business applications, software-as-a-service (SaaS) like file sharing, payroll and HR, and online backup and storage, which will all increase at a CAGR of 23.9 percent over the next three years, reaching a total market size of $12B.
  • 7 million SMBs The current cloud services market represents more than 7 million SMBs that spend, on average, $3,181 on cloud services annually.
  • 417,000 paid users – Online CRM will be one of the fastest-growing business applications over the next three years, growing at a CAGR of 27 percent and adding 417,000 paid users by 2018.
  • 50/50 Split – SMBs are evenly split between hosted and in-house servers. This is a shift from 2014, when in-house servers were more popular than hosted servers.

SMBs want cloud services and will get them. As a result, you need to position yourself to get a slice of this pie because it is not just for giants like AWS, Microsoft Azure or Google. Imagine if you could get just .01% of $24.6 billion IaaS pie? That’s just under $2.5 million. To gain some of this market share requires technology, business planning and market positioning to differentiate and compete.

Real-World Examples of Gaining Market Share

Need some ideas for how you can gain some market share? Here are two examples:

  1. AB Network Automates the Cloud & Offers Sophisticated Application Stacks, Ready to Use

Situation

Based in Panama, AB Network operates a dedicated data center to offer its customers IaaS, SaaS, back up site monitoring, web applications and services administration.

Pablo Olivo at AB Network, said, “We were wasting time and revenue generating opportunities by manually provisioning our infrastructure. We needed to automate our infrastructure and that required cloud orchestration software so we evaluated Flexiant and OpenStack.”

Result

Flexiant Cloud Orchestrator was selected to reduce the time to provision infrastructure and application resources for its customers while decreasing costs. “Ease of deployment and time to market was of the essence so we opted for Flexiant Cloud Orchestrator,” said Olivo.

Introduced to AB Network by Parallels, Flexiant was selected because of its speed of provisioning not only infrastructure, but also the infrastructure blueprint functionality which allows the cloud service provider to offer pre-packaged, configured and sophisticated application stacks ready to use.

Olivo continued, “In a side by side comparison of OpenStack, we were impressed with the ease of understanding the Flexiant Cloud Orchestrator deployment within our datacenter and also how it offered us a more complete product to go to market. We also needed only three servers with minimum specs to get up and running versus the five needed for OpenStack.”

AB Network uses the Flexiant integrated billing, operate on KVM hypervisors and benefit from an out of the box store front. The service provider is able to automate cloud provisioning and offer differentiated and sophisticated application stacks ready to use.

Key Takeaway: Automate Cloud Provisioning, Differentiate and Offer Sophisticated Application Stacks

  1. Advance Group Targets SMBs with IaaS Based on Flexiant Cloud Orchestrator

Situation

Advance Group wanted to offer a brand new cloud service to extend its portfolio of technology services in the Spanish market. With offices in Barcelona, Madrid and Girona, the service provider needed a solution that not only offered self-service capabilities and extensive metering and billing, but also supported out-of-the-box Spanish language and local currency, Euros.

Pedro Collado Alonso, División Manager, Cloud & IT Network, Advance Group said, “When launching our cloud solution, we evaluated two vendors. We required VMware hypervisor support within an easy to use, simple platform that could give us the functionality to give our customers self-service control based on their infrastructure requirements.”

Result

Advance Group selected Flexiant Cloud Orchestrator to power its cloud computing solution aimed at SMBs. By selecting Flexiant, Advance Group has the cloud management tools necessary to support an IaaS public cloud service.

“We were impressed with Flexiant’s support for VMware, but also its multi-hypervisor support should we wish to support others in the future,” said Pedro Collado Alonso, División Manager, Cloud & IT Network, Advance Group.

Advance Group also saw the power of Flexiant’s application blueprints solution that contain all the key information to successfully build and deploy applications in the cloud – including server, software, storage, network, images and firewall details, and how they all relate together. “Flexiant gives us simplicity to launch complex applications quickly and easily for our customers,” continued Collado Alonso.

Flexiant Cloud Orchestrator’s flexible self-service functionality allows Advance Group the ability to give customers greater control and visibility of their cloud services, automating provisioning for ease of use and rapid self-service, differentiate services by offering tailored solutions for individual customers and the ability to offer choices in levels of services. Flexiant also delivers Advance Group multi-level, multi-currency, metering and billing. The unique, full-featured, integrated, multi-currency billing system provides measurement, rating, invoice line generation and credit card collection facilities.

Key Takeaway: Look for Multi-Hypervisor Support and Simplicity to Launch Complex Applications – in One Solution

We recognize that any cloud orchestration solution is not merely about the latest technology features and functions. Instead, it is about your business, it is about your cloud. We are helping you win the war on the cloud battleground by arming you with the solution to develop, launch and manage your cloud service business, quickly and simply.

For more examples, download 5 More Real-World Examples of Service Providers Making the Most of the Cloud Opportunity.


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