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78% of U.S. small businesses will have fully adopted cloud computing by 2020 more than doubling the current 37% as of today.
The U.S. Small & Medium Business (SMB) cloud computing & services market will grow from $43B in 2015 to $55B in 2016.
Hybrid cloud is now being used by 18% of cloud-using small businesses (1 to 99 employees).
For an increasing number of SMBs globally, their cloud application and service providers are their IT department. Cloud-based systems are particularly valuable to small and mid-tier manufacturers in North America who have small IT departments that are already overworked keeping key systems running. For these SMBs, cloud-based continuous delivery of new enhancements along with subscription-based pricing makes budgeting for services predictable and manageable.
The following are the key take-aways from recent research on SMB cloud computing adoption, forecasts and market estimates:
- U.S. SMB cloud computing & services market will grow from $43B in 2015 to $55B in 2016. Compass Intelligence forecasts a compound annual growth rate of 40% from 2011 to 2016. The largest opportunity lies within data services, cloud solutions, applications/software, and professional/managed services. The following graphic provides an overview of the Compass Intelligence forecast. Source: The Cloud Market of the Future.
- 37% of United States small businesses are adapted to the cloud, but an anticipated 78% will be fully cloud operational by 2020. 65% are conducting backoffice work including bookkeeping and accounting with cloud-based apps today. Nearly half (43%) of small business owners use a smartphone as the primary device to run their operations. These and many other insights are from
Intuit ’s e-book summary of survey results The Appification of Small Business: Why the Small Business Market is the Next Big Thing for Developers (e-book on SlideShare).
- Cloud computing, social media, mobility solutions and collaboration are the four highest SMB priorities for 2015. Increasing profitability, business growth, reducing operational costs and attracting and retaining new customers are the top four SMB business issues. The following graphic compares business issues, IT priorities and IT challenges based on techaisle’s analysis. Source: 2015 Top 10 SMB Business Issues, IT Priorities and IT Challenges.
- E-mail/collaboration software (63%), Web/e-commerce (55%), office tools & productivity (56%) are the three most common cloud apps SMBs are planning to adopt
next 12 months. Source: Cloud Computing in Small Business, New Jersey Institute of Technology (Infographic).
- The European SMB Cloud Service market will grow from €18.9B this year to €30.1B in 2018, attaining a 17% compound annual growth rate (CAGR). 62% of business application sales are closed after a free trial offer according to the study. Source: Odin SMB Cloud Insights 2015 (pdf, no opt-in, 8pp.)
- 59% of SMBs using cloud services report significant productivity benefits from information technology compared to just 30% of SMBs not yet using the cloud. 82% of companies have saved on costs by utilizing cloud technology in their business. Source: Why Small Businesses Are Flying To The Web (Infographic).
- 78% of U.S. small businesses will be fully adapted to cloud computing by 2020, more than doubling the current 37%.These and other insights are from a jointly produced study from Intuit (INTU) and Emergent Research report titled Small Business Success in the Cloud (SlideShare).
- 64% of SMBs in Western Europe are already using cloud-based software, using three applications on average. 78% of businesses indicate that they are considering purchasing new cloud solutions in the next 2-3 years creating the potential to move the average number of applications adopted to seven, with 88% consuming at least one service by 2018. Source: The small business revolution: trends in SMB cloud adoption (PDF, no opt in).
- IDC found that 81% of US companies with 100+ employees currently are using Cloud-based applications. 37% of US small businesses have deployed cloud solutions and over 28% plan to use cloud. Worldwide adoption rates are also strong. India leads the pack with 32% growth in cloud adoption rates, followed by Brazil (29%), China (22%), and the United Kingdom (18%. Source: Sharpening the Small Business Competitive Edge Presentation (SAP & IDC briefing) (PDF, no opt in).
- Hybrid cloud is now being used by 18% of cloud-using small businesses (1 to 99 employees). Techaisle LLC projects that number is expected to grow to 28% by this year, an increase of 56%. Source: Rosy Forecast for SMB Hybrid Cloud Adoption.
- UK-based Small and Medium Enterprises (SME) use cloud-based applications for hosting services (55.4%) the majority of the time. Additional cloud services include backup services (41.5%), hosted e-mails (41.4%), data storage (40.9%) and booking systems (22.9%). Source: Towergate Insurance (Infographic).
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