A Close Look at How SMBs Are Using Cloud Services

Cloud services

1 - A Close Look at How SMBs Are Using Cloud ServicesA Close Look at How SMBs Are Using Cloud Services

A new study examines how small and midsize businesses are using cloud services and the most significant opportunities for service providers in this space.

2 - Big SpendersBig Spenders

The 2015 U.S. cloud services market for SMBs encompasses more than 7 million SMBs that spend on average $3,323 annually on their cloud services.

3 - Hosted vs. In-HouseHosted vs. In-House

32% of SMBs use hosted servers. Top triggers for IaaS include business model changes, and in-house servers did not do enough or had too many challenges.

4 - Barriers to IaaSBarriers to IaaS

SMBs with in-house servers said price (48%), security and privacy (34%), and legacy systems and other tech concerns (24%) are the top barriers to moving to a hosted solution.

5 - Buying IaaSBuying IaaS

SMBs buy IaaS via Web hosters (47%), local IT sources (VARs) (21%), pure cloud providers (10%) and telco/cable companies (6%). Purchases are conducted online (47%), by phone (22%), via VARs (13%) and through direct sales (10%).

6 - Selecting a Service ProviderSelecting a Service Provider

The most important factors in selecting a service provider include price (36%), existing relationship (21%), ease of management (15%) and security (14%).

7 - More Value Equals Higher RevenueMore Value Equals Higher Revenue

54% of SMBs would pay an additional $10 per month for unlimited storage, and 47% would pay an additional $10 per month for high availability.

8 - Web PresenceWeb Presence

84% of SMBs have a Website hosted by a third-party. Key factors SMBs consider when selecting a Web hoster include price (62%), customer experience (32%), existing relationship (23%) and security (17%).

9 - Big BusinessBig Business

Top Website add-ons in 2015 include search engine optimization (SEO) (36%), backup (26%), security (24%), Secure Sockets Layer (SSL) (20%), e-commerce (15%) and content management (13%).

10 - Business Email and BundlingBusiness Email and Bundling

65% of SMBs’ business email is hosted by a service provider, 23% use a free service and 7% is hosted on an in-house server. What’s more, 54% of third-party hosted email is bundled with Website hosting or a hosted server.

11 - More OpportunitiesMore Opportunities

82% of SMBs don’t use hosted business voice services (hosted PBX services).

12 - Top BarriersTop Barriers

SMBs said the biggest barriers to hosted voice services are price (53%), lack of knowledge (46%), concerns about complexity (17%) and technical concerns (13%).

13 - Collaboration AppsCollaboration Apps

In 2015, SMBs are using instant collaboration (39%), Web conferencing (24%) and mobile-device (2%) management. In 2018, use of these apps will grow to 41%, 27% and 6%, respectively.

14 - Business AppsBusiness Apps

The number of SMBs without SaaS dropped from 32% to 28% in the past year. Key factors in selecting business apps include price, features and capabilities, business need and customer experience.

15 - To Pay or Not to PayTo Pay or Not to Pay

The most popular cloud app is file sharing (35%), but only 17% of SMBs pay for this service. In comparison, online CRM is used by only 6% of SMBs, but 83% of users pay for it.

16 - Other Popular Cloud AppsOther Popular Cloud Apps

Other popular cloud apps include payroll and HR (28%), online accounting (28%), and online backup and storage (27%).

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