2013/ Parallels SMB Cloud Insights TM. Europe, Middle East, and Africa

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1 2013/ 2014 Parallels SMB Cloud Insights TM Europe, Middle East, and Africa

2 EUROPE, MIDDLE EAST, AND AFRICA (EMEA) MARKET Mature and Maturing Markets Mature Markets 19% of EMEA Maturing Markets 81% of EMEA Maturing Markets 33% 3-Year CAGR Mature Markets 20% 3-Year CAGR

3 Current Cloud Market Size in the EMEA Region Billions of Euros 17.5 Overall Market Infrastructure-asa-service Web Presence & Web Applications Unified Communications Business Applications Cloud Services Categories This research is focused on the cloud services that matter most to SMBs: IaaS, Web Presence and Web Applications, Unified Communications, and a general category we refer to as Business Applications. Infrastructure-as-a-service (IaaS): Dedicated servers, virtual private servers (VPS), managed hosting, as well as add-on applications and services for hosted infrastructure, such as control panels, development platforms, LAMP stack, security, server backup, and database add-ons. Includes cloud servers, due to their increasing use among SMBs. Web Presence and Web Applications: Third-party web hosting, domain registration, SSL and e-commerce add-ons, site-building tools, high-opportunity web applications web server backup, content delivery networks (CDN), content management, mobile optimization tools, search engine optimization (SEO), and web server security and health monitoring. Unified Communications: Business-class services, including security, archiving, along with mobility and hosted business voice services. Includes communication and collaboration applications, such as web and phone conferencing, instant collaboration, and mobile device management (MDM). Business Applications: The major types of software applications that can be accessed online file sharing, online accounting, online backup and storage, online customer relationship management (CRM), payroll and human resources (HR), support and help desk, and virtual desktop (VDI). 1

4 INFRASTRUCTURE-AS-A-SERVICE (IaaS) Planned Top Add-ons Server Backup Security Database Add-ons Total Server Add-Ons by Industry 29% 28% 26% 26% 11% 8% 8% 9% 22% 21% 20% 19% 10% 6% 4% 4% 18% 20% 18% 17% 12% 16% Health Care Finance & Insurance Wholesale Trade Real Estate Hospitality & Food Service Retail Trade Tech Services Manufacturing Current Use Will Add Server Add-Ons within 3 Years 50%+ of SMBs Use Hosted Servers as Web Servers 31% of Total Cloud Services Market in

5 WEB PRESENCE Top Current Web Applications for 2014 SEO Security CMS E-commerce Mobile Optimization SMBs are More Likely to Buy Web Applications with Initial Website Purchase vs. Post-purchase 30% 36% 41% 31% 24% Bundled with Website Purchase from Hoster Return to Hoster for Subsequent Purchase Micro (1-9 employees) Small (10-49 employees) Medium ( employees) 3

6 WEB PRESENCE Over 70% of SMBs Do Not Have Mobile-optimized Websites 28% Mobileoptimized 32% Optimization not needed 40% PC-only optimized Fastest Growing Web Applications through Mobile Optimization SEO E-commerce Security

7 Total Web Applications Growth by Industry 25% 23% 8% 21% 10% 8% 18% 17% 17% 16% 16% 6% 7% 7% 6% 7% 17% 13% 13% 12% 10% 10% 10% 9% Wholesale Trade Hospitality & Food Service Retail Trade Tech Services Finance & Insurance Real Estate Manufacturing Health Care Current Use Will Add Web Application within 3 Years Share of Web Presence Market over 3 Years 59% Maturing 41% Mature 31% Mature 69% Maturing 2013 Share of Web Presence Market 2016 Share of Web Presence Market 5

8 UNIFIED COMMUNICATIONS Top Premium Features for SMBs Security Mobile Access Shared Calendar Archiving Top Purchase Triggers for Hosted 29% 38% 35% 23% 39% 42% 17% 27% 20% 13% 7% 22% Good Price Point Need Increased Security Need Professional Look Company Adds Employees Micro (1-9 employees) Small (10-49 employees) Medium ( employees) Top Purchase Triggers for Hosted PBX Existing PBX Old/ Unreliable Price New Office Locations Company Growth 6

9 Web Conferencing by Industry 29% 28% 28% 27% 23% 13% 17% 14% 14% 11% 12% 9% Information & Communications Health Care & Social Assistance Transportation & Warehousing Hospitality, Food Service, & Restaurants Finance & Insurance Currently Use Will Add Web Conferencing within 3 Years Phone Conferencing by Industry Educational Services Information & Communications Real Estate Hospitality & Food Service Professional, Tech & Science Transportation & Warehousing 32% 12% 44% 28% 16% 44% 28% 13% 41% 28% 13% 41% 26% 13% 39% 26% 13% 39% Currently Use Phone Conferencing Will Add Phone Conferencing within 3 Years Three Year Growth Opportunity 62% 36% 61% 32% Annual Growth Rate of PBX Annual Growth Rate of Premium Maturing Markets Mature Markets 7

10 BUSINESS APPLICATIONS Top Business Applications File Sharing Online Backup Payroll & HR Phone Conferencing Cloud-based line of business apps such as support/help desk, accounting, and payroll are seeing rapid growth across the region Over 50% of SMBs Use a Trial before They Buy an Online Application EMEA Average 36% Purchased When the Trial Expired Purchased to Have Access to More Product Features 29% Purchased Without Free Trial 50% Prefer to Buy Bundled Cloud Services/ Applications across the Region Business 5.5B Opportunity Apps 27% in Maturing Markets in 2016 Share of Total Market by

11 Total Business Application Growth by Industry Finance & Insurance Health Care Hospitality & Food Service Real Estate Manufacturing Professional, Tech & Science Retail Trade Wholesale Trade 21% 19% 17% 19% 19% 17% 19% 17% 11% 12% 13% 11% 10% 12% 10% 11% 32% 31% 30% 30% 29% 29% 29% 28% Current Use Will Add Business Applications within 3 Years 2016 Cloud Market Size in the EMEA Region Billions of Euros 38 Cloud Opportunity Infrastructure-asa-service Web Presence & Web Applications Unified Communications Business Applications 2014 Parallels IP Holdings GmbH. All rights reserved. The Parallels logo and Parallels are registered trademarks of Parallels IP Holdings GmbH. No part of this publication may be reproduced, photocopied, stored on a retrieval system, or transmitted without the express written consent of Parallels. 9

12 Global Headquarters 500 SW 39th Street, Suite 200 Renton, Washington USA main: sp.parallels.com EMEA Willy-Brandt-Platz Munich Germany main: APAC 3 Anson Road, #36-01 Springleaf Tower Singapore main: For more office locations sp.parallels.com/contact

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