SMB Cloud InsightsTM

Transcription

1 2015 SMB Cloud InsightsTM INDIA

2 DEFINITIONS Cloud Services Defined This research focuses on the cloud services that matter most to SMBs: IaaS, web presence and web applications, unified communications, and other general business applications. Infrastructure-as-a-service (IaaS): Cloud servers (previously not researched in our last study of India) Dedicated servers Virtual private servers (VPS) Managed hosting Add-on applications and services for hosted infrastructure: Control panels Development platforms LAMP stack Security Server backup Web presence and web applications: Third-party web hosting Domain registration Web applications: Content delivery networks (CDN) Content management systems (CMS) E-commerce Health monitoring Mobile optimization tools Search engine optimization (SEO) Site-building tools SSL Web server backup Web server security Unified communications: Communication and collaboration applications: Web and phone conferencing Instant collaboration Mobile device management (MDM) Business-class services: security and archiving Business voice services: Mobility and hosted phone services such as hosted PBX General business applications: Major software applications accessible online: File sharing Online accounting Online backup and storage Online customer relationship management (CRM) Payroll and HR Support and help desk Virtual desktop (VDI) d1 SMBs Defined We define SMBs also known as small and medium enterprises (SMEs) as companies with 1 to 250 employees. There are 3.8 million SMBs in India today. SMB categories include micro (1-9 employees), small (10-49 employees), and medium ( employees).

3 Cloud Opportunities Cloud leapers: SMBs that are not currently using an in-house IT solution (no servers, web servers, or PBX systems) and are likely to move straight to the cloud, i.e., leaping over intermediate in-house IT solutions. Cloud converters: SMBs with in-house solutions that are moving or planning to move to hosted services. For example, an SMB with in-house servers, that is planning to switch to hosted servers when they next upgrade their infrastructure. Overall SMB Cloud Services Market in India 106.6B ($1.6B USD) 2015 Odin SMB Cloud Insights is in its fifth year of research into the consumption of cloud services by small and medium businesses (SMBs). In this study, we interviewed more than 400 Indian IT decision makers and found that SMBs from a variety of sectors are moving business functions into the cloud. Tools and solutions previously reserved for enterprise-level organizations are being implemented in smaller firms as developers create services specifically for the SMB market. Our research is intended to help cloud service providers take advantage of the trends discussed in this report to meet the evolving needs of their SMB customers. New to this year s research is an exploration of the SMB s journey of researching, purchasing, and using cloud services. This data will help service providers build successful relationships with their customers. 50.3B 12.6B 20.8B 22.9B Infrastructure-asa-service Web presence Unified communications Business applications 2

4 INFRASTRUCTURE-AS-A-SERVICE (IaaS) The Indian IaaS market has seen explosive growth in recent years. SMBs have increasingly complex requirements and are adding hosted and cloud services to match the growth and performance needs of their businesses. Two of their key requirements include the ability to run a variety of workloads and robust services and low downtimes. As more SMBs enter the IaaS market, service providers who address these needs will gain new customers. Buying IaaS Top Barriers to Hosted Infrastructure % 29% 27% 18% Price Bandwidth or connectivity issues Security or privacy concerns Technical challenges IaaS Research Methods Internet search Business industry news (online or offline) Trusted advisor Change to: Local IT resource (VAR) 60% 43% 35% 32% Existing service provider 16% 3 Note: 52% of SMBs use more than one method to research IaaS.

5 Top Factors in Choosing Service 25% Ability to expand or contract quickly 25% Ease of management 20% 20% 10% Price Security or privacy concerns Existing relationship Using IaaS Top Workloads in Production 39% 38% 48% 36% 43% 50% 30% 46% 62% 39% 35% 41% Data mining/ analytics Content management system Database applications E-commerce systems 23% 30% 44% 31% 31% 45% 22% 33% 37% 15% 30% 31% Payroll, HR admin, and benefit management Customer relationship management (CRM) Accounting/ financials Project management/ productivity tools Micro Small Medium Top Hosted Server Add-ons 7% 27% 46% 22% 46% 18% 47% 12% 35% 11% Control panel Security Server backup Development platform LAMP stack 4

6 Customer Experience 51% of SMBs would pay an additional 1000 per month for high availability 42% of SMBs would pay an additional 1000 per month for unlimited storage Total Server Add-ons by Industry 60% of SMBs have a positive opinion of their hosted service provider Areas for Improvement % 19% 18% Performance (speed, availability) Security vulnerabilities % 12% Support experience Self-service administration Usability 5 How SMBs Are Resolving Issues Exploring alternative options Escalating with the vendor Moving in-house Cancelling the service 42% 39% 17% 2%

7 IaaS Opportunities through 2018 Likelihood of Entering the Cloud Market 75% 61% Cloud leapers (New adoption) Cloud adopters (Switching from in-house) IaaS Opportunities through % CAGR 487M 50.3B 706M 93.7B $768M USD $1,431M USD The Indian IaaS market will grow from 50.3B ($768M USD) to 93.7B ($1,431M USD) over the next three years. This impressive growth will come from an expanding economy as well as increased adoption by Indian SMBs. Service providers can differentiate themselves by improving their performance capabilities, as only 60% of SMBs have a positive opinion of their provider. Success will also come from developing IaaS offerings that can run a variety of workloads, a requirement that increases as SMBs grow in size. 6

8 WEB PRESENCE Many SMBs created new websites this year, causing the web presence market to reach 12.6B ($193B USD). This market is challenging because SMBs demand quality service and low prices, and they have several other needs that must be answered by service providers. One key need is a mobile optimized website, as only 58% of SMB websites are mobile optimized and those without this functionality are unable to connect with the large base of mobile customers. Another requirement is site-building tools. Currently, 43% of SMBs use a third-party web designer, but many would move to a quality website builder if the price was right. Website Hosting Location 29% 29% of websites are hosted in-house. Of those SMBs with in-house websites, 62% plan to add a third-party hosted website in three years. 71% 71% of websites are hosted by a third party. 7

9 Buying a Website Key Factors in Choosing a Web Hoster 70% Price 46% 40% 35% 19% 19% Customer experience/ support Security Existing relationship Brand recognition Ability to scale resources Preferred Purchase Method 67% 65% 51% 17% 11% 16% 15% 23% 31% 1% 1% Online Over-the-phone Face-to-face (in office) Other 2% Micro Small Medium 88

10 Website Add-ons and Management Top Website Add-ons 49% 74% 40% 54% 36% 52% 29% 43% SEO Backup E-commerce capabilities SSL 20% 36% 20% 32% 16% 40% 10% 18% Content delivery network Content management Security and health monitoring Site-building tools Mobile-Optimized Websites 11% Only displays properly on a computer 31% Displays on mobile without optimization 58% Mobileoptimized 9

11 Customer Experience 84% of SMBs have a positive opinion of their web hoster Total Server Add-ons by Industry Areas for Improvement Performance (speed, availability) Support experience Security vulnerabilities Self-service administration Usability 61% 45% 39% 35% 17% How SMBs Are Resolving Issues Exploring alternative options Escalating with the vendor Moving in-house Cancelling the service 41% 38% 20% 1% 10

12 Web Presence Opportunities through 2018 Likelihood of Entering the Cloud Market 39% 62% Cloud leapers (New adoption) Cloud converters (Switch from in-house) Web Presence Opportunities through B $193M USD 25.3B $386M USD 26% CAGR The Indian web presence market will continue to see strong growth in the coming years. SMBs switching from in-house hosted websites will be a major driver, as will SMBs building websites for the first time. There is an opportunity to capture these new customers through migration support and by offering high-quality website building and management tools. As mobile internet penetration is far stronger than hardwire internet penetration in India, SMBs must meet the mobile customer s needs. Beyond formatting websites to mobile screens, truly mobile-optimized websites require e-commerce tools to accept mobile payments, and for location tracking and social media tie-ins. SMBs will rely on the service provider to offer the appropriate tools to match these needs.

13 UNIFIED COMMUNICATIONS Indian SMBs are becoming increasingly connected across the country and into the larger global economy, which means that the need for quality communications has never been higher. Hosted business usage has grown, while hosted business voice services is still a nascent market. These services along with collaboration SaaS applications will provide plenty of opportunities for service providers in the coming years. Hosted by a service provider Free service Hosted on an in-house server No 41% 29% 11% 19% Price vs. Brand 15% of SMBs value brand and price equally Hosted 27% of SMBs value price over brand 58% of SMBs value brand over price 12

14 Top Purchase Triggers for Premium Hosted % 17% 16% Security Calendar alerts/notifications Archiving % 12% Outlook integration Shared calendar 49% of premium hosted is purchased separately 51% of premium hosted is bundled with a website 52% of SMBs have a positive opinion of their hosted provider Total Server Add-ons by Industry 13

15 Top Areas for Improvement of Premium Hosted Performance (speed, availability) Security vulnerabilities Support experience Usability Self-service administration 36% 28% 17% 13% 6% Hosted Business Voice Services 94% of SMBs do not have business voice services Total Server Add-ons by Industry Top Barriers to Hosted Business Voice Services 44% 36% 34% 24% Price Security and privacy concerns Technical concerns Lack of knowledge about hosted business voice services 14

16 Collaboration Applications 10% 26% 15% 30% 6% 21% Web conferencing Instant collaboration Mobile device management Likelihood of Entering the Cloud Market 77% 64% 82% Cloud leapers (New adoptions) 71% Cloud adopters (Switch from in-house) Hosted PBX 15

17 14% CAGR 487M 20.8B $318M USD 30.8B $470M USD The communications and collaboration market is still budding, as many SMBs have yet to adopt these services. However, there is still a strong opportunity for SaaS communication services. In a country where it is common for individuals to use multiple SIMs, services which promote connectivity without depending on individual SIMs will be successful. 16

18 BUSINESS APPLICATIONS Business applications are becoming increasingly important to SMBs due to their low initial costs and ability to scale. In 2015, the market reached 22.9B ($350M USD), and it will see considerable growth in the coming years. As SMB-specific applications are developed, service providers have the opportunity to meet the needs of SMBs with quality applications. Top applications include online backup, file sharing, and payroll and HR. Business Application Research Methods Internet search Trusted advisor Tech or industry news Local IT resource Existing service provider 50% 43% 38% 24% 9% Note: 45% of SMBs use multiple sources when researching business applications. Most Important Factors in Choosing Business Applications % 23% 22% 18% Business need Features and Price Customer capabilities experience 17

19 Purchasing Trial Software 15% Purchased without a free trial 85% Purchased with a free trial Purchased in a Bundle Micro Small Medium 47% 55% 66% Bundled with With bundle With bundle Hosted server Internet provider Other applications 18

20 Top Business Applications through % 23% 33% Online backup 16% 33% File sharing 13% 26% Payroll and HR 12% 26% Online accounting 9% Support and help desk 9% 21% 7% 19% VDI Online CRM % CAGR 22.9B $350M USD 57.7B $881M USD

21 The business applications market is the fastest growing market within India. Expanding at an annual rate of 36%, it will reach 57.7B ($811M USD) by In this timeframe, most applications will double their user base. Bundles will be an important part of the selling process, as almost half of SMBs buy their applications bundled with another application or service. Interestingly, as firm size increases, bundle usage also increases. Service providers should be wary of the many new entrants to this market, but well-positioned service providers will be able to take advantage of this opportunity. Overall Cloud Services Opportunity through B 23% CAGR 57.7B 50.3B 25.3B 26% CAGR 12.6B 30.8B 14% CAGR 20.8B 36% CAGR 22.9B IaaS Web presence Unified communications Business applications

22 207.4B ($3.2B USD) B ($1.6B USD) % CAGR India s cloud services market is set for impressive growth in the coming years. An improved IT infrastructure and an increased need for connectivity together generate an enormous demand for cloud services. As a result, successful service providers who offer highquality and need-specific services will be best positioned to win in this expanding market. 21

23 Learn More Odin is committed to helping our partners understand the best opportunities in the SMB cloud market. This report covers only a portion of the extensive data included in Odin SMB Cloud Insights research. Please contact SMB@odin.com with any further questions. About Odin Odin provides software that powers the cloud ecosystem, from small and local hosters to some of the world s largest telecommunications providers. By partnering with Odin, service providers gain access to industry expertise, a catalog of the most in-demand cloud applications, and the most comprehensive selection of software, including web server management, server virtualization, provisioning, and billing automation. With offices in 15 countries, Odin supports more than 10,000 service providers in delivering applications and cloud services to more than 10 million SMBs. For more information, visit follow us on Twitter, or like us on Facebook Parallels IP Holdings GmbH. All rights reserved. Odin and the Odin logo are 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. 22

24 GLOBAL HEADQUARTERS 500 SW 39th Street Suite 200 Renton, WA USA main: EMEA Willy-Brandt-Platz Munich Germany main: HostingSales.eu@odin.com APAC 3 Anson Road, #36-01 Springleaf Tower Singapore main: HostingSales.apac@odin.com For more office locations: