Public cloud market in SMBs to grow at 24.6% CAGR during 2012-2016

Infotech Lead America: The public cloud market in SMBs is expected to grow at 24.6 percent CAGR during 2012-2016.

TechNavio’s analysts said in its report — Global Public Cloud Market in Small and Medium-sized Businesses 2012-2016 — that the latency in data transfer is one of the major concerns in the global public Cloud market in SMBs.

According to the report, which is available on Research and Markets, one of the main reasons for the spurt in market growth is the increasing popularity of SaaS services among SMBs.

Public cloud services are being adopted rapidly by micro-SMBs as well. Cloud service providers cater to the needs of SMBs at a lower cost than that needed for internal provisioning of the services in order to contribute to the growth of the market during the forecast period. Concerns regarding data security could hinder the growth of this market.

The key vendors in this space are, Google, HP, IBM, Microsoft, Rackspace Hosting, and Verizon Communications. The other notable vendors mentioned in the report are AT&T, Bluelock, BMC Software, CA, Cisco, Citrix Systems, Computer Sciences, Dell, EMC, Oracle, Red Hat, Silicon Graphics International and VMware.

Many countries across the globe are witnessing the introduction of high-bandwidth communication services such as 3G and 4G. With the increased bandwidth support, advanced applications such as G-talk, Skype, and BB Messenger are being widely used by end-users. These applications are also supported on smartphones and tablets, which creates a need to implement high-speed communication networks.

“Many end-users are storing their data in the cloud infrastructure and accessing voice- and video-based applications through the cloud, which is one of the major trends in the market,” said an analyst from TechNavio’s Data Center team.

According to a recent Parks Associates report, the US SMB segment alone will register growth at a CAGR of 14 percent from 2012 to 2016, in the tech support market.

SMBs are expected to drive growth in the Indian tech support market as well, according to industry experts. SMBs will continue to invest in tech support needs related to cloud services including collaboration, CRM, data backup and storage.

Sangeeta Sudhakaran

[email protected]