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Cloud industry looks to SMBs for near-term growth

September 20, 2011 by  

Web HostingLONDON, UK – Following a survey of global cloud providers, OnApp reports that 49 per cent expect the small business sector to drive take-up of cloud services in the next 12 months. A total of 27 per cent expect the enterprise sector to be their primary source of growth, while just 18 per cent see consumers as their greatest opportunity. The results are taken from an independent survey of cloud service providers commissioned by OnApp, a leading provider of software for the hosting industry.

OnApp software powers over half of all public clouds globally. It commissioned the survey to assess the hosting industry’s expectations for the cloud, and its view of the challenges it faces provisioning and selling hosted cloud services. The survey found that the most common reasons SMBs adopt cloud computing are the ability it gives them to scale their IT services on demand; being able to pay just for the computing resources they use; the lower cost overall of cloud services; and not having to run their own IT infrastructure.


The study also showed that the strongest uptake of cloud services by businesses is anticipated from web and application developers, with 67 per cent of cloud providers reporting this as the segment expected to drive the greatest growth. According to respondents already offering hosted cloud services, 42 per cent expected to see growth from the broader IT sector, 39 per cent from financial services and 30 per cent from retail customers.

OnApp’s CEO, Ditlev Bredahl, says, “Based on cloud adoption rates, our survey shows that cloud computing is most accessible to technical users right now. Adoption is being driven by small and medium sized businesses focused on application and web development. This makes sense, since sandboxed development, web development and testing are very well suited to a cloud environment. It’s easy to control costs during development, and as load increases. You can spin up a virtual machine, even if it’s just for an hour or two, because you only need to pay for the cloud as you use it.”
“As more cloud providers enter the market we’re seeing a broader range of industries beginning to take advantage of hosted cloud services. While consumers did not rank highly as a focus area in the survey, they are almost certainly using applications and web sites that are hosted on clouds,” he adds.

About OnApp
OnApp is a leading provider of software for the hosting industry. Founded in July 2010, OnApp software is now used by hundreds of hosts around the world. OnApp software products include OnApp Cloud, the only cloud management software designed for hosts, and OnApp CDN, a revolutionary new approach to content delivery for the hosting industry. OnApp has 80 staff across the EU, US and Asia-Pacific, and can be found online at www.onapp.com.

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