The Infrastructure-as-a-Service Market Opportunity

Hosted Infrastructure (also known as infrastructure-as-a-service): This category includes dedicated servers, virtual private servers (VPS), managed hosting, and utility or elastic computing.

Hosted Infrastructure has the lion’s share of the current Cloud service market in the U.S and Globally, with a national SMB spend of approximately $4.9B in the US. This figure encompasses all types of hosted servers, including dedicated servers, VPS, and flexible computing (also known as utility, grid, or Cloud computing), as well as additional infrastructure services that SMBs use, such as backup. The estimated US market includes 2.3M hosted servers, 500K of which are VPS. With the incremental market opportunity for hosted infrastructure estimated at $7.1B and 4.8M servers, and hosted server penetration among Small Business lagging considerably behind that of Medium Business.

The opportunity is to market low-cost and easy to manage Hosted Infrastructure solutions to Small Business is a great way for service providers to take advantage of this impressive growth opportunity.

Small Medium Business continued use of in-house servers represents a significant opportunity within the hosted infrastructure segment. Among U.S. SMBs, 55% have servers, with 82% of these companies keeping at least some servers in-house. Parallels believes the largest opportunity for conversion from in-house servers is among SBs, who could benefit the most from the reduced cost and maintenance burden of hosting servers in-house. Replacing in-house servers with hosted servers represents the single largest growth opportunity for the Cloud services market.

The Australian Market is not to disimilar to the US Market and follow closely behind.

Data Information sourced from Parallels

This entry was posted on Monday, April 4th, 2011 at 2:48 PM and is filed under Strategy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “The Infrastructure-as-a-Service Market Opportunity”

  1. Anthony Banek Says:

    The Infrastructure-as-a-Service Market Opportunity

  2. Says:

    RT @anthonybanek: The Infrastructure-as-a-Service Market Opportunity

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