Skip to main content

Cloud Computing Service Usage is Growing with SMBs

It has always been predicted that small business expenditures on wireless communication services would someday exceed that of wireline voice communication.

That day will happen in 2012 -- as wireless service offerings becomes the largest category of telecommunications spending for small businesses, according to the latest market study by In-Stat.

Wireline data spending and cloud computing services round out the four high-growth spending categories.

"Connectivity has become the life blood of business efforts, but it is particularly crucial to small businesses as many operate without a brick-and-mortar presence to customers," says Greg Potter at In-Stat.

One can already see the strength of wireless in the 5-9 and 10-19 employee sub-segments. It is the 20-99 sub-segment, however, that will maintain the dominance of wireline voice through the end of this year.

Additional insights from the latest market study include:
  • Infrastructure as a service (IaaS) is set to grow 190 percent from 2010 to 2015.
  • Overall, cloud computing services are the largest growth engines for small business telecom spending.
  • Traditional TDM services are set to decline 15 percent from 2010 to 2015, a loss of over $1 billion.
  • Retail trade, along with the hospitality and food vertical will account for over $11.5 billion in spending in 2010.
  • The 20-99 employee size portion of the small business segment accounts for over half of all spending in small businesses (5-99 employees).

Popular posts from this blog

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without