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

AI Supercycle: Server Market Growth Surge

The worldwide server market has entered a new phase defined almost entirely by artificial intelligence (AI) infrastructure economics rather than traditional enterprise refresh cycles.   The latest market data shows robust growth and a structural shift in where value is created, who captures it, and which architectures are setting the pace for the next decade. IDC reports that worldwide server revenue reached a record $112.4 billion in the third quarter of 2025, representing a striking 61 percent year-over-year increase compared to the same quarter in 2024. For context, this means the market is adding tens of billions of dollars in incremental quarterly spend, driven overwhelmingly by AI and accelerated computing requirements.  IT Server Market Development Over the first three quarters of 2025, server revenue has already reached $314.2 billion, meaning the market has nearly doubled in size compared to 2024, underscoring how AI buildouts have compressed several years of exp...