Cloud services continue to reshape the IT market for small and medium businesses (SMBs) in Japan, with an immense array of services and applications now available to help SMBs grow, collaborate, and compete in a global marketplace. Entering its third year of SMB Cloud Insights™ reports, Parallels research shows how the Japanese market has evolved in the past year and highlights the most important opportunities for growth over the next few years.

1. Profit from the cloud
TM
2013
Japan
Parallels SMB Cloud InsightsTM
for Japan
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2. Table of Contents
Executive Summary ................................................................................1
Definitions.................................................................................................2
Infrastructure as a Service (IaaS).............................................................4
Web Presence and Web Applications......................................................6
Hosted Communication and Collaboration.............................................9
Hosted Premium Email.........................................................................9
Hosted PBX.........................................................................................10
Business Applications............................................................................ 11
Conclusion.............................................................................................. 14

3. 1
Executive Summary
Cloud services continue to reshape the IT market for small and medium
businesses (SMBs) in Japan, with an immense array of services and
applications now available to help SMBs grow, collaborate, and compete
in a global marketplace. Entering its third year of SMB Cloud Insights™
reports, Parallels research shows how the Japanese market has evolved
in the past year and highlights the most important opportunities for
growth over the next few years.
Having initially interviewed Japanese SMBs of different sizes and
industries about their cloud service consumption, plans, and attitudes
in 2011 and 2012, Parallels has refreshed this research for 2013,
conducting 600 new interviews to determine what changes have taken
place in the intervening months. Our research addressed SMBs’ cloud
service use with respect to four specific categories: infrastructure
as a service (IaaS), web presence and web applications, hosted
communication and collaboration, and online business applications (a
category also known as software as a service, or SaaS).
By combining the results of these interviews with our past research and
deep industry knowledge, we have created a broad view of the Japanese
SMB market for cloud services in 2013, including an understanding of
how the space has grown and evolved over the past year. This paper
summarizes our findings and focuses on the Japanese SMB cloud
market growth and future opportunities.
As of summer 2013, Parallels calculated the Japanese SMB market
across all categories of cloud services to be about ¥168B ($2.0B USD).
As shown in Figure 1, IaaS contributes ¥46B ($565M USD) to this
market, web presence and web applications contribute ¥45B ($550M
USD), hosted communication and collaboration (consisting of hosted
premium email and hosted PBX) adds ¥7.2B ($88M USD), and business
applications account for the remaining ¥69B ($847M USD).
Japanese SMBs report strong interest in expanding their use of cloud
services, particularly in communication and collaboration and business
applications. Over the next several years, the Japanese SMB cloud
market will experience strong growth across all cloud services, as SMBs
expand beyond traditional hosted services to consume an ever larger
number of cloud applications. Parallels predicts the Japanese SMB
market will grow by at least 15% year-over-year for the next 3 years,
reaching ¥256B ($3.1B USD)in 2016. Service providers who are able
to stay on top of SMBs’ changing cloud needs and reach these SMBs
with the right mix of services and applications will grow and profit in the
exciting years to come.
The following sections of this report examine Japanese SMBs’ use of
each of the four categories of cloud services in more detail, describing
their current use of these services and their future plans for spending.
The Japanese
SMB market
across all
categories of
cloud services
has reached
¥168B ($2.0B
USD)

4. 2
Figure 1. SMB cloud services market size and growth in Japan
(2012-2013)
Definitions
Cloud service categories
This research is focused on the cloud services that matter most
to SMBs: IaaS, web presence and web applications, hosted
communication and collaboration, and a general category we refer to as
business applications. We define each of these cloud service categories
as follows:
• Infrastructure as a service (IaaS; formerly called hosted
infrastructure in Parallels SMB Cloud Insights™). This
category includes dedicated servers, virtual private servers
(VPS), managed hosting, and utility or elastic computing. In
2013, we expanded this category to include add-on applications
and services for hosted infrastructure, such as control panels,
development platforms, LAMP stack (Linux, Apache, MySQL,
PHP), security, server backup, and SQL databases.
• Web presence and web applications.This category includes
third-party web hosting, blogging services, domain registration,
SSL and ecommerce add-ons, and site-building tools. In the
2013 research, this category expanded to include additional
high-opportunity web applications – web server backup,
content delivery networks (CDN), content management, mobile
optimization tools, search engine optimization (SEO), and web
server security and health monitoring.
• Hosted communication and collaboration. This category
consists of business-class email services, including email security,
email archiving, and mobility; and hosted phone services,
including hosted PBX.
• Business applications. This category includes ten major types
of software applications that can be accessed online—file sharing,
instant collaboration, online accounting, online backup and
storage, online CRM, payroll HR, phone conferencing, support
and help desk, virtual desktop (VDI), and web conferencing.
 Infrastructure as a service (IaaS)  Web Presence and Web Applications
 Hosted Communication & Collaboration  Business Applications
2012 2013
¥131B
($1.6B USD)
¥168B
($2.0B USD)
13%
23%
43%
32%

5. 3
For each of these cloud service areas, Parallels captured SMBs’ current
use, attitudes, future plans, and market size. This report primarily covers
the current market size and future outlook for the SMB cloud in Japan;
however a wealth of other data is also available for custom data requests.
SMB definition and segmentation
As for our definition of SMBs—also known as small and medium
enterprises, or SMEs—we follow other research and academic
organizations in defining them as companies with 1 to 250 employees.
There are around 1.8M such SMBs in Japan today. Sub-categories within
the SMB segment include:
• Micro SMBs (companies with 1-9 employees)
• Small SMBs (companies with 10-49 employees)
• Medium SMBs (companies with 50-250 employees)
This year, we did not focus our research on businesses in the Japanese
that have no employees (sole proprietor only), because these SMBs have
significantly lower adoption rates and somewhat different needs than the
larger SMB market. However, this group of small businesses should still
be considered a good market for cloud services, particularly for basic
services like web hosting and some online business applications.
Parallels further segments SMBs by their IT decision maker and the type
of cloud opportunity represented by each business (in terms of their
current or future adoption of various cloud services).
IT Decision Makers
• SMBs with no IT staff (“do-it-yourselfers”). For these SMBs,
the business owner or a senior member of the company handles
all IT purchasing decisions, as well as installation and maintenance
of IT solutions. These decision makers need to know how a cloud
service will benefit their business and their bottom line. They also
need solutions with a user interface that is simple enough to not
require detailed IT expertise. To market successfully to this group,
focus on the business benefits of cloud services, while minimizing
technical complexity.
• SMBs that hire IT consultants. IT consultants want to
know about the technical specifications of the cloud service,
its configuration and management, best practices, and other
technical advice. Having a white-label reseller offering designed for
IT consultants—one that gives them the opportunity to resell cloud
services to the SMB end customer without having to manage the
infrastructure themselves—will help reach this target audience,
as will sales and marketing strategies that target the broader IT
channel, including distributors.
• SMBs with a dedicated IT staff. For these SMBs, IT personnel
are the primary audience. While they need to know the business
benefits so they can pass them on to senior management,
they themselves are much more concerned with the technical
aspects of the solution and whether or not it fits the needs of
To better
understand
SMB behavior,
SMBs can be
segmented by
size, IT decision
maker and
opportunity
type.

6. 4
their company. Clear, detailed documentation about technical
specifications, strong support, and cutting-edge technical features
will be the key selling points for this audience.
Cloud Opportunity Type
• Cloud leapers. This category consists of SMBs that currently
are not using an in-house IT solution (that is, they have no servers,
no web server, or no PBX system) and are likely to move straight
to the cloud, “leaping over” the typical intermediate step of
purchasing in-house IT. These companies might have rudimentary
IT equipment, such as external hard drives for storage or Excel
workbooks for accounting, but they don’t have the level of in-
house infrastructure or software used by the cloud converters
(see below). The cloud leaper category also includes startups that
choose cloud services over traditional in-house IT as they start
their business.
• Cloud converters. These SMBs currently have in-house
solutions but are either moving or planning to move to hosted
services. For example, many SMBs that currently have in-house
servers may switch to hosted servers when it comes time to
upgrade their infrastructure.
• Cloud expanders. These SMBs, which are already using some
form of cloud services, represent an opportunity for upselling to
new and expanded cloud offerings. For example, an SMB who is
using web hosting would be acting as a cloud expander when they
purchase mobile optimization to complement their website.
Infrastructure as a service (IaaS)
During 2012, the Japanese SMB market for infrastructure as a service
slowed its growth somewhat over our previous years’ research, but
continued to grow in double digits. The market reached a value of
¥46B ($565M USD), a 13% increase over last year. This market size
encompasses overall hosted server use — including both basic IaaS
offerings (such as dedicated servers and virtual private servers) and add-
on services (such as security and server backup).
23% of Japanese SMBs now use a hosted server, a 4% increase over
the previous year. The growth was driven largely by micro and small
SMBs (those with under 50 employees) purchasing their first servers
from the cloud, rather than choosing to buy an in-house server. Micro
SMBs switching from in-house to hosted servers also added to the
market growth. In fact, micro SMBs grew their use of hosted servers
by 30% during 2012, a trend that points to IaaS becoming the dominant
model for small business infrastructure needs in Japan. As shown
in Figure 2, in-house infrastructure use is still more prevalent than
hosted server use across all SMB size segments. As their in-house
infrastructure ages, we expect that many of these SMBs will convert to
hosted infrastructure, fueling continued growth in this space.
Micro SMBs
grew their
use of hosted
servers by
30% during
2012, a trend
that points to
IaaS becoming
the dominant
model for
small business
infrastructure
needs in Japan.

7. 5
Figure 2. Server penetration among Japanese SMBs (2013).
Future Outlook
Moving forward, Parallels foresees continued growth in IaaS, but at a
slower rate than the last several years’ growth. Japanese SMBs are
always cautious about their spending plans, however, so the market
has potential to grow faster than our projection based on this planned
spending. Parallels estimates that the market will grow with at least a
4% compound annual growth rate (CAGR) through 2016 to become a
¥52B ($638M USD) market. Over time, IaaS is likely to plateau somewhat
– especially among small businesses – as the market saturates and
software-as-a-service draw businesses away from self-hosting their
applications. That being said, the IaaS market still has strong potential
across all SMB opportunity segments – the cloud leapers, cloud
converters, and cloud expanders.
Starting with cloud leapers, over 50% of Japanese SMBs still don’t use
servers of any type, and as these SMBs “leap” to the cloud, they will drive
solid growth in the IaaS market. Especially among micro and small SMBs
without dedicated IT staff or IT consultants, hosted servers have the
advantage of not requiring the maintenance effort or technical expertise
that an in-house server needs, making it the logical choice when they
have the need to add a server to their growing business. About 10% of
micro and small SMBs without servers say they are interested in adding
hosted servers over the next 3 years.
Cloud converters will likely contribute the most to short term IaaS
market growth, as current in-house servers need to be replaced. Over
30% percent of Japanese SMBs with in-house servers report they are
considering switching to hosted servers in the next 3 years. This cloud
converter opportunity is good among all SMB size segments, but medium
SMBs show the strongest interest in converting to hosted servers in the
near term.
Long-term, the most important contributor to market growth, however,
will be SMBs’ purchase of add-ons to complement their hosted servers.
Offering add-on applications not only can motivate more SMBs to move
to the cloud – through the promise of enhanced security, for example –
but also can increase service providers’ revenues. Today, nearly 70%
of Japanese SMBs already use some type of add-on services and
applications for their hosted servers, with security applications, webserver
control panels, and server backup among the most popular, as shown in
Figure 3.
50%
25%
100%
0%
75%
Micro Small Medium
60%
8%
 Hosted Servers  Both Hosted and In-house  In-house Servers  No Servers
59%
43%
24%
11%
22%
21%
2%
18%
Overall, 23% of .
Japanese SMBs
now use hosted
servers.
19%
13%
The most
popular server
add-ons in
Japan today
are security
applications,
webserver
control panels,
and server
backup.

8. 6
Figure 3. Japanese SMBs’ use of add-on services and applications
for IaaS (2013)
Over the next several years, Japanese SMBs with hosted servers
show extremely strong interest in adding infrastructure add-ons to
their hosted servers. Server backup, security applications, and SQL
databases will be the most popular, though Japanese SMBs have a
high willingness to buy the full range of infrastructure add-ons. 30-40%
of SMBs whose IaaS doesn’t currently include server backup, security
applications, or SQL databases plan to add one or more of these add-
ons. This opportunity is equally strong across all SMB size segments.
By promoting these add-on services to SMBs when they purchase
hosted servers and by running campaigns to existing customers, service
providers can increase the value of their transactions while still keeping
basic VPS and dedicated server prices low.
Figure 4. Fastest growing server add-ons through 2016
Web Presence and Web Applications
The Japanese web presence market gained speed in 2012, increasing
to a 23% growth rate to reach ¥45B ($550M USD). Although this
strong growth helped Japanese SMBs to close the gap between web
presence use in Japan and in other developed markets, Japan still has
a way to go before it matches the website use in countries like the US
or Germany, where website use is over 70%. The market growth again
was driven primarily by small and medium SMBs (those with more than
10 employees) creating their first website. Website use grew nearly 50%
among these two size segments in 2012, and over half of these new
websites are third-party hosted. As in our 2011-2012 research, upselling
customers with additional web applications has again been an important
source of growth.
20%
40%
60%
80%
0%
 Micro  Small  Medium Overall SMBs
Security (inc.
antivirus,
antispam)
Control Panel Server backup SQL database
37%
25% 24% 21%
11% 9%
Development
platform
LAMP stack
(Linux ,Apache,
MySQL, PHP)
Top 3
Fastest growing server add-ons through 2016
1 Server backup
2 Sercurity Applications
3 SQL Database
The Japanese
web presence
market gained
speed in 2012,
increasing to a
23% growth rate
to reach ¥45B
($550M USD).

9. 7
Of the 59% of Japanese SMBs with a company website, about 70% of
these are now third-party hosted, as shown in Figure 5. The majority of
market growth in the past year came from SMBs of all sizes adding their
first website and choosing third party web hosting. Many SMBs – again
across all size segments – also converted from in-house web servers to
third party web hosting, adding to the strong growth.
Figure 5. Website use among Japanese SMBs (2013)
Future Outlook
Looking forward, the Japanese web presence market is headed for
slower growth overall as the market for websites and web hosting
become saturated. Over the next several years, Parallels expects the
growth in web presence and web applications to grow at approximately
8% year-over-year. By 2016, this will amount to a market size of ¥57B
($701M USD).
In traditional web hosting, this growth will again come from a
combination of SMB cloud leapers, who will add their first website in the
coming years, and cloud converters, who will switch from an in-house
webserver to third-party web hosting. The cloud leaper opportunity
is strongest among medium SMBs, where over 30% of SMBs without
websites are considering adding one in the next several years. The
cloud converter opportunity is strongest among small and medium
SMBs (those SMBs with over 10 employees); over 50% of these SMBs
with self-hosted sites are considering a switch to third party web hosting
in the next three years.
Overall, the most important driver of growth in web presence, however,
will be web applications and add-ons. This year, Parallels again
asked SMBs about their current and planned use of a wide range
of web applications that can be used to secure and enhance their
web presence (see Figure 6). Use of web applications is relatively low
in Japan, even the most popular web applications only have about
10-15% of SMBs with websites using them today. These relatively
low penetration rates point to excellent opportunity still left in the web
application space, even as the web hosting market saturates. Of those
SMBs with web applications, the top current application categories
are search engine optimization, security and health monitoring, and
website backup. Of note, 35% of SMBs bought their web applications
Japan SMB web
presence market
will grow by
8% year-over-
year through
2016, reaching
a market size
of ¥57B ($701M
USD).
10%
30%
50%
40%
20%
80%
0%
60%
Micro Small Medium
38%
 Third-party Hosted  Self Hosted
38%
15%
48%
31%
59% of SMBs
have a website,
and about
70% of these
are third-party
hosted.
53%
100%
70%
90%

10. 8
bundled with their websites, making the initial web hosting transaction
an important time to sell additional add-ons to these businesses.
Figure 6. Web application use among Japanese SMBs (2013)
Like IaaS add-ons, web applications are extremely popular among
Japanese SMBs. When asked which web presence applications they’re
planning to add over the next three years, SMBs listed search engine
optimization, security and health monitoring, and ecommerce as their
top choices. All web applications, however, have strong projected
growth rates based on Japanese SMBs’ willingness to buy. This strong
opportunity exists across all SMB size segments.
Figure 7. Fastest growing website add-ons through 2016
Hosted Communication and
Collaboration
As in prior years, we focused our hosted communication and
collaboration research on two areas: hosted premium email and
hosted PBX. Although the overall market for these two services –
at approximately ¥7.2B ($88M USD) – is only a fraction of the web
presence and IaaS market sizes, it is growing much faster. Hosted
communication and collaboration was the fastest growing cloud service
in this year’s research. Currently, 8% of Japanese SMBs pay for hosted
premium email, and 3% purchase hosted PBX. Over the next few
years, we expect these two cloud services to continue to grow quickly,
more than tripling the current market size in the next 3 years to reach
approximately ¥22B ($267M USD).
 Micro  Small  Medium  Overall SMBs
10%
20%
25%
15%
5%
0% Search
engine
optimization
Security
and health
monitoring
Backup SSL
certificates
Ecommerce
solutions
Content
management
Sitebuilding
tools
Mobile
optimization
Content
delivery
network -
CDN
15%
10% 9% 9%
7% 7%
5% 5%
3%
Top 3
Fastest growing website add-ons through 2016
1 Search engine optimization
2 Security and health monitoring
3 Ecommerce capabilities

11. 9
Hosted Premium Email
Hosted premium email includes added features such as team
collaboration, shared calendars, email archiving, mobility, and security.
Hosted premium email makes up less than 10% of the overall email
market—which also includes free accounts through ISPs or providers
like Google, in-house email servers, and free hosted email—but it shows
strong growth potential across all SMB size segments.
Over the course of 2012, overall email use among SMBs grew to over
90%, including both free and paid accounts. For hosted premium email,
market growth was driven by two main groups – 1) SMBs who upgraded
to hosted premium email from their free email accounts (from an ISP or
free provider, like Google) and 2) SMBs who converted from in-house
servers to hosted premium email. Parallels noted these trends across all
SMB size segments.
Future Outlook
Moving forward, Parallels sees continued to drive strong growth in this
space across all SMB size segments. The overall market will continue
to show at least 35% growth year-over-year through 2016. Because over
90% of Japanese SMBs already use email in some form, cloud converters
and cloud expanders are the primary opportunity segments.
Among cloud converters, over 30% of SMBs are considering switching
from in-house email servers to hosted premium email. This opportunity
will be largest among small and medium SMBs, because these
companies have the highest interest in converting to hosted premium
email, as well as the most mailboxes to convert.
Another strong opportunity for hosted premium email is among the cloud
expanders. We consider SMBs that upgrade from free hosted email to
hosted premium email to be cloud expanders, even though their current
use of the cloud service is free. Parallels believes the best cloud expander
opportunity lies in upselling SMBs currently using free hosted email to
hosted premium email. Over 80% of SMBs currently using hosted email
get it for free. Service providers should be able to make this upsell easily,
since SMBs can benefit from the team collaboration aspects, “pay-per-
seat” pricing model, and enhanced security features of hosted premium
email.
Figure 8. Email use among Japanese SMBs (2013)
Although the
overall market
for these two
services – at
approximately
¥7.2B ($88M
USD) – is only
a fraction of the
web presence
and IaaS market
sizes, it is
growing much
faster. In the
next three years,
the market will
more than triple
to ¥22B ($267M
USD).
For hosted
premium email,
market growth
was driven by
two main groups
– 1) SMBs who
upgraded to
hosted premium
email from
their free email
accounts (from
an ISP or free
provider, like
Google) and
2) SMBs who
converted from
in-house servers
to hosted
premium email.
Overall, 8% of
SMBs are paying
for hosted
premium email
75%
50%
25%
100%
0%
21%
14%
85% 82%
19%
55%
38%
69%
4%
48%
6%
8%
22%
Micro Small Medium
 Hosted service provider  ISP or free email provider
 In-house server  No email

12. Hosted PBX
Although still a very small market, the hosted PBX market showed good
growth among Japanese SMBs during 2012, growing 65% to reach a
3% penetration rate. Figure 9 shows the current distribution of different
kinds of office phone systems used by Japanese SMBs.
Across all size segments, cloud leapers – those SMBs choosing hosted
PBX as their first PBX system – drove the most growth. Many SMBs
also converted from their in-house PBX systems to a hosted service,
particularly among micro SMBs.
Figure 9. Office phone use among Japanese SMBs (2013)
Future Outlook
Although hosted PBX is still emerging as a key cloud service in Japan,
opportunities in this space could be substantial for service providers
that integrate hosted PBX into their offerings and educate Japanese
SMBs about the offering’s business benefits. Because the current
base of hosted PBX users is relatively small, the primary opportunities
will be among cloud converters and cloud leapers, rather than cloud
expanders.
We still see lack of awareness, particularly among the micro and small
SMBs, as one of the main barriers to this service’s adoption. In this year’s
research, up to 20% of Japanese SMBs reported that they hadn’t heard
of hosted PBX before. Concerns about security and technical capabilities
of hosted PBX are also up among non-users, indicating misconceptions
about the way the service is delivered. Education about hosted PBX
offerings and their security and technical features will help to drive new
adoption over the next several years. Despite these barriers to adoption,
many SMBs are considering adding this service, leading to a strong
market growth rate of over 50% in future years.
Business Applications
Business applications remain Japanese SMBs’ largest category of cloud
spending in 2012 and continue to grow a rapidly, showing a 32% growth
rate. At a current market size of ¥69B ($847M USD) and continued
Lack of
awareness is
a major barrier
to hosted PBX
adoption; up
to 20% of
Japanese SMBs
still haven’t
heard of hosted
PBX.
Overall, 3% of
Japanese SMBs
are using hosted
PBX.
75%
50%
25%
100%
0%
Medium
33%
3%
3%
 Hosted/Virtual PBX  In-house PBX  Regular phone lines
Mobile phones only  No phone lines
15%
8%
52%
3%
4%
26%
11%
67%
9%
1%
14%
47%
Micro Small

13. growth on the horizon, business applications are one of the best areas
of opportunity in Japan SMB cloud market.
Japanese SMBs are using a larger range of business applications,
causing many applications categories to grow rapidly during 2012.
The current top applications, as shown in Figure 10, are file sharing,
phone conferencing, and online backup and storage. Payroll and HR
applications are also very popular among medium SMBs. We expect
substantial growth in online business applications to continue as newer
SMB-focused offerings become mainstream across all categories of
business applications.
Figure 10. Use of paid and free online business applications by
Japanese SMBs by size segment (2013)
Future Outlook
Along with communication and collabortation, the business applications
market will be the fastest growing category of cloud services in Japan
over the next several years. Parallels estimates that the market will reach
¥124B ($1.5B USD) in 2016, growing at least 21% year-over-year. As with
other cloud services, growth will take place among all types of cloud
users: cloud leapers that have never used the particular application
in-house and are trying it for the first time as an online application; cloud
converters switching from their in-house software to the cloud; and
cloud expanders increasing their use of online applications, whether
by upgrading their current application plans, adding more seats, or
expanding their use into additional application categories.
Japanese SMBs currently using cloud services are both shifting more
software use to the cloud and upgrading free applications to premium
paid accounts. As Figure 12 shows, the fastest growing applications
over the next three years will be file sharing, online backup and storage,
and instant collaboration. Japanese SMBs are more conservative with
their planned adoption of business applications than they are of IaaS or
web applications – only about 10% plan to adopt any given business
application. However, when this planned spending is aggregated across
all ten business application categories, the opportunity is substantial for
service providers focusing on the SaaS space.
At a current
market size of
¥69B ($847M
USD) and
continued
growth on
the horizon,
business
applications
are one of the
best areas of
opportunity in
Japan SMB
cloud market. .
10%
0%
20%
30%
40%
 Micro  Small  Medium Overall SMBs
Phone
conferencing
File sharing Web
conferencing
Instant
collaboration
Online CRM Virtual
desktop/
VDI
Online
backup and
storage
20%
9%
Online
accounting
Support /
Help desk
Payroll and
HR
13%
6%
2% 1%
9% 8%
27%
16%

14. 12
Figure 12. Fastest growing online applications through 2016
Conclusion
The Japanese SMB cloud services market grew 25% during the past
year, reaching ¥168B ($2.0B USD) in the summer of 2013. As the cloud
services market continues to mature in Japan, we see a shift from
traditional hosting toward new cloud services that help SMBs grow their
businesses and increase their productivity – particularly communication
and collaboration and online applications. Driven by these cloud
categories, the entire market will continue to grow solidly – adding at
least 15% year-over-year, to reach ¥256B ($3.1B USD) in 2016. As a
result, Parallels sees excellent opportunities for service providers who
are able to adapt to the changing cloud services landscape and offer
SMBs the widening range of cloud services and applications they need.
Top 3
Fastest growing online applications through 2016
1 File sharing
2 Online backup and storage
3 Instant collaboration
The business
applications
market will
be the fastest
growing
category of
cloud services
in Japan over
the next several
years. Parallels
estimates that
the market will
reach ¥124B
($1.5B USD) in
2016, growing at
least 21% year-
over-year.

15. 13
Learn more
This Parallels Market Outlook for 2013 report only covers a portion of
the extensive data included in Parallels SMB Cloud Insights™ research.
Custom analyses from our entire research database are available
for Parallels Partner community members upon request. For more
information, please reach out to your sales account manager or email us
directly at SMB@parallels.com.
• Visiting Parallels PartnerNet .For Parallels Partners, register for
Parallels PartnerNet and go to the SMB Knowledge Center for more
SMB Cloud Insights™ data analysis and go-to-market materials.
Find Parallels PartnerNet at www.parallelsnetwork.com.
• Attending an SMB Cloud Insights™ webinar. Register for
our monthly webinar series highlighting Parallels research and
teaching SMB marketing strategy, tips, and best practices to help
grow your hosting business. Go to www.parallels.com/about/
subscribe/ to sign up for webinar notifications.
• Talking to Parallels Business Consulting team.
Parallels Business Consulting delivers services designed to
accelerate time-to-revenue by 20-35%, increase profits, and
grow subscribers. We provide critical business thinking and
best practices forged from hundreds of deployments, custom
research by SMB Cloud Insights™, and go-to-market workshops.
Start a conversation with Parallels Business Consulting team.
Get in touch at accelerate@parallels.com.
Please contact SMB@parallels.com with any further questions.
About Parallels
Parallels enables service providers to rapidly launch and efficiently deliver
the most profitable cloud services by automating the delivery of the broadest
set of solutions demanded by small businesses. Founded in 1999, Parallels
is a fast-growing company with 900 employees in North America, Europe,
and Asia. For more information, please visit www.parallels.com/spp.
© 2013 Parallels IP Holdings GmbH. All rights reserved. The Parallels
logo and Parallels are registered trademarks of Parallels IP Holdings
GmbH.
No part of this publication may be reproduced, photocopied, stored on
a retrieval system, or transmitted without the express written consent of
Parallels.

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