The SME cloud market grew by 16% last year and is expected to exceed that when the final numbers are tallied up at the end of December as more smaller British businesses embrace hosted services.
The latest SMB Cloud Insights for the UK report from Parallels show that last year revenue hit £1.2bn and it going to grow at a rate of 20% annually hitting a market valuation of £2bn by 2015.
The report shows that more UK small businesses are making the move towards the cloud as they look to take advantage of services including hosted infrastructure, web presence, hosted comms and business applications.
Of the overall £1.2bn UK market, Parallels calculated that hosted infrastructure currently accounts for £470m, web presence services add £297m, hosted communication and collaboration contributed £41m, and business applications account for the remaining £364m.
“Our research continues to demonstrate that UK service providers who offer SMBs the right bundle of services at the right price will expand their customer base and revenues as well as enjoy the most growth," said John Zanni, vice president of service provider marketing and alliances at Parallels.
"The challenge to service providers is how to better know and understand the buying behaviours of their SMBs," he added.