In a recent interview with Micheal Dell, the host of a weekly Business Review TV show asked, “In this age of the cloud, will PCs just go-away?”. His answer, “Not anytime soon”. What he also said is that Dell is focusing on four main areas related to their business. Consumer, SMB, Public and Large Enterprise. While the Large Enterprise contributes 29% to their top line, Dell also knows how important the SMB is. You see, of the $61.5 Billion Dell made in 2011, $14.76 Billion was from Small and Mid Sized Businesses.
According to Dell, IT as a Service is growing by leaps and bounds. They focused efforts in 2011 on Health Care and now claim to be the number one provider of Health Care based IT Services. A pretty tall claim when there are huge monoliths like Cerner and McKesson in the hosted Health Care services today. Any way you slice it, Dell is definitely focused on new services from the Cloud as they build their business in 2012. Given their success in Health Care and having a good portion of their business in SMB, one can imagine they might have a plan for Cloud based IT services to the SMB in ’12.
Microsoft is yet to publish their 2011 SMB survey for hosted services. But in their 2010 survey, 29% of all SMBs surveyed said they use some kind of Cloud Service today, 36% said they intended to use three or more services and by 2013 46% said they will adopt Cloud as their IT service model. We at Citrix believe DaaS will be a large part of this business. By the way I’m not talking about Desktops as an Infrastructure (which may be the biggest ruse of the decade). I’m talking about seamless applications delivered via a cost effective desktop complete with application provisioning, application integration and the hosting of these apps to create a desktop. The real Desktop as a Service model.
So if 24% of Dell’s $61 billion dollar business is SMB and 46% said they will adopt cloud services (inclusive of DaaS), the addressable market based on Dell revenue alone is over six and a half billion dollars. Should Cloud Hosting Providers focus on SMB?
In a word, YES.