A growing number of non-tech companies are looking at the current cloud adoption rates and wondering if their organization should consider joining a cloud partner program in order to resell cloud services. So are a growing number of IT consultants, IT distributors and online businesses.

Does it make sense for your business to tap into this growing market now? And just how big will it become?

Revenue from IT cloud services in the U.S. is expected to grow from $18.5 billion in 2011 to $43.2 billion in 2016, according to a recent report from International Data Corporation, a provider of market intelligence on information technology, telecommunications and consumer technology.

That’s a healthy compound annual growth rate of 18.5%.

And one of the biggest growth segments is the hosted email market. An industry analysis report by Radicati Group forecasts that by the end of 2013, over 2.4 billion mailboxes worldwide will run on a hosted email platform.

The Main Driver To Cloud Computing?
Hosted Business Email

As the trend toward cloud computing continues to grow, the popularity of hosted business email solutions like Microsoft Hosted Exchange are among the main drivers of cloud adoption for small and mid-sized businesses looking to trim IT costs without sacrificing functionality and productivity.

Professional hosted business email (such as Microsoft Hosted Exchange 2013 and 2010) are typically paid solutions with no advertising (unlike hosted consumer email solutions); they are also linked to the company’s domain name and come with a wide range of features designed to improve business productivity: shared contact, calendars, and mobile push email.

What’s driving this growing demand for hosted business email services?

1. The need to cut costs and streamline IT operations: The economic downturn has brought renewed interest in hosted business email. More and more businesses are migrating from an on-premises to a hosted email solution because it gives them tighter control over their IT budgets with predictable per user per month costs. It also improves ROI by eliminating much of the costs of running an expensive in-house infrastructure and its associated staff.

2. Increased availability of business-grade email services and applications. Unlike cloud email designed for consumers, business-grade hosted email is designed to meet specific business needs. This is especially the case with Microsoft-based hosted solutions (like Exchange), which integrate seamlessly with the other Microsoft applications most businesses are already running (whether in the cloud or on-premise). And since their interface is already familiar, migration feel like a simple upgrade to users.

3. Increased use of mobile devices in the workplace (and the growing number of devices per user) is forcing organizations to ensure that employees can access email and all office applications regardless of their location—not to mention that their data is synchronized across all devices. Cloud-based email solutions are designed to do just that.

4. Microsoft’s shift toward SaaS and cloud computing. By entering the hosted business email market, the global giant has legitimized hosted email and is driving customer migration en masse from on-premise to hosted Microsoft-based solutions such as Microsoft SharePoint, Lync and Dynamics CRM. At the same time, Microsoft has built an extensive network of reseller partners and hosting providers who offer value-added technical support for Microsoft Hosted Exchange—along with personalized customer care to their respective clienteles. In other words, the “small guys” can build a highly successful business by becoming a trusted and local provider of the world’s leading hosted business solutions.

Thinking about getting into the cloud/growing your cloud offering?

SherWeb’s partner program has already allowed over 3,000 MSPs, VARs, ISVs and IT consultants to successfully resell or refer our award-winning Microsoft hosted services and innovative in-house solutions to over 100,000 users in 50 countries. As a SherWeb partner, you’ll benefit from high-demand business solutions like Hosted Exchange 2010 and 2013, SharePoint 2010, Lync 2010 and SkyNox Online Backup, offered in industry-leading bundles and pricing tiers, along with free migration service and 24/7 live phone, chat, and email technical support. Plus the industry’s very best customer care and a partner team that’s 100% dedicated to your success.

For more information or to request a Partner Kit, contact us at: partner@sherweb.com.

*Update 17 Sep 2014: SkyNox now goes by a new name. Details

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Written by JP Mercier Employee @ SherWeb

JP is SherWeb’s community manager. He has been working for IT companies since 2010, in both the software and cloud computing industry. JP has a degree in communication and specializes in online marketing. As a good Canadian, he is (overly) polite and loves hockey.