Cloud Spending by Small and Medium-Sized Businesses (SMBs) Global Market Report 2025

The cloud spending by small and medium-sized businesses (SMBs) market size has grown exponentially in recent years. It will grow from $153.99 billion in 2024 to $190.35 billion in 2025 at a compound annual growth rate (CAGR) of 23.6%. The growth in the historic period can be attributed to rising need for business continuity and disaster recovery, increasing emphasis on remote and hybrid work environments, growing demand for cost efficiency and reduced operational expenses, expansion of customer base and market reach, and rising demand for cost-effective information technology (IT) infrastructure.

The cloud spending by small and medium-sized businesses (SMBs) market size is expected to see exponential growth in the next few years. It will grow to $439.29 billion in 2029 at a compound annual growth rate (CAGR) of 23.3%. The growth in the forecast period can be attributed to increasing focus on data protection, rising adoption of cloud-based collaboration tools, growing shift from capital expenditure to operational expenditure models, surge in demand for industry-specific cloud solutions, and expansion of cybersecurity measures and risk management. Key trends in the forecast period include advancements in artificial intelligence-based cloud services, innovations in serverless and containerization within cloud platforms, developments in hybrid and multi-cloud deployment strategies, integration of advanced analytics and business intelligence tools, and innovations in green computing and sustainable cloud infrastructure.

The growing awareness of cybersecurity threats is expected to drive the growth of cloud spending by small and medium-sized businesses (SMBs) market in the coming years. Cybersecurity threats are malicious attacks targeting digital systems, networks, and data that can disrupt organizational operations and compromise sensitive information. Awareness of these threats is rising due to the increasing frequency of attacks and their growing financial impact, encouraging organizations to adopt stronger security measures. Cloud spending by small and medium-sized businesses (SMBs) supports cybersecurity threat mitigation by providing access to advanced, scalable security tools and managed services that would otherwise be cost-prohibitive, enhancing data protection, compliance, and resilience against evolving cyber risks. For example, in November 2023, according to the Australian Signals Directorate, an Australian government agency, Australia experienced a significant rise in cyber threats during 2022-23, with nearly 94,000 cybercrime reports submitted, marking a 23 percent increase from the previous year, while the cost of cybercrime to businesses rose by 14 percent compared to the previous financial year. Therefore, the growing awareness of cybersecurity threats is driving the growth of the cloud spending by small and medium-sized businesses (SMBs) market.

The rise in remote and hybrid work is also expected to propel the growth of the cloud spending by small and medium-sized businesses (SMBs) market in the coming years. Remote and hybrid work refers to flexible work arrangements where employees perform their job duties either entirely outside a traditional office (remote) or split their time between working remotely and on-site (hybrid). These work models support increased cloud spending by small and medium-sized businesses (SMBs) as they depend on scalable, flexible, and secure digital solutions to enable collaboration, data access, and business continuity from any location. For instance, in February 2023, according to the Office for National Statistics, a UK-based government department, between September 2022 and January 2023, 16 percent of employed adults worked entirely from home, while 28 percent split their time between remote work and commuting. Overall, 44 percent of adults worked from home either fully or in a hybrid arrangement, whereas 56 percent worked exclusively at their workplace during this period. Therefore, the growth in remote and hybrid work is driving the growth of the cloud spending by small and medium-sized businesses (SMBs) market.

In June 2024, DataStrike, a US-based company offering database management, acquired MiCORE for an undisclosed amount. Through this acquisition, DataStrike aimed to expand its managed data infrastructure and cloud services capabilities, strengthening its position as a provider of database and cloud solutions for small- and mid-sized businesses (SMBs). MiCORE is a US-based company providing cloud services for small- and mid-sized businesses (SMBs).

Major players in the cloud spending by small and medium-sized businesses (SMBs) market are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, Alibaba Group Holding Limited, AT&T Inc., Tencent Holdings Limited, International Business Machines Corporation, Oracle Corporation, Salesforce Inc., SAP SE, Hewlett Packard Enterprise Company, Adobe Inc., Workday Inc., Atlassian Corporation Plc, Akamai Technologies Inc., Zoho Corporation Pvt. Ltd., Dropbox Inc., DigitalOcean Inc., Vultr Holdings LLC, Hetzner Online GmbH.

North America was the largest region in the cloud spending by small and medium-sized businesses (SMBs) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in cloud spending by small and medium-sized businesses (SMBs) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The cloud spending by small and medium-sized businesses (SMBs) market research report is one of a series of new reports that provides cloud spending by small and medium-sized businesses (SMBs) market statistics, including cloud spending by small and medium-sized businesses (SMBs) industry global market size, regional shares, competitors with the cloud spending by small and medium-sized businesses (SMBs) market share, cloud spending by small and medium-sized businesses (SMBs) market segments, market trends, and opportunities, and any further data you may need to thrive in the cloud spending by small and medium-sized businesses (SMBs) industry. This cloud spending by small and medium-sized businesses (SMBs) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Cloud spending by small and medium-sized businesses (SMBs) refers to the total investment these businesses make in cloud computing services, including infrastructure, software, storage, and platform solutions delivered over the internet. It reflects the adoption of cloud technology to support business operations, streamline processes, and reduce reliance on traditional on-premises systems. Investments in cloud services allow SMBs to improve operational efficiency, scale resources dynamically, and respond quickly to changing business requirements and market conditions.

The key types of cloud spending by SMBs are software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS). Software as a service (SaaS) is a cloud-based model where users access applications over the internet, managed by a provider, without the need for installation or maintenance. These services are deployed through various models, including public cloud, private cloud, and hybrid cloud, and are used by small and medium enterprises. They are applied for multiple purposes, including information technology (IT), enterprise operations, cloud-based information governance, and other applications, and are utilized across industry verticals such as retail and e-commerce, healthcare and life sciences, banking, financial services, and insurance (BFSI), manufacturing, IT and telecommunications, education, media and entertainment, government and public sector, and other industries.

The countries covered in the cloud spending by small and medium-sized businesses (SMBs) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cloud spending by small and medium-sized businesses (SMBs) market consists of revenues earned by entities by providing services such as cloud migration, cloud security services, cloud backup and recovery, cloud monitoring, cloud optimization, disaster recovery as a service (draas), and desktop as a service (daas). The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud spending by small and medium-sized businesses (SMBs) market also includes sales of cloud storage, virtual machines, container platforms, cloud databases, productivity software, cloud analytics tools, and cloud networking equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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