Peachtree 2015 Annual Report Download - page 16

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Understanding our market
Small & Medium Businesses are the lifeblood of the global economy and make
up an estimated 99% of all businesses. They have led the way in terms of job creation
in recent times and are a key element of the global economic recovery.
* Market analysis performed by IDC for our top ten geographies and for the end user market ofbusinesses in the 0 to 1,999 employee range.
CURRENT ADDRESSED MARKET
Oneinten of the 72 million Small & Medium Businesses in our markets
uses a purchased business management application for either
Accounting, Payroll & HR, Payments, or a full suite of business
management solutions.*
Most soware packages are eitherinstalled and hosted locally on
customer hardware (“on-premise deployed”) or hosted on a public server
and consumed via a web-browser (“cloud deployed”). Cloud adoption in
the current addressed market is not uniform between countries, with
the US showing the highest prevalence of cloudadoption whilst other
country marketsare less mature.
WHITE SPACE OPPORTUNITY
Most Small& Medium Businessesuse alternative means of managing
their records, such as pen and paper, or spreadsheets; these businesses
represent the white space opportunity.
Cloud applications are key to reaching this white space, allowing the
consumer to purchase instantly via the internet, without installation,
via a standard browser and with easy configuration.
GROWING THE ADDRESSED MARKET
IDC forecaststhat cloud spending willgrow at a rate of c.17% per annum
to 2017, however this growth is largely aributable to expansion in the
market rather than displacement of traditional soware spending,
which is expected to stay broadly flat.
Analysis indicates that both forms of deployment will remain material
components of the overall market for the foreseeable future.
We are commied to ourthree million customers and will continue to
support them, however they choose to deploy their soware,by investing
in smart technology for both cloud and on-premise deployment.
Growth in public cloud spend year on year*
+17%
Population of Small & Medium Businesses
x 1m
Onein 10 – adopting packaged solutions
Nine in 10 – the white space opportunity
14 The Sage Group plc | Annual Report & Accounts 2015
Our market