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"It doesn't make sense for small businesses to buy servers," said Mr Zubarev. Parallels found that Australian SMEs are price sensitive, to cut a long story short suggests that providers should educate potential clients about the true cost of running in-house servers, and as well to keep basic prices low during offering other add-on services just as security and backup at extra cost.

Parallels as well sees hosted communication and collaboration as a potential growth area for Australian cloud providers, providing they keep prices low and understand what potential clients are looking for, and what will trigger a purchase.