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The cloud computing metaphor will radically change the way the world's 148 million small businesses buy and consume ICT - but to deliver the maximum benefits, a whole layer of service providers will be needed to compile tailor-made service bundles as a few large cloud providers offering vanilla solutions won't meet SMB's needs.

Birger Steen joined virtualisation niche player Parallels in September last year from Microsoft, and was appointed CEO of the organisation in February 2011. On a visit to Sydney this week Mr Steen said that the arrival of Office 365 - Microsoft's cloud version of Office - from late June would help unleash demand for software sold as a service among the SMB end of the market.

But he warned; 'I think many of the big players are overoptimistic that the channel will be replaced by direct sales.' Instead Mr Steen predicted there will be a renaissance for the channel if companies are able to provide online services that bring together a raft of their own and third party services into a single solution under one billing mechanism for small businesses.

Parallels has just sold systems intended to allow that level of control to local service provider UberGlobal Enterprise.

Parallels was founded in Singapore by graduates from the Moscow Institute of Science and has since carved itself a position in the 'niche players' part of the server virtualisation space according to analyst, Gartner. Mr Steen explained that the company's main product set has three elements - a virtualisation platform; control panels to manage virtualised environments; and the automation and billing tools that allow service providers to orchestrate bundles of services from multiple sources for individual users.

Unlike many virtualisation tools which introduce a hypervisor level, Parallels virtualises at the operating system level. According to Mr Steen this means that about 10 times as many users can access the virtualised environment as might otherwise be expected.

However he acknowledged that; 'The price you pay though is that on any server box you can only support one operating system.'

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Beverley Head

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Beverley Head is a Sydney-based freelance writer who specialises in exploring how and why technology changes everything - society, business, government, education, health. Beverley started writing about the business of technology in London in 1983 before moving to Australia in 1986. She was the technology editor of the Financial Review for almost a decade, and then became the newspaper's features editor before embarking on a freelance career, during which time she has written on a broad array of technology related topics for the Sydney Morning Herald, Age, Boss, BRW, Banking Day, Campus Review, Education Review, Insite and Government Technology Review. Beverley holds a degree in Metallurgy and the Science of Materials from Oxford University and a deep affection for things which are shaken not stirred.

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