IaaS market fuelled by demand for Disaster Recovery services

IaaS market growth to be fuelled by demand for Disaster Recovery services

The Cloud Infrastructure-as-a-Service (IaaS) market is tipped to grow at an annual rate of 22.1% between 2015 and 2022, according to a new report by Transparency Market Research. From a market value of US$15.66 billion in 2014, the overall IaaS market is tipped to reach US$73.9 billion by 2022. This encompasses a myriad of cloud services including, compute, storage, data centre, application hosting and Disaster-Recovery-as-a-Service (DRaaS).

“The increasing need of DRaaS is one of the major factors which are fuelling the growth of global IaaS market,” the report said. Storage was the largest IaaS segment in 2014 because of business demand for data backup and surging IT storage requirements. However DRaaS is expected to be the fastest growing service segment to counter ‘rising incidences of downtime across the world”. Disaster Recovery is not only becoming imperative to business operations but vendors are also making DRaaS solutions more accessible especially as part of a Cloud enviroment. This combination of necessity and availability has been essential to the increasing take up of DRaaS offerings.

This flexibility has also seen IaaS gain traction across a range of enterprise types, including smaller than small – dubbed micro – enterprises due to “their low capex and low set-up requirements.” Large enterprises will continue to lead spending, but small and medium sized enterprises are expected to see the fastest growth rate over the forecast period, particularly in the Asia Pacific region, the report said.

“Asia Pacific is expected to be the fastest growing region for the market owing to the increasing number of SMBs who want to shift themselves from capex to an opex financial IT model by gradually adopting public and hybrid cloud IaaS,” the researchers said. “Lucrative growth opportunities for the key players lie in the APAC region which is expected to see higher IT investments driven by economic prosperity. Additionally, the growing number of mobile computing devices such as various smartphones and tablets is providing better accessibility to IaaS solutions, thereby fuelling the market growth.”