With doors opened to increased data protection for enterprises of all sizes, the global Disaster-Recovery-as-a-Service or DR in the cloud market is projected to lie in the high revenue-high growth quadrant, through 2018-2028, as per a recent market analysis by a study report.
High revenue growth of the global Disaster Recovery-as-a-Service market can be attributed to varying bandwidth, pricing, and scalability solutions being offered to small and medium businesses (SMBs) and smaller enterprises. Increased digitization and growing demand for Cloud and IoT, will translate into higher substantial global demand for Disaster Recovery-as-a-Service.
A higher preference among small and medium enterprises (SMEs), compared to large enterprises, is expected to have a significant impact on the Disaster Recovery-as-a-Service market, as per the report. Moreover, enterprises are also investing in hybrid models of Disaster Recovery-as-a-Service, the report reveals.
A senior research analyst says while offering the market background, “Continuous innovations for the implementation of Disaster Recovery-as-a-Service across industry verticals, increasing ransomware and cyber threats, and risk in compliances are some critical factors creating concurrent demand for Disaster Recovery-as-a-Service, globally. “Expanding at an exponential CAGR of 35.4 percent in 2019, the global Disaster Recovery-as-a-Service market is expected to increase 25.9X between 2018 and 2028, standing at a valuation of US$ 4.4 Billion through 2019”, the analyst states further.
In the wheel of fortune, the report on Disaster-Recovery-as-a-Service has placed various market segments including end-user, type of service, service provider, and vertical on different orbitals, characterizing their growth projections.
Most of the market segments fall in the growth quadrants. However, service types in the form of real-time replication services and healthcare verticals are projected to lie in the introductory quadrant.
Key Research Findings at a Glance
- High demand for recovery and backup services will result in the segment holding more than 67 percent market share, in terms of services, representing a robust yearly revenue growth.
- Deployments over cloud is expected to translate into a larger share of more than 62 percent for Cloud service providers in the Global disaster recovery-as-a-Service market. The suite will be followed by telecommunications service providers, growing at an exceptional CAGR of more than 40 percent.
- BFSI especially for e-payments applications and telecommunication and IT will witness high adoption of disaster recovery-as-a-Service considering increasing pressure for recovery and protection of valuable information within these verticals.
- Retails and consumer goods is also a rapidly emerging vertical, projected to generate US$ 768.3 Mn in 2019, through increased deployment of disaster recovery-as-a-Service.
- over larger companies in terms of deployment of disaster recovery-as-a-Service—the former expanding at an exponential CAGR of approximately 42 percent.
Regional Analysis: Study Spots Lucrative Opportunities in Developing Markets
Although North America is expected to dominate the disaster recovery-as-a-Service landscape, owing to high adoption and implementation of advanced IT software and services in the region, in conjunction with increasing cyber threats and crimes, emerging markets including China, and SEA and Others of APAC are also projected to demonstrate substantial growth opportunities.
In terms of value, the market in China is expected to increase 36.2X between 2018 and 2028. Although still in infancy, real-time replication services in China is expected to exhibit a relatively higher growth along with recovery and backup services, considering higher threats to SMEs in the region.
Expanding at 22.1X, the disaster recovery-as-a-Service marker in SEA and others of APAC also presents rewarding revenue opportunities for vendors, arising from ever-growing digitization and various tier-1 companies having strong presence across developing economies.
Enterprises have been transitioning from Disaster Recovery Service to Disaster-Recovery-as-a-Service, further enabling to relinquish the responsibility of their disaster recovery data centre/data storage to a respective service provider, thereby, making data management more efficient at reduced costs. Moreover, Disaster Recovery-as-a-Service offers flexible, secure, and scalable solutions to enterprises—ensuring stable operational processes in the event of a disaster.
An enterprise needs help in preparing system disaster recovery procedures for ERP landscape, aligned with customer’s plan for IT security and recovery. They have to Integrate these procedures in the Business Continuity Plan and make sure regular Disaster Recovery Plan (DRP) exercises are performed is a good strategy to minimize the risk of data loss.
Competitive Landscape Analysis of the Global Disaster Recovery-as-a-Service Market
- With approximately 42 percent share of the current market revenue, Tier 3, emerging companies represent a highly concentrated landscape, with wider offerings. Sum of market share of all small-sized local Disaster-Recovery-as-a-Service vendors is significantly higher than any individual Tier-1 player’s market share. The tier-3 companies include, Zerto, Veeam Software, Vox Telecom, and Datacentrics
- Tier-1, leading companies including NTT Communications, IBM Corporation, Amazon Web Services, and Microsoft Corporation hold a market share of nearly 38 percent, with key focus on product innovation strategies.
- Disaster Recovery-as-a-Service vendors falling under tier-2 category, account for roughly 20 percent of the total market share. Acronis, Sungard, and Citrix are the leading tier-2 players profiled in the report on the Disaster-Recovery-as-a-Service market. As their key differentiation strategy, the tier-2 players are anticipated to enter into strategic partnerships with various tier-1 and tier-2 companies to expand its offerings to other potential end-users along with accelerating its product developments and go-to-market initiatives.
- Besides expansion strategies, key Disaster-Recovery-as-a-Service vendors are also making continual investments in research and development with the intention of implementing innovative solutions in its solutions and services.
These insights are based on a report on Disaster Recovery-as-a-Service Market by Future Market Insights.