Published On: Sep 13, 2016
The global disaster recovery as a service (DRaaS) market is currently led by mid-sized companies accounting for over 56% of the market in 2013. Mid-sized companies are expected to continue dominating the market through the next few years, states Transparency Market Research (TMR) in a new study. Considering the scale of business they conduct annually, strategies adopted by large companies have a profound impact on the overall market.
DRaaS solutions are available at competitive prices as established and local companies alike compete to gain edge in the market. This connote the market’s fragmented vendor landscape. Companies such as NTT Communications Corporation, Century Link, SunGard Data Systems, IBM Corporation, and VMWare, Inc. are demonstrating a stronghold in the market.
The global DRaaS market stood at US$621.3 mn in 2013. Exhibiting a robust CAGR of 36% between 2014 and 2022, the market is expected to reach US$10.52 bn by the end of 2022. Regionally, North America emerged dominant, accounting for over 36.79% in 2013. DRaaS solutions have found application across segments such as telecommunication, banking and financial institutions, manufacturing, government and public sector, and ecommerce and retail. Of these, the banking and financial institutions segment led the market with a share of 33.94% in 2013.
Awareness Regarding Benefits of DRaaS Over Traditional DR Solutions to Fuel Demand for Former
In the last couple of years, the demand for DRaaS solutions has significantly increased due to the myriad benefits they offer. DRaaS eliminates the pre-requisites commonly required for the deployment of traditional disaster recovery (DR) methods. The technology helps customers mitigate problems associated with synchronization. Besides these factors, DRaaS offers greater flexibility, cost-effectiveness, faster recovery, and are automated and simpler to test. “As consumers become aware about the benefits offered by DRaaS over traditional DR solutions, the demand for the former is poised to increase considerably in the forthcoming years,” said a lead TMR analyst.
Furthermore, the rapid proliferation of small and medium enterprises will create lucrative sales opportunities for the market as well. With enterprises leaving no stones unturned to emerge at the fore, irrespective of their size or location, accelerating spending in the IT sector is likely. This is expected to give significant impetus to the global DRaaS market.
Compliance Concerns between DRaaS Vendors and Enterprises Could Limit Market’s Growth
Data protection is a common concern faced by organizations across the globe. Theft or manipulation of data, breach of privacy, and deletion of data are some of the primary concerns still persisting among enterprises, prompting them to implement DRaaS solutions. Besides these, various compliance issues exist between DRaaS vendors and enterprises. “The proposition offered by DRaaS vendors might not cater to the requirements of enterprises. It is thus upon enterprises to understand offerings of DRaaS solutions and bridge the gaps if there are any,” observes TMR report’s author.
The complexity in deploying DRaaS solutions and unwillingness of DRaaS providers to compensate or negotiate SLA penalties also create bottlenecks for the market. Furthermore, certain applications of DRaaS are still not compatible in cloud environment. This poses a significant challenge to the DRaaS solution providers.
DRaaS Vendors to Witness Rising Opportunities in Emerging Economies
The DRaaS market is expected to gain significantly from the increasing investments and economic growth in emerging nations. Markets such as China, India, and Southeast Asian countries are projected to emerge as new economic destinations, inviting businesses from around the world for investment in diverse industries. Strategies adopted by government to ensure hindrance-free economic development also favor a peaceful investment environment. These factors are considered conducive to the growth of the global DRaaS market.
This review is based on a review published by TMR, titled “Disaster Recovery as a Service (DRaaS) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2022.”
The report segments the global DRaaS market as:
DRaaS Market, by Deployment Model
- To Cloud DRaaS
- In Cloud DRaaS
- From Cloud DRaaS
DRaaS Market, by Product
DRaaS Market, by Company Size
- Small Companies
- Mid-sized Companies
- Large Companies
DRaaS Market, by Application Sector
- Banking and Financial Institutions (BFSI)
- Government and Public Sector
- Telecommunication Sector
- Manufacturing Sector
DRaaS Market, by Geography
- North America
- Asia Pacific
- Middle East and Africa
- Latin America
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