XaaS: Key market research findings
- The shift from CAPEX to OPEX drives the market
- STaaS is the predominant segment of the XaaS market
- Key vendors—AWS, Cisco, Google, IBM, and Microsoft
The market research analysts at Technavio estimate the global XaaS market to grow at a CAGR of over 38% between 2016 and 2020. The shift from the capital expenditure (CAPEX) model to an operational expenditure (OPEX) model to gain cost efficiencies is the primary driver for the market. The anything-as-a-service (XaaS) model shifts the risk and resource requirements associated with operation, backups, updates, and infrastructure maintenance from the internal IT department to vendors or service providers. At present, the Americas dominates the global XaaS market by accounting for over 49% of the overall market share. The effort to develop and maintain cost-effective infrastructure and boost the flexibility of the system and the increased adoption of cloud services in healthcare, telecom, and BFSI sectors are expected to drive the market further in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the XaaS segments by service areas.
“The increase in the adoption of monitoring-as-a-service (MaaS) is the latest trend in the XaaS market across the world. Monitoring services provide a comprehensive insight on the current and future business needs, ensure efficient functioning across departments at all times and provide a single, unified interface to track all resources that the business relies on, irrespective of the system running on the cloud or on premises. MaaS serves as a scalable platform for efficient monitoring and management of all IT elements as well as assets in cloud-based environments,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
In 2015, the global XaaS market was dominated by the storage-as-a-service (STaaS) segment by occupying almost 33% of the market share. STaaS is a business model in which a third-party rents space in its storage infrastructure to store their business data on a subscription basis. This can considerably reduce the data storage costs of enterprises, improve efficiency, and ensure high availability through enhanced disaster recovery facilities. The benefits from STaaS are more for small and medium-sized enterprises (SMEs) as opposed large enterprises.
The most prominent vendors in the global XaaS market include AWS, Cisco, Google, IBM, and Microsoft. This market is highly fragmented and dominated by numerous international players. Vendors in the market are focusing on increasing their profit margins by providing extended services, which include STaaS, SECaaS, MaaS, DRaaS, DBaaS, DaaS, NaaS, UCaaS, BPaaS, BaaS, and others integrated with mobile, and web services. The level of competition in the market is expected to intensify with several cloud-service providers entering acquisitions and partnerships to increase their market reach.
A more detailed analysis is available in the Technavio report, Global XaaS Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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