The global disaster recovery as a service (DRaaS) market was valued at over USD 3 billion in 2016 and is expected to surpass USD 16 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on disaster recovery as a service for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the disaster recovery as a service market during the forecast period. Some of the top vendors listed in this industry analysis include IBM, NTT Com, SunGard AS, RackSpace, and Microsoft.
In terms of geographical analysis, the Americas are the largest shareholder in the global market, with a market share of around 46%. Increasing demand for DRaaS from SMEs was very high in 2016, and it accounted for almost 23% of the total regional demand.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The increasing adoption of server virtualization minimizes the recovery time and reduces procurement cost. Suppliers in the global market are adopting these virtual servers as they can help deploy computing resources with greater flexibility and reduced chances of system downtimes. It was also estimated that in 2015, around 65% to 75% of server workload was transferred to virtual servers.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Demand for cost-effective services
The growing demand for cost-effective solutions is driven by the companies that are focusing on reducing their IT budgets and cap the growth of IT infrastructure and OPEX expenses. The use of DRaaS will allow companies to reduce its CAPEX as it eliminates physical server costs and helps save on downtime costs. For instance, over the last five years, average downtime costs across the industry were in the range of USD 7,000 to USD 9,000 per minute.
Stringent disaster recovery regulations
The implementation of stringent regulations by government bodies across the globe is to increase the demand for disaster recovery services by various industries. Regulatory standards such as HIPPA and PCI DSS in the US mandate organizations to protect customers’ critical and sensitive data from data loss. The implementation of these regulations encourages sectors such as healthcare and BFSI to have standard recovery options available that protect the companies from the loss of valuable consumer data.
Ease of testing DRaaS over traditional DR
The inexpensive testing options drive the demand for effective DRaaS solutions in terms of labor and capital that are being offered by various vendors in the market. The service providers allow buyers to simultaneously test entire or specific parts of the infrastructure that also support traditional recovery procedures in a virtual recovery test to save both time and resources.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Disaster Recovery as a Service – Procurement Market Intelligence Report 2017-2021.’
