Cloud Backup Market

[135 Pages Report] The cloud backup market size is expected to grow from USD 1.30 billion in 2017 to USD 4.13 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 26.1% during the forecast period.

The demand for cloud backup is increasing due to the huge volume of data generation, lower costs and greater efficiency than on-premises backup, and growing adoption of SaaS. The market is expanding with the emergence of new applications and technologies such as Internet of Things (IoT), big data, Artificial Intelligence (AI), and cloud computing. The base year considered for this study is 2016, and the forecast period is 2017–2022.

Market Dynamics
Drivers

• Huge volume of data generation leading to rising adoption of cloud backup solution and services
• Lower costs and greater efficiency than on-premises backup
• Growing adoption of SaaS is driving the demand of cloud backup solution and services

Restraints

• Resistance to the adoption of cloud backup solution and services due to time consuming recovery process

Opportunities

• Growing adoption among SMEs
• High adoption rate of hybrid cloud expected to transform the cloud backup market

Challenges

• High adoption rate of hybrid cloud expected to transform the cloud backup market
• Difficulty in achieving compliance
• Rising concerns regarding data privacy and governance

Huge volume of data generation leading to rising adoption of cloud backup solution and services

Earlier, traditional backup was sufficient for organizations to backup and store limited business critical data. In the last few years, in order to save IT expenditure, employers are promoting the use of Bring Your Own Device (BYOD) which is leading to huge generation of data on a continuous basis. Mobile devices such as BlackBerry, iPhone and smartphones connect employees to the internal computing platforms to access business critical data. Also, the data generated within the organization on a daily basis is quite huge making it difficult to be managed using traditional backup. Such business critical data cannot be put at risk and needs continuous backup & on demand availability. Cloud backup enables easy management and access of data from anywhere using an internet connection as required by the organization. It enables continuous and automatic backup to the cloud which makes it easy to manage huge volumes of data. Cloud enables improved security with reduced costs which is one of the major reasons for adopting cloud backup solutions. It enables easy movement of large data sets making backup easier than traditional backup and eliminating the need of server maintenance.

• To describe and forecast the global cloud backup market on the basis of components, service providers, deployment models, organization size, verticals, and regions
• To forecast the market size of the 5 main regional segments, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
• To analyze the subsegments with respect to individual growth trends, future prospects, and contribution to the total market
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To analyze the opportunities in the market for stakeholders and provide details of competitive landscape for major players
• To profile key players and comprehensively analyze their core competencies and positioning

To track and analyze competitive developments, such as mergers and acquisitions, new product developments, and partnerships, agreements, and collaborations in the cloud backup market

The research methodology used to estimate and forecast the cloud backup market began with capturing data on key vendor revenues through secondary research, such as Cloud Computing Association, Associations of Financial Professional, and Information System Security Association. Vendor offerings were also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global cloud backup market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments. The breakdown of primary profiles is depicted in the below figure:

To know about the assumptions considered for the study, download pdf brochure

The cloud backup ecosystem comprises service providers, such as Acronis International GmbH (Switzerland), Asigra Inc. (Canada), Barracuda Networks, Inc. (US), Carbonite, Inc. (US), Code42 Software, Inc. (US), Datto, Inc. (US), Druva Software (US), International Business Machines Corporation (IBM; US), Iron Mountain Incorporated (US), Microsoft Corporation (US), Oracle Corporation (US), and Veeam Software (Switzerland). Other stakeholders of the cloud backup market include systems integrators, application designers and development service providers, and network service providers.

Major Market Developments

1. In January 2017, Carbonite acquired Double-Take Software, an affiliate of Vision Solutions, Inc. and Clearlake Capital. Through this acquisition Carbonite would enhance its suite of data protection solutions for Small and Medium-sized Businesses (SMBs) which would significantly reduce downtime.
2. In January 2017, Comarch entered into an agreement with Siminn, a leading telecom provider in Iceland. Under this agreement, Comarch would offer managed services to Siminn, to reduce OPEX and enhance its excellence in business operations. The agreement would help the company in expanding its customer base across Europe. With Comarch’s Managed Services, Siminn would reduce its OPEX and also have the opportunity to stay ahead of the competition in the cloud OSS/BSS market
3. In May 2016, Druva announced new consumption-based pricing for Druva Phoenix. This would allow enterprises to pay only for the actual storage they use. Also, it would increase the adoption of cloud-based technologies among the enterprises.

Key Target Audience for Cloud Backup Market

• Cloud backup vendors
• Cloud service providers
• Telecom service providers
• System integrators
• Cloud service providers
• Government agencies
• Consultancy firms/advisory firms
• Training and consulting service providers
• Managed service providers

 “The research study answers several questions for the stakeholders, primarily which market segments to focus in the next two to five years for prioritizing the efforts and investments.”

Critical questions which the report answers

• What are new application areas which the cloud backup companies are exploring?
• Which are the key players in the market and how intense is the competition?

Scope of the Cloud Backup Market Research Report

• Solution

• Service

• Training and Consulting
• Support and Maintenance
• System Integration

By Service Provider

• Cloud Service Provider
• Telecom and Communication Service Provider
• Managed Service Provider
• Others

By Deployment Model

• Public cloud
• Private cloud
• Hybrid cloud

By Organization Size

• Large enterprises
• Small and Medium-sized Enterprises (SMEs)

By Vertical

• Banking, Financial Services, and Insurance (BFSI)
• Consumer Goods and Retail
• Education
• Government and Public Sector
• Healthcare and Life Sciences
• Manufacturing
• Media and Entertainment
• Telecommunication and ITES
• Others

By Region

• North America
• Europe
• Asia Pacific (APAC)
• Middle East and Africa (MEA)
• Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations based on the company-specific needs. The following customization options are available for the report:

Geographic Analysis

• Further breakdown of the North American market into countries contributing 75% to the regional market size
• Further breakdown of the Latin American market into countries contributing 75% to the regional market size
• Further breakdown of the APAC market into countries contributing 75% to the regional market size
• Further breakdown of the MEA market into countries contributing 75% to the regional market size
• Further breakdown of the European market into countries contributing 75% to the regional market size

Company Information

The cloud backup market is expected to grow from USD 1.30 billion in 2017 to USD 4.13 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 26.1% during the forecast period. The demand for cloud backup is driven by many factors, such as increasing generation of huge volumes of data and lower costs and greater efficiency than on-premises backup.

Cloud backup is a SaaS based solution leveraged by enterprises to backup their business critical data in order to avoid data loss in the event of manmade or natural disaster. Enterprise data is backed up in the encrypted form to enhance security over cloud. Cloud backup solution provides various benefits such as data protection, data retention, central management & monitoring, and auto scaling. Moreover, it offers benefits of lower infrastructure costs, easy & simple deployment, and integration of cloud backup with other enterprise applications.

The cloud backup market has been segmented on the basis of components, service providers, deployment models, organization size, verticals, and regions. The services segment is expected to grow at the highest CAGR during the forecast period and the training and consulting services segment is estimated to have the largest market size in 2017 in the cloud backup market. Cloud backup offers capabilities such as data retention, data protection, monitoring and reporting, and centralized management. Adoption of cloud backup services among the enterprises has increased due to its benefits, such as improved scalability, low infrastructure cost, faster deployments, improved productivity and performance, and decrease in business downtime and losses.

The Asia-Pacific (APAC) region is projected to grow at the highest CAGR during the forecast period in the cloud backup market. There is huge potential in this region for cloud adoption by enterprises which can be addressed to create better business opportunities. The increasing trend towards cloud-based solutions would give rise to the growth of cloud backup market in this region. Moreover, the increasing adoption of cloud backup solutions in this region is due to the economic outlook of Asia which seems to be positive for enterprises and the tendency of cloud backup solutions to improve the operational issues.

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Solutions

The rising adoption of cloud-based technologies and need for management of huge data sets among enterprises has led to the adoption of cloud backup solution. Organizations are deploying cloud backup solution to overcome the loopholes of traditional cloud backup such as slow & expensive customizations, tedious backup process, and need for a reliable server, large & robust local storage. The adoption of cloud backup solution has increased due to various benefits such as simple management and monitoring, real-time backup & recovery, simple integration of cloud backup with enterprise’s other applications, data deduplication, and customer support. Also, cloud backup provides important features of improved recovery, auto scalability, lesser backup time, reliability and lower costs.

Services
Training and Consulting

The consulting services play an important role for the enterprises to choose the most suitable and possible solutions and services depending upon the requirement of their businesses and end users. This service helps in educating enterprises about the strategic transformation, business assessment, solution assessment, return on investment, and knowledge workshop. On the other hand, training services aim at providing various education programs to mitigate the knowledge gaps. Several companies actively provide online training to the end users with the help of user manuals, blogs, and video instruction and help forums.

Support and Maintenance

The support and maintenance services address technical queries and delivers cost-effective support which enables improved business performance. These services also offer technical support, repair and exchange services, field maintenance, and proactive services. The vendors offering support and maintenance services focus on improving the network performance, reducing the capital expenditure and operational expenditure, and ensuring end-to-end delivery and multivendor support.

System Integration

System integration services help in solving complex problems and assures of cost-efficient business processes to produce a flexible environment that can fulfil performance, security, and availability. It provides facilities and frameworks for the integration of various platforms with third-party environments. The installation and integration services include assistance in deploying backup services within an organization. These services encompass the capabilities of planning and implementation.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for cloud backup?

Resistance to the adoption of cloud backup solution and services due to time consuming recovery process. Organizations implementing cloud backup can leverage various benefits such as scalability, flexibility, accessibility and more. But recovering the data backed up on the cloud is a major issue faced by organizations. The recovery process of large data sets is very time consuming which can lead to huge losses. Organizations expect faster recovery of data which becomes very time consuming and complex if data sets are huge in size. For some industries such as financial institutions, media companies, and entertainment companies the recovery time is expected to be as shorter as possible. According to a survey, the minimum average recovery time for organizations is 2-3 days depending on the volume of data and recovery speed. This might affect the business activities to a large extent. Faster recovery time is a must for organizations to maintain a competitive position in the market. The need to incorporate an efficient recovery process is as important as incorporating an efficient cloud backup solution.

The major vendors providing cloud backup are Acronis International GmbH (Switzerland), Asigra Inc. (Canada), Barracuda Networks, Inc. (US), Carbonite, Inc. (US), Code42 Software, Inc. (US), Datto, Inc. (US), Druva Software (US), International Business Machines Corporation (IBM; US), Iron Mountain Incorporated (US), Microsoft Corporation (US), Oracle Corporation (US), and Veeam Software (Switzerland). These players have adopted various strategies, such as new product developments, mergers and acquisitions, collaborations, and partnerships, to expand their presence in the global cloud backup market.

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