Infrastructure as a Service (IaaS) Market

The report "Infrastructure as a Service (IaaS) Market by Solution (Managed Hosting, Storage as a Service, DRaaS, Colocation, Network as a Service, Content Delivery, High Performance Computing as a Service), Deployment Types, End users, by verticals and Region - Global Forecast to 2020", is expected to grow from USD 15.79 Billion in 2015 to USD 56.05 Billion by 2020, at a CAGR of 29.0%.

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IaaS is a form of cloud computing relying on an underlying pool of physical computing resources, such as servers, network connections, load balancers, and bandwidth, which are provided in a virtualized environment “as a service” by the Cloud Service Providers (CSPs). Organizations are adopting IaaS solutions owing to the growing volume of business and financial data and other critical information among the businesses in various verticals, the need for reducing the burden of cost and IT administration, and need to focus more on their core operations. Moreover, the technological advancements have led to increased mobility, BYOD, and other digitalization trends in numerous sectors. Ease in deployment, scalability, and flexibility of services as well as low cost benefits are some of the factors bolstering the growth in IaaS market.

Increasing penetration of hybrid cloud will drive the IaaS market

Implementation of hybrid cloud architecture helps organizations avoid placing all their data at one place. Having all the data at one place makes organizations vulnerable to unexpected disasters. Hybrid cloud reduces the chance of data loss and threat in case of any adverse situation as compared to public cloud. Private cloud deployment is the safest mode of cloud deployment, but it is very expensive. Thus, hybrid cloud offers distinct advantages when it comes to security, confidentiality, and recovery of critical data or information and business continuity planning. It also helps the organizations reduce the expenses by providing the option of storing data either on-premise or any of the deployment modes, simultaneously. The data preserved on-premise in hybrid cloud helps in faster recovery and protects physical and virtual operating systems and applications.

IT and telecom sector is projected to showcase robust growth in the IaaS market

The IT and telecom vertical is one of the major verticals that generates huge amounts of data. Customer-focused organizations such as BFSI generating huge volume of financial and business data look at storage and security convenience for smooth business continuity. Thus, managed hosting, DRaaS, STaaS solutions provide businesses with cost effective computing and storage capabilities.

The key IaaS vendors and service providers profiled in the report include – AWS, IBM, Cisco Systems, Google Inc., VMware, Microsoft, Rackspace, Fujitsu, CSC, and Profitbricks among many others. Several key innovators have also been showcased in the study including Mindtree and Savvis.

Growing demand from increasing number of SMBs and the governments’ efforts to digitalize the economy creates remarkable potential for the IaaS market in the APAC region

The APAC region is expected to experience extensive growth opportunities in the next few years. The existence of a large working population and developing technology hubs, have expanded the competitive environment in the region. The countries such as China, Japan, and India, putting in efforts to deploy various data centers in country to increase the internet penetration in the rural areas of their economies, but also to digitalize the government sites and other processes are likely to increase the adoption of IaaS by 2020. These developments clubbed with a growing demand of enterprise level computing capabilities from massive and growing number of SMBs, signifies a tremendous growth potential for the IaaS market in the region.

MarketsandMarkets broadly segments the IaaS market by solution; by deployment type; and by user type. The study covers more than 9 industry verticals including IT & telecom, BFSI, government, healthcare, retail and e-commerce, media and entertainment, manufacturing, energy and utilities and others including education and research, hospitality, transportation and logistics.

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