The Global Market for DRaaS is Projected to Reach US$6.4 Billion by 2020

Rise of Digital Data as Vital Corporate Assets Spurs the Global Disaster Recovery as a Service (DRaaS) Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Disaster Recovery as a Service (DRaaS) market. The global market for DRaaS is projected to reach US$6.4 billion by 2020, driven by the need to preserve digital assets in this information driven world.

Disaster mitigation and preparedness is of vital importance, since information in the modern data driven world is like any other corporate asset that has financial value. Digital information has emerged into one of the most expensive and valuable asset for any company, accounting for over 50% of the total value of businesses, exceeding the cost of IT hardware and software resources. The business impact in the event of a breach in information confidentiality, integrity or availability can be immense for companies. Loss of business data and information can lead to loss of customers, damage to corporate reputation and brand, inability to resume normal business processes, finally culminating in bankruptcy. The traditional disaster recovery model is increasingly becoming unsustainable, both from an operational and financial point of view, given the new financial and IT realities. Businesses currently operate in a market environment that is tough, cut-throat and unforgiving of operational inefficiencies, lack of innovation, and slow market responsiveness. As traditional resource-intensive and expensive IT business models crumble, cloud based disaster recovery models are emerging to help companies successfully traverse the shifting market and business terrain.

Key benefits of Disaster Recovery as a Service (DRaaS) driving its adoption worldwide include lower costs, CAPEX and complexity; faster deployment; 100% recovery in as less a time frame as possible; ability to recover even applications and run IT systems in the cloud; high security and resilience; and compliance to PCI, HIPAA, and SOX regulations. In light of the widely reported natural disasters in recent years, enterprise perception about cloud based disaster recovery at the corporate board level has evolved from that of an ‘option’ to that of a ‘necessity’. The market is forecast to benefit from the growing investments in disruptive cloud technologies. With the recession breaking down institutional rigidity and forcing companies to adopt fundamentally different approaches to value creation, poised to benefit is DRaaS. As a disruptive form of cloud computing, DRaaS in the current changing social, political, and technological scenario, is more than just recovery, it is migration to a platform that offers long-term sustainability.   

Major factors expected to spur growth in the DRaaS market include rising preference for commoditized IT services to run businesses; evolution of cloud computing into specialized clouds; promised emergence of cloud exchanges and the ensuing boost to customer confidence in the DRaaS cloud service model; growing awareness over the true cost of IT outages; increased adoption of virtualization technologies; mainstream use of big data applications; growing need for BYOD disaster recovery; and legislation of stringent disaster recovery regulations worldwide. 

As stated by the new market research report on Disaster Recovery as a Service (DRaaS), the United States represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 42.3% over the analysis period. The growth in the region is led by the rapid rise in business investments in developing Asian countries as a result of the local governments’ active encouragement of deregulation, liberalization, privatization and foreign direct investments (FDI) in the business sector. Other factors spurring growth in the region include rapid development of Internet infrastructure, and mushrooming of new business establishments especially SMBs which are supported by FDI induced licensing of intellectual property, influx of business capital, cross-border transfer of technologies, and exposure to organizational technologies and management skills.  

Major players covered in the report include Acronis International GmbH, Acxiom Corporation, Amazon Web Services Inc., arcserve, Axcient Inc., Cisco Systems Inc., Columbus Business Solutions, Databarracks Ltd., DataGardens Inc., Geminare Incorporated, Hewlett-Packard Development Company L.P., iland, International Business Machines Corp., Microsoft Corporation, Netmagic Solutions Private Limited, Peak 10 Inc., Persistent Systems Ltd., Phoenix IT Group PLC, QuorumLabs Inc., Seagate Technology LLC, ServerCentral Inc., SunGard Availability Services Ltd, Verizon Enterprise Solutions, VMWare Inc., Windstream Communications, Zetta Inc.

The research report titled “Disaster Recovery as a Service (DRaaS): A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of industry trends, growth drivers, market share, market size, product launches, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, and Rest of Europe), Asia-Pacific, Latin America, and Rest of World. End-use sectors analyzed for the global market include Government & Education, Manufacturing, Medical, Banking, Financial Services, and Insurance, and Others (Includes Web and E-Commerce among Others). The global DRaaS market is further analyzed by Storage Types: Less Than 1 TB, and 1 TB & More.

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