Burgeoning Cloud Infrastructure Services Market
There has been a rising demand for reducing IT burden and lowering costs of infrastructure management among organizations, especially the Small Medium Businesses (SMBs).
This very demand has led to the rise of Infrastructure as a Service (IaaS), as a means to effective IT management and deployment of enterprise-level computing capabilities.
Several additional factors such as scalability, flexibility, agility and faster implementation are also providing an impetus to the market growth.
Considerations Influencing the High Spending on IaaS
Certain data security limitations in the public cloud and the high costs involved in the private cloud model have led to the increasing adoption of hybrid cloud by many organizations. This, in turn, has resulted in the rise of adoption of IaaS solutions.
Increasing digitalization, advancements in technology and the rising demand for virtualization, storage and disaster recovery have also contributed to the high spending on IaaS by organizations.
Market Share by Region
At the global level, the overall IaaS market is expected to grow at a CAGR of 29 percent to USD 56.05 billion by 2020, with North America holding the majority share.
The APAC market is forecast to grow at the highest rate with a CAGR of 35.8 percent driven by the increasing adoption in India, China and Australia.
In the Middle East, the market size is likely to expand by over three times from the present USD 2.66 billion to reach USD 8.79 billion by 2022. While Qatar will have the largest market adoption, other countries including Kuwait, Bahrain, Egypt, Turkey, Oman, Israel and Iran will also experience a tremendous growth. Cloud & Analytics and the increasing usage of cloud-dependent technologies such as IoT and BYOD are expected to contribute to the demand.
Growth Across Industry Verticals
BFSI along with IT, Telecom and Healthcare account for the largest market share by industry. These are followed by other high growth sectors such as government, energy, utilities, retail and e-commerce.