IaaS market worth $56.05 billion by 2020

PUNE, INDIA: According to a new market research report, "Infrastructure as a Service (IaaS) Market by Solution, Deployment Types, End Users, Verticals and Region-Global Forecast to 2020," published by MarketsandMarkets, is expected to grow from $15.79 billion in 2015 to $56.05 billion by 2020, at a CAGR of 29 percent.

The solutions comprise managed hosting, storage-as-a-service, DRaaS, co-location, network-as-a-service, content delivery and high performance computing-as-a-service.

Organizations are adopting IaaS 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 like mobility, BYOD and digitization have led to increased adoption of IaaS, the report said.

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, the survey report said.

Among the verticals, the IT and telecom segment generate 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.

On the other hand, growing demand from increasing number of SMBs and the governments' efforts to digitize 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 has expanded the competitive environment in the region. The countries such as China, Japan, and India, putting in efforts to deploy data centers to increase Internet penetration in the rural areas, digitize the government sites and other processes; these are likely to increase the adoption of IaaS by 2020.