Global IT Hosting Industry
The global information technology hosting industry is involved in the management of technology applications and IT systems. Companies use IT hosting services to cut costs, improve infrastructure flexibility, boost service levels and free up time to concentrate on their core business activities.
Key Segments
- Research from Global Industry Analysts estimates the global cloud computing service market will be worth around $127 billion by 2017. The cloud computing sector is expected to witness rapid expansion as businesses seek cost-effective solutions and focus more on productivity. Cloud computing service providers can facilitate corporate computing demands using public, private and hybrid clouds. Over coming years, the companies generating the greatest demand for cloud services will likely be those with the pressure of providing constant product differentiation. Industry performance will also be fuelled by the corporate need to ensure business continuity. As traditional in-house data backup infrastructure is now seen as outdated, most businesses are eager to invest in securing their data to protect it from theft, system failures, floods, fire and vandalism.
- Mobile cloud computing continues to gain ground with consumers and businesses, prizing mobility as a key factor in all web and computer-related activities. Visiongain predicts the global mobile cloud sector will be worth more than $45 billion by 2016. Industry players continue to introduce increasingly complex and secure products on the market. Mobile network operators are also playing an important role in developing and using cloud opportunities.
- The world data loss prevention market is expected to witness almost 18% yearly growth between 2011 and 2015, according to research from TechNavio. Industry performance will be fuelled by the convergence of multiple solutions. Demand for SaaS-based DLP solutions has been rising, though lack of DLP solutions as a separate technology may become an obstacle to market growth. Leading industry players operating in this market include Symantec, McAfee, EMC and CA Technologies.
- The platform-as-a-service (PaaS) market is expected to record almost 70% growth over the four-year period ending 2015, reports TechNavio. Market growth will be driven by demand for quicker responses to evolving business needs. The PaaS sector has also seen greater concentration on private data protection in the cloud. Data security concerns may prove an obstacle to industry performance. Leading vendors in this market include Microsoft, IBM, Amazon.com and Salesforce.com.
- The world infrastructure-as-a-service (IaaS) market is forecast to witness nearly 48% growth between 2011 and 2015, according to research from TechNavio. Industry performance is fuelled by the need to cut cost of ownership. Security features of cloud IaaS solutions have been playing an increasingly important role.
Regional Market Share
- The EU managed hosting service industry is expected to expand by 20% over the four-year period ending 2015, reports TechNavio. Growth in this sector is being fuelled by greater efficiency through service-level agreements and consolidation of enterprise networks. Leading vendors currently operating in the EU managed hosting service market include NTT Europe Online, Savvis, Rackspace Hosting and Attenda.
- The Asia-Pacific data loss prevention market is forecast to witness more than 57% yearly growth between 2011 and 2015. Important names dominating this regional data loss prevention market include Symantec, Trend Micro and McAfee. TechNavio cites the convergence of multiple security solutions as one of the main factors fueling market growth, along with integration of DLP solutions with other security offerings.
- Growth in India’s data center service market is being driven by rising demand for data outsourcing. TechNavio predicts the market will expand by 22% yearly between 2010 and 2014. A trend marked toward green data center equipment has been witnessed in recent years, though lack of management expertise to deal with the data centers may become an obstacle to market growth. Vendors that currently loom large in India’s data center service market include NetMagic Solutions, Reliance Communications, Bharti Airtel and Tata Communications.
Market Outlook
Demand for IT hosting continues to rise as companies seek to cut costs and boost efficiency to encourage post-recession recovery. Security and consumer awareness are two factors that industry players will have to address moving forward to foster market growth.
Businesses eager to store and protect their data are moving away from traditional data backup storage options toward newer alternatives, such as web-hosted storage and cloud computing, creating demand for IT hosting services.
Leading Industry Associations
- Association of Internet and Hosting Service Providers www.aihsp.org
- Asia Cloud Computing Association www.asiacloud.org
- Cloud Computing Association www.cloudcomputingassn.org
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