Midsize businesses using DRaaS accounted for the largest market share in 2016, due to growing economic conditions, better functionality at lower cost, secure infrastructure, fast recovery, increasing regulatory pressures, and improved disaster recovery and business continuity. Advanced technology has reduced the importance of economies of scale and has led to growth potential for midsize companies to grow globally. Most companies are now upgrading management skills and their technology base to compete with major companies. Various issues such as system crash, network intrusion, and others may occur due to natural disasters or human-caused disasters. This can also lead to huge data loss as well as financial loss. Midsize businesses are now investing in cloud-based DRaaS to quickly back up and protect their business data. DRaaS not only offers data recovery protection, but also ensures full business continuity for midsize businesses. Global population growth, expanding industrialization, government subsidiaries for new businesses, the ability to adopt changing technologies, and better utilization of human assets and capital have increased the demand for midsize businesses globally. globally, enhancing the growth of the DRaaS market.
Midsize businesses using DRaaS have gained wide popularity in developed regions such as North America and Europe, due to growing adoption by government and public organizations, and adoption by various other end users. For example, the Federal Information Security Management Act (FISMA) is legislation that assigns various agencies with responsibilities to protect data in the federal government. They have created a framework to protect government information against any natural or human threats. In addition, the UK and other European countries have also witnessed a growing trend for DRaaS, due to growing government support and rising awareness of data breach and data loss deterrence. DRaaS is also gaining more and more popularity in the Asia-Pacific region. Dramatic changes in economic development, rapid industrialization, the growing number of small and medium-sized businesses, and the high adoption of cloud-based services have led to increased use of DRaaS.
Various manufacturers plan to apply various innovative technologies to capture the attention of customers and increase their presence in the market. However, major market players such as Amazon Web Services, SunGard Availability Services, and IBM Corp. have been applying various strategies to meet the growing demand of the DRaaS market. Established companies have adopted technological advances, alliances and mergers, and geographic expansion as their growth strategy to strengthen their presence in the market. For example, in October 2016, VMware and Amazon Web Services announced a strategic alliance to develop a new integrated hybrid offering that will provide customers with a complete software-defined data center (SDDC). VMware Cloud on AWS will help customers run various applications in hybrid public and private cloud environments based on VMware vSphere. Similarly, in July 2016, Sungard Availability Services announced Sungard AS cloud-based recovery for Amazon Web Services that would provide automated recovery of virtual workloads to the AWS Cloud in countries such as the US, Canada, UK UK and Western Europe. However, high network bandwidth requirements and lack of security and compliance may hamper market growth.