The mid-sized companies using DRaaS accounted for the largest market share in the year 2019, owing to increasing economic conditions, better functionality at lower cost, secured infrastructure, fast recovery, rising regulatory pressures, and improved disaster recovery & business continuity. An advanced technology has reduced the significance of economies of scale and has led to potential growth for mid-sized companies to grow globally. Most of the firms are now upgrading the management skills and their technology base to compete with major companies. Various problems such as system’s crashing, network intrusion and others can occur due to natural disasters or human caused disasters. This may also lead to huge data loss as well as financial loss. Mid-sized companies are now investing into cloud-based DRaaS for quick back-up and to protect their business data. DRaaS not only offers data recovery protection but also ensures full continuity of business for mid-sized companies. Increasing population globally, expanding industrialization, subsidiaries by government for start-ups, ability to adopt changing technologies, and improved utilization of human assets and capital have increased the demand for mid-sized companies globally, enhancing the growth of the DRaaS market.
Mid-sized companies using DRaaS have gained high popularity in developed regions such as North America and Europe, owing to increasing adoption by public and government organizations, and adoption by various other end-users. For instance, The Federal Information Security Management Act (FISMA) is a legislation that assigns various agencies with responsibilities to secure data in the federal government. They have made a framework to protect the government information against any natural or human-made threat. Moreover, the UK and other European countries have also witnessed an increasing trend for DRaaS, due to increasing government support and rising awareness of data breach and data loss deterrence. DRaaS is also increasingly gaining popularity in Asia-Pacific region. The dramatic shifts in economic development, rapid industrialization, growing number of small & medium sized companies and high adoption of cloud-based services have led to increase use of DRaaS.
Various manufacturers are planning to apply various innovative technologies to gain customer’s attention and increase their market presence. However, the major players in the market such as, Amazon Web Services, SunGard Availability Services and IBM Corp., have been applying various strategies to meet the increasing demand for DRaaS market. The established companies have adopted technological advancements, partnerships and mergers and geographical expansion as their growth strategy to strengthen their presence in the market. For instance, in October 2019, VMware and Amazon Web Services have announced the strategic alliance to develop new integrated hybrid offering that will provide customers with full software-defined data center (SDDC). VMware Cloud on AWS will aid customers in running various applications across VMware vSphere-based private, public and hybrid cloud environments. Likewise, in July 2019, Sungard Availability Services announced Sungard AS Cloud-based recovery for Amazon Web Services that would provide automated recovery of virtual workloads on the AWS cloud in countries such as U.S., Canada, the U.K., and Western Europe. However, high network bandwidth requirements and lack of security and compliance may hinder the growth of the market.