Midsize businesses using DRaaS accounted for the largest market share in 2016, due to increasing economic conditions, better functionality at lower cost, secure infrastructure, rapid recovery, increasing regulatory pressures, and improved disaster recovery and business continuity. An advanced technology has reduced the importance of economies of scale and has led to potential growth for mid-market companies to grow globally. Most of the companies are now upgrading management skills and their technology base to compete with the 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 start-ups, the ability to adopt changing technologies, and better utilization of human assets and capital have increased the demand for midsize companies at a global level. worldwide, enhancing the growth of the DRaaS market.
Midsize businesses using DRaaS have gained great popularity in developed regions such as North America and Europe, due to increasing adoption by public and government 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 for protecting data in the federal government. They have created a framework to protect government information against any natural or human threat. In addition, the UK and other European countries have also witnessed a growing trend for DRaaS, due to growing government support and growing 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 high adoption of cloud-based services have led to increased use of DRaaS.
Several 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 pursuing various strategies to meet the growing demand in the DRaaS market. Established companies have embraced technological advances, alliances and mergers, and geographic expansion as their growth strategy to strengthen their market presence. 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 multiple applications in private, public and hybrid 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 including the US, Canada, UK and Western Europe. However, high network bandwidth requirements and a lack of security and compliance may hinder market growth.