Midsize companies using DRaaS accounted for the largest market share in 2016, due to increased economic conditions, better functionality at lower cost, secure infrastructure, rapid recovery, increased regulatory pressures, and improved disaster recovery and business continuity. . Advanced technology has reduced the importance of economies of scale and generated potential growth for midsize companies to grow globally. Most companies are improving their management skills and technology base to compete with major companies. Various problems such as system crash, network intrusion and others can 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 backup and protect their business data. DRaaS not only offers protection for data recovery, but also ensures complete business continuity for midsize companies. 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 mid-sized companies at the global level. worldwide, enhancing the growth of the DRaaS market.
Midsize companies 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 Administration Act (FISMA) is legislation that assigns various agencies the responsibility for protecting data in the federal government. They have created a framework to protect government information against any natural or man-made threat. Furthermore, 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 the high adoption of cloud-based services have led to increased use of DRaaS.
Various manufacturers plan to apply various innovative technologies to attract customer attention and increase their market presence. 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 embraced technological advancements, 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 diverse applications in private, public and hybrid cloud environments based on VMware vSphere. Additionally, 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, the UK. and Western Europe. However, high network bandwidth requirements and a lack of security and compliance can hamper market growth.