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Rapid Rise in Micro, Small, and Medium Enterprises Provides Lucrative Market for IaaS

Blog Description

Infrastructure-as-a-service or IaaS is the latest trend in the cloud computing industry. The market for IaaS is reporting an immense growth in the global arena. The increasing number of micro, small, and medium enterprises (MSMEs) across the world is giving a significant boost to the market.  Nowadays, many companies have started to reduce the capital expenditure in order to manage their input, triggering the need to utilize IaaS extensively.

Browse the full Global IaaS Market Report:

IaaS provides virtualized computing resources to customers over the Internet. IaaS is a well-suited model for diverse assignments, which are either temporary or experimental, or can change without a prior notice. In an IaaS model, the provider hosts hardware, software, servers, storage, and other infrastructure components on the behalf of the client, offering resources that can be taken up on demand.

North America to Maintain Lead in Global IaaS Market

According to the research report, published by Transparency Market Research (TMR), the global IaaS has reached a value of US$15.6 bn in 2014. Analysts project the market to rise at a CAGR 22.10% between 2015 and 2022 and attain US$73.9 bn by the end of 2022. North America has emerged as the leading regional market for IaaS. In 2014, it acquired almost 40% of the overall market. Analysts predict that the market will maintain its dominance in the near future.

Dimension Data Plc, Fujitsu Ltd., Datapipe Inc., Virtustream Inc., IBM Corp., Joyent Inc., Verizon Communications Inc., Interoute Communications Ltd. Google Inc., Microsoft Corp., Hewlett-Packard Enterprise Ltd., Rackspace Inc., NTT Communications Corp., VMware Inc., Computer Sciences Corp., CenturyLink Inc., Amazon Web Services Inc., and Oracle Corp. are the major companies operating in this market.

Partnerships & Alliances: Latest Trend in IaaS Market

Hewlett-Packard Enterprise (HPE) Ltd. has recently collaborated with NTT Communications Corp. to provide its customers an instant access to IaaS. NTT Communications is a Japanese MNC and HP has collaborated with its American division. Both the companies have high hopes with this partnership. HPE is looking to stay ahead of its competition and NTT is focusing on the expansion of its business.

A month earlier, HPE announced its plans to partner with the IT giant, Microsoft. Both the companies are still in talks regarding this agreement. If the collaboration happens, HPE will be the preferred provider for Azure, which will automatically enable it to access the customer base of Microsoft, looking for Azure support and services. Analysts are considering this agreement as HPE’s bid for additional leverage to sell its hybrid cloud services, wherein Azure will be utilized as the back-end for scalable cloud services, which can be implemented by businesses to balance their own IT requirements.

Microsoft, on the other hand, has announced a partnership with Red Hat, making Red Hat Enterprises Linux (RHEL), the preferred choice on Microsoft Azure. This collaboration is expected to make it easy for MSMEs to deploy open source software of Red Hat on the Microsoft Azure cloud.

Browse the full Press Release of Global IaaS Market

On the whole, the future of global IaaS market looks thriving. However, concerns over privacy and security of data can hamper the market to a significant extent.