Infrastructure As A Service (IaaS) Market size is set to grow by USD 1.25 billion from 2024-2028, Shift from capex model to OPEX model boost the market, Technavio

NEW YORK, Aug. 7, 2024 /PRNewswire/ -- The global infrastructure as a service (IaaS) market size is estimated to grow by USD 1.25 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 55.16%  during the forecast period. Shift from capex model to opex model is driving market growth, with a trend towards increasing demand for cloud-based applications. However, increasing incidences of data breaches  poses a challenge. Key market players include 11 11 Systems Inc., Akamai Technologies Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Datacom Group Ltd., Dell Technologies Inc., DigitalOcean Holdings Inc., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Rackspace Technology Inc., Redcentric plc, and VMware Inc..

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Market Driver

The global Infrastructure as a Service (IaaS) market is experiencing significant growth due to the increasing adoption of cloud computing by organizations of all sizes. Cloud-based solutions offer numerous benefits, including quick implementation, improved customer experience, data accessibility, and reduced cost. Small businesses and startups can leverage the scalability of hardware and resources offered by cloud providers, while large organizations can scale their workload as needed without the need for expensive data center setup. The retail, healthcare, manufacturing, telecommunication and IT, media and entertainment, and BFSI industries are among the major adopters of cloud services due to their advantages in reliability, enhanced uptime, and flexibility. Government agencies are also turning to IaaS to address challenges in managing diverse data types and sizes, optimizing services, and ensuring security and compliance. Vendors like Microsoft Azure Government and Datacom Group Ltd. Offer IaaS solutions tailored to government agencies' specific needs. Despite security concerns, the market is expected to grow due to the benefits of cloud services, including cost savings, increased efficiency, and scalability. 

Infrastructure as a Service (IaaS) is a popular cloud computing solution that provides businesses with on-demand access to computing resources, including servers, storage, and networking hardware. IaaS is a key trend in the IT & telecom industry, with many businesses, even Small and Medium-sized Enterprises (SMBs), adopting this model for its flexibility and cost savings. IaaS enables businesses to build a customized IT infrastructure, using hypervisors for virtualization and service-oriented architecture for efficient computing. Data centers provide the necessary physical infrastructure, while cloud services offer plug-and-play services for easy deployment. Sectors like retail & e-commerce, energy & utilities, and healthcare are embracing IaaS for its processing capabilities and evidence-based care, with electronic health records and AI being key applications. However, with the increased use of IaaS comes cybersecurity risks, including cyberattacks and data breaches. Infrastructure-as-a-Service providers offer automation, digitization, and compostability to mitigate these risks and ensure business continuity through disaster recovery. IaaS also supports mobility, enabling businesses to access their applications and data from anywhere, at any time. Overall, IaaS is a game-changer for businesses, offering scalability, flexibility, and cost savings, while minimizing the need for skilled resources and hardware investments. 

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Market Challenges

• The global Infrastructure as a Service (IaaS) market is experiencing significant growth due to the increasing adoption of cloud-based application software. However, this market faces a major challenge in the form of data security breaches. XSS, XSRF, and SQL injection attacks are common security threats that put customer data at risk. In a multi-tenant cloud environment, a vulnerable application can compromise the security of other applications sharing the same database infrastructure. This growing concern over data security is leading customers to demand stronger security measures from IaaS providers. Failure to address these security challenges could negatively impact the growth of the IaaS market.
• Infrastructure as a Service (IaaS) market is witnessing significant growth due to the increasing adoption of cloud computing services. Tintri's Cloud Engine and Cloud Platform offerings are popular choices for businesses looking to deploy workloads in public, private, or hybrid cloud environments. The Computing and Networking segments are key areas of focus, with industries such as Healthcare, Manufacturing, Retail and e-commerce, IT and Telecom, and Edge Computing leading the charge. Challenges in IaaS include rapid deployment and scalability, hardware requirements, and data security concerns. Data access, location, and privacy are critical issues, especially for sensitive industries. Security threats like data leaks, permanent data loss, application vulnerabilities, and cloud service exploitation are major concerns. Multitenancy, de-provisioning, and hybrid models add complexity to IaaS adoption. Companies must carefully consider their cloud supplier, data protection, and de-provisioning policies to mitigate risks. On-premises data centers and virtualized IT components continue to coexist with cloud solutions. The use of flash drives and external hard drives for data storage adds to the infrastructure complexity. The mobile workforce and distributed cloud computing further complicate network management. Ultimately, businesses must balance the benefits of cloud services with the risks and choose the right infrastructure model for their needs.

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Segment Overview 

This infrastructure as a service (iaas) market report extensively covers market segmentation by  

1. Deployment 
• 1.1 Public cloud
• 1.2 Private cloud
• 1.3 Hybrid cloud
2. End-user 
• 2.1 Large enterprises
• 2.2 SMEs
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Public cloud-  The Infrastructure as a Service (IaaS) market refers to the delivery of virtualized computing resources over the internet. IaaS providers offer businesses on-demand access to computing power, storage, and networking resources. Companies can rent these resources, pay only for what they use, and easily scale up or down as needed. Major players in the IaaS market include Amazon Web Services, Microsoft Azure, and Google Cloud Platform. These providers offer reliable, secure, and flexible solutions, enabling businesses to focus on their core competencies rather than managing IT infrastructure.

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Learn and explore more about Technavio's in-depth research reports

The global cloud computing market is driven by the increasing demand for scalable IT solutions and cost efficiency. Key players include Amazon Web Services, Microsoft Azure, and Google Cloud. Simultaneously, the global cloud storage services market is expected to fueled by the rising need for data backup and disaster recovery solutions. Major companies in this space are Amazon, Microsoft, and IBM, offering advanced storage solutions and enhanced security features.

Research Analysis

Infrastructure as a Service (IaaS) is a type of cloud computing service that provides businesses with on-demand access to computing resources, such as servers, storage, and networking, without the need for physical infrastructure. IaaS enables rapid deployment of IT resources for running applications and handling day-to-day operations. It offers plug-and-play services, making it easier for businesses, especially Small and Medium-sized Enterprises (SMBs), to digitize their operations. IaaS also supports distributed cloud computing, allowing businesses to access resources from multiple locations. With automation and virtualization, IaaS offers high processing capabilities and scalability, making it an ideal solution for businesses in the IT & telecom industry, retail & e-commerce industry, and other sectors requiring high-performance computing. IaaS also supports disaster recovery, ensuring business continuity in case of unforeseen events. Hardware components like flash drives and external hard drives can be attached to IaaS instances for additional storage needs.

Market Research Overview

Infrastructure as a Service (IaaS) is a cloud computing model that provides virtualized computing resources over the internet. These resources include processing capabilities, storage, and networking, delivered as plug-and-play services. IaaS allows businesses to rapidly deploy and scale their IT infrastructure, making it an attractive option for organizations in various industries such as healthcare, manufacturing, retail and e-commerce, IT and telecom, and more. IaaS providers offer public, private, and hybrid cloud solutions, catering to different business needs. The computing segment includes servers, virtual main memory, and virtualized IT components, while the networking segment focuses on networking hardware and networking services. The benefits of IaaS include automation, digitization, and rapid deployment. However, it also comes with cybersecurity risks, such as cyberattacks, data breaches, and permanent data loss. To mitigate these risks, IaaS providers offer security features like AI, Big Data, and Tintri Cloud Engine and Platform. IaaS enables businesses to access their application workloads and data from anywhere, making it ideal for mobile workforces. It also supports industry-specific requirements, such as evidence-based care in healthcare and service-oriented architecture in IT and telecom. Despite the advantages, IaaS adoption requires careful consideration of factors like data access, data center location, and data security. Businesses must also ensure they have skilled resources to manage their cloud infrastructure and mitigate potential security threats. In conclusion, IaaS is a powerful cloud computing service that offers businesses the flexibility and scalability they need to grow and compete in today's digital economy. However, it also comes with its challenges, and businesses must carefully evaluate their needs and risks before making the transition.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Deployment
• Public Cloud
• Private Cloud
• Hybrid Cloud
• End-user
• Large Enterprises
• SMEs
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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