Global cloud infrastructure as a service market to grow at 25.7% until 2023

The market size of the Global IaaS market is estimated to be USD 31.1 Billion in 2018 and is expected to record CAGR growth rate of 25.7% and is expected to reach a market size of USD 97.6 Billion in 2023.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Pricing Trends
Other Key Market Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Infrastructure-as-a-Service refers to online services that provide high-level APIs which are applied to de-reference various low level details of underlying network infrastructure like physical computing resources, location, data portioning, scaling, security and backup.

Pools of hypervisors within the cloud operational system can support large numbers of virtual machines and the ability to scale services up and down according to customers’ varying computing needs.

An IaaS Provider provides policy-based services and are responsible for housing, operating and maintaining equipment it provides for a client. Clients often pay on per-use or utility computing basis.

Characteristics of IaaS include:

Automated Administrative tasks Dynamic Scaling Platform Virtualization Internet Connectivity

Market Overview

The Infrastructure as a Service market size is estimated to be USD 31.1 Billion in 2018 and is expected to grow at a CAGR of 25.7% from 2018 to 2023 to reach a market size of USD 97.6 Billion in 2023.

On the basis of Deployment, the Global IaaS market can be segmented into public, private and hybrid cloud services. Growing popularity of public cloud services from small and medium businesses owing to the high operational efficiency offered by these services aided by the low set-up cost is poised to fuel the industry demand over the forecast period (2018 to 2023).

Private Cloud is used by Enterprises for their internal usage for storage and regulation of Sensitive Data. Additionally, private cloud services have a high growth rate owing to its flexibility and scalability and resource sharing advantages among large number of networks.

Hybrid Cloud Market is expected to grow at a significant rate in the IaaS Market owing to its wide-scale applications and offering integrated services utilizing both private and public cloud computing services in the same organization. With access to hybrid cloud enterprises will have the capability to perform fast data exchange along with the additional security features.

Based on the Services, the IaaS market can be segmented into Disaster recovery as a Service(DraaS), Communication as a Service(CaaS), Database as a Service(DbaaS).

Of which DraaS is expected to witness high growth owing to its capability to replicate virtual servers by a third-party to recover data in an event of natural data failure and any security breach.

By end-use, the IaaS Market can be segmented into SMEs and large Enterprises, of this the SMEs are expected to show higher growth, expected to grow at a CAGR of 26.3% in the forecast period (2018 to 2023). These Segments can be further classified into various business verticals including BFSI, IT, and telecom, Media & Entertainment, Healthcare, Manufacturing, Transportation, and Consumer Goods & Retail.

BFSI and IT are expected to have the largest market share of 30% owing to increasing demand for data center infrastructure for virtualization and greater efficiency.

Among Regions, North America is projected to have the largest market share of 40% and is expected to dominate the Infrastructure-as-a-Service market in the forecast period (2018 to 2023). The dominance is equated by the presence of major IaaS Vendors in the North American Region.

Market Risks

Market Consolidation

The Global Infrastructure-as-a-Service market is highly consolidated with the top 3 IT vendors occupying 70% of the total market share, the consolidation is a market risk for not only new entrants but also for the customers as they are set to be prone with poor quality of services.

One area where relying on cloud infrastructure services carries a partial risk is around outages and the wide-scale effects downtime is liable to affect the companies that processes the bulk of their data on the cloud.

Vendor Lock-in

Vendor lock-in is a major barrier to the adoption of cloud computing, due to the lack of standardization. Also current solutions and efforts tackling Vendor lock-in are technology oriented.

The Vendor lock-in issue arises as a result of lack of standard interfaces and open APIs, the lack of open standards for VM format and service deployment interfaces as well as lack of open formats for data interchange. These issues affects the interoperability between cloud services of different cloud service providers, it also affects the interoperability of cloud resources and the internal legacy systems.

As a result of heterogeneity in the cloud provider solutions (i.e Hardware and Software) and service interfaces is a crucial problem as it forces customers to stick with the cloud technology offered by a single vendor due to the high cost associated with the porting of applications and data to a different vendors interface.

Many cloud vendors provide services based on custom-built policies, infrastructure, platforms and APIs that make the overall cloud landscape heterogeneous. Such variation cause interoperability, portability and integration very challenging.

Top Market Opportunities

Growing Demand for Serverless Computing

Serverless is a new model of computing that allows organizations to manage only the computing resources they need for each distinct operation. Serverless Computing removes the need for developers or system admins to manage the infrastructure resources offered by cloud providers.

While Serverless computing uses Servers to run applications it removes the server management and capacity planning aspect of cloud computing. Serverless computing offers great opportunity for developers seeking relief from the burden of managing Infrastructure.

By abstracting everything but a block of code, Serverless Computing makes the task of developers simple by reducing workload to iterate and deploy new code enabling smaller teams with smaller budgets to do things that only big companies could do before.

Instead of paying for pre-defined computing capacity and storage, developers and system admins only pay for the resources consumed by their applications. By adopting the Serverless computing model, Enterprises can reduce costs and accelerate application development in many instances.

IaaS Vendors May Add More DR Options

The increasing need of Disaster Recovery is one of the major factor fuelling the growth of the IaaS Market.

Storage was the largest IaaS segment in 2018 but Disaster Recovery is growing rapidly at a healthy CAGR of 36.3% and catching up with the need to counter rising incidences of downtime across the world. Disaster Recovery is not only imperative to the growth of the businesses but vendors are also making Disaster Recovery more accessible especially as part of a cloud environment.

This combination of necessity and availability is factoring on the uptake of Disaster Recovery Services. The flexibility has also seen IaaS gain traction across a range of enterprise types, including smaller than small – dubbed micro – enterprises due to their low capex and low set-up requirements.

Digitalization efforts by Governments

The Digitalization efforts by Governments in both developed as well as developing countries is expected to offer extensive growth opportunities in the next few years. The existence of a large working population and developing technology hubs, have expanded the competitive environment.

The countries such as China, India and Japan are putting in efforts to deploy various data centers to increase internet penetration in the rural areas of their economies and also to digitalize the government sites and other processes are likely to increase the adoption of IaaS.

These developments in addition to the growing need for enterprise level computing capabilities from large number of SMEs signifies a significant growth potential in the IaaS Market.

Market Drivers

Increasing penetration of Hybrid Cloud

Adoption of Hybrid cloud allows enterprises not to place all the data in one place. Having all data at one place makes organizations vulnerable to unexpected disasters. Hybrid Cloud prevents data loss and any threat as occurs In the case of public cloud. Private cloud is the safest form of computing but it is expensive.

Thus, hybrid cloud offers distinct advantages when it comes to security, confidentiality, and recovery of critical data or information and business continuity planning. It also saves cost by allowing to store information either on-premise or any of the deployment modes simultaneously. The data preserved on-premise in hybrid cloud helps in faster recovery and protects physical and virtual operating system and applications.

Rise in Adoption of Cloud among SMEs

Cloud Infrastructure adoption has increased among SMEs owing to advantages such as enhanced uptime, reliability, enriched IT service, increased flexibility of data access and operational speed. The demand for cloud services by SMEs is particularly high in the areas of disaster recovery, remote database management and e-mail hosting. Greater adoption is also driving the number of vendors offering cloud services.

Cost Reduction and Increasing Business Agility

Cloud offers the benefit of increasing the scale of services offered without increasing the capital expenditure, It is imperative that Enterprises must know how much they spend on IT resources before they deploy it and IaaS just does that by enabling enterprises to know what their payment for cloud services will be in any given time period, whereas hardware purchases often follows a three year refresh-cycle period that often forces enterprises to spend more on purchasing additional capacity or performance before they need it.

According to a recent survey by Ernst & Young it is estimated that monthly IT costs has reduced by 25% by moving the applications and services to the cloud. For companies with agile IT functions, business and IT leaders agree that infrastructure and technology are the primary drivers of that agility.

A recent survey concludes that IT companies focusing on improving their business agility are witnessing the benefits by adopting cloud technology and paving way for their businesses to become more responsive and flexible to demands of their business.

Cloud computing empowers businesses to gain competitive advantage over their peers by enabling enterprise IT dynamically anticipate and respond to changing business needs.

Increasing demand for business continuity

With services such as Disaster Recovery-as-a-Service and Backup-as-a-Service, IaaS offers benefits of backing up the data and restoring them when and where needed thereby strongly emphasising on business continuity.

Also IaaS offers the advantage of flexibility by offering features of rolling up or down cloud services according to the business needs without increasing the pool of IT resources an enterprise must purchase and manage.

For example, an Enterprise may open a new branch or shut down one, with the cloud the required adjustment of IT resources and systems can be made in a matter of minutes. The resiliency with the performance offered by the cloud and the built in redundancy also typically exceeds that of the on-premises infrastructure.

Market Restraints

High Price of the IaaS Services

As IaaS is a new technology and as the market penetration is in growth stage from infancy, so the upfront costs is typically high when compared to on-premise infrastructure resources and the implementation costs are also exorbitant which affects the adoption of Infrastructure-as-a-Service.

It should also be noted that the charges put on services such as consulting are also high when compared with other forms of Infrastructure resources which pricks the growth of IaaS.

Also since there is no cloud-assigned IP addresses for virtual servers the cloud-hosted applications must be rewritten or reconfigured, which adds to the overall costs associated with the development of the Application

Network Complexity Concerns

The Network Complexity Concerns associated with IaaS uproots right from the beginning with complexity in configuration of IaaS Services and the technical difficulty with the hosting of application in IaaS VMs are causing the derailment in the growth of the IaaS Market. Another issue affecting the adoption of IaaS is downtime and the latency issue caused due to the complexity in the enterprise computing environment.

As the Enterprise computing environment is growing complex, IT System and network failures are bringing down the performance of the Services and the Applications hosted in the IaaS.

Redundancy in Application Performance

Cloud tenants must be able to specify bandwidth requirements before the applications are hosted in the cloud environment, thereby ensuring the same performance of the application as hosted in on-premise infrastructure. Many tiered applications must require some guaranteed bandwidth levels between server instances to satisfy user transactions within an acceptable time frame and meet predefined SLAs.

Insufficient bandwidth will impose significant latency on user interactions. Therefore without explicit control, variations in cloud workloads and oversubscription may cause delay and drift of response time beyond acceptable limits thereby leading to SLA violations for the hosted applications.

Data Confidentiality and Security Concerns

Another issue that props up with the adoption of IaaS is the intrusion of private data as confidential information of another enterprise gets stored in the same stack of the own enterprise due to the availability of multi-tenancy in case of hybrid and public cloud. This results in impromptu access to private information and compromising data with other business entities along with growing complexity in the password authentication methods.

Also security issues such as Denial of Service (DoS), Data leaks, Authentication bypass, Interface and API hacking may occur; hence for the protection of confidential information of business entities strong encryption techniques should be implemented.

Industry Challenges

Lack of Awareness

Some Enterprises are still not fully aware of the benefits of hosting their Applications and Services in the cloud Infrastructure. Businesses not aware of the benefits that cloud has to offer are faced with many problems.

If a team of IT specialists are not familiar with the features of cloud technologies and principles of deploying cloud-based applications, operational and architectural issues arise that can lead to downtime but also more complicated problems.

Abuse of Cloud Services

The cloud can be accessed by legal and illegal businesses. The purpose of the latter is to promote illicit trade by launching Denial of Service (DoS) Attacks, distributing spam and sending malicious content, etc. One of the advantages of using cloud model is dynamically upscaling and downscaling of computing resources based on the business needs. This flexibility also affords attackers a dynamic environment in which to create their attacks.

It is relatively cheap to rent space from a Cloud Service Provider (CSP) and use the CPU Power and network bandwidth to launch DDoS attacks, run malicious websites, or control botnets. The other area of abuse is where cybercriminals are able to break into legitimate cloud instances by guessing passwords, obtaining them through social engineering attacks or by stealing the access keys.

Stringent regulatory compliances

Stringent regulatory compliance might hinder the IaaS Market growth. For instance, the EU Data Protection Act seeks to keep personal information with the European Union. Standards and regulations such as PCI-DSS, SOX and HIPAA are prompting many enterprises to evaluate their data protection measures.

Moving to the cloud can impact an organisation’s ability to comply with these standards and regulations. In a corporate data center or a colocation center everyone knows where the disk and server physically reside. Even a shared service provider can typically tell which physical systems are utilized and identify the data location for audit purposes.

Even in case of virtualization and disaster recovery with minimal effort the location where the data resides can easily be identified, but this is not the case with Public cloud, where it is impossible to find the location where data is stored. This presents the first compliance issue of identifying the location where the information resides.

The second compliance issue uproots with the issue of unsolicited access to information by the administrators of the System and Application, unsolicited access can occur in the case of public cloud as the Service provider can access the private information of their customers.

Technology Trends

Multicloud

Companies that want to avoid total reliance on a single cloud service provider or who want to take advantage of the best deals that different vendors offer opt for cloud services from multiple vendors which is referred to as Multi-cloud approach, meaning that they use more than one public cloud to store their data and IT services.

According to RightScale’s 2018 state of the cloud report, multi cloud is the preferred strategy for most enterprises, with companies on average reporting that they use nearly five different public cloud services.

Although Microsoft and Amazon are leading the public cloud market in terms of revenue, other vendors such as Google, IBM and others are slowly catching up. with the competition heating up, cloud vendors are offering rewards in the form of offers to retain their customers or to accumulate new ones.

Serverless Architecture

Serverless architecture is a software design method in which applications are hosted by third-party services. This model enables developers to execute code in response to events without having to build and maintain the IT Infrastructure. Despite the name “Serverless” this method requires servers to run code. However the organization does not require to purchase or rent servers or virtual machines for the need of developing an application.

Like Platform-as-a-Service (PaaS), serverless architecture platforms makes it easier for developers to deploy applications, but serverless takes that a step further by breaking down those applications to the level of functions and events. Serverless computing will offer maximum benefit to organizations that have applications with a few number of functions that needs to be hosted in the cloud.

Pricing Trends

In Infrastructure as a Service (IaaS) Two types of pricing plans are prominently used: price bundling and unbundling.Price unbundling, as exemplified by Google, charges for each computing characteristic separately and has similarities to pay-per-use pricing plans.Price bundling as offered by IBM, Amazon, and Microsoft uses a discrete set of predefined packages

Therefore, customers with specific computing requirements can only choose the next best plan that fulfils their needs and thus may be forced to buy computing resources that they may not fully need. Other providers such as Terremark offer pricing plans that can be categorised as in between price bundling and unbundling because they offer bundles of CPUs and memory but let customers decide on storage requirements.

Today’s pricing of infrastructure-as-a-service is not transparent because some providers, such as Google, charge separately for each service characteristic (e.g., $50 per CPU or $15 per GB of memory per month) and let customers freely configure the service.

In contrast, competitors like Amazon, Microsoft, and IBM only offer predefined bundles (e.g., 4 GB of memory, 400 GB of storage, and 2 CPUs for $140 per month). These different types of pricing plans make price comparisons very difficult.

Other Key Market Trends

Flexible Infrastructure

As companies handle greater volumes of data, they need more readily flexible infrastructure. While networks are primarily hardware-driven and more complex, software-defined networking enables smarter, automated networks that are simple to evaluate and manage to accommodate variable network demands.

The ability to extend infrastructure with colocation or with public and private cloud solutions also lend themselves to the rise in demand for more flexible infrastructure.

Market Size and Forecast

North America

The North American region leads the global Infrastructure as a Service market with the largest market share and is expected to grow at a CAGR of 24.3% in the forecast period (2018 to 2023).

Factors such as the wide uptake of IaaS & advancement of technology coupled with the increasing investments transpired in the cloud-based solutions are driving the market growth in the region.

Furthermore, attributing to the increasing penetration of hybrid cloud and advanced IT infrastructure, the region is likely to retain its dominance over the forecast period (2018 to 2023).

USA IaaS Market Size

USD 6.22 Billion – The estimated market size of the US IaaS Market in 2018
24% – The CAGR growth rate of the US IaaS market in the forecast period 2018 to 2023
USD 18.23 Billion- The expected market size of the US IaaS Market in 2023

Canada IaaS Market Size

USD 1.86 Billion – The estimated market size of the Canadian IaaS Market in 2018
24.2% – The CAGR growth rate of the Canadian IaaS market in the forecast period 2018 to 2023
USD 5.5 Billion- The expected market size of the Canadian IaaS Market in 2023

Latin America

The Latin American IaaS market is expected to be worth USD 9.25 Billion in 2023 from a market size of USD 2.25 Billion in 2018 growing at a CAGR of 25%. Brazil IaaS Market Size

USD 675 Million – The estimated market size of the Brazilian IaaS Market in 2018
25% – The CAGR growth rate of the Brazilian IaaS market in the forecast period 2018 to 2023
USD 2.05 Billion- The expected market size of the Brazilian IaaS Market in 2023

Mexico IaaS Market Size

USD 559.8 Million – The estimated market size of the Mexican IaaS Market in 2018
24.3% – The CAGR growth rate of the Mexican IaaS market size in the forecast period 2018 to 2023
USD 1.66 Billion- The expected market size of the Mexican IaaS Market in 2023

Argentina IaaS Market Size

USD 405 Million – The estimated market size of the Argentinian IaaS Market in 2018
25.2% – The CAGR growth rate of the Argentinian IaaS market in the forecast period 2018 to 2023
USD 1.25 Billion- The expected market size of the Argentinian IaaS Market in 2023

Asia-Pacific

The Asia Pacific region is another promising market for Infrastructure as a Service, accounting for a substantial market share. Countries such as China, Japan, and India are rapidly advancing due to the improving economy, which, in turn, supports the growth of the regional market.

Furthermore, spurting industrialization across the region is acting as a key driving force driving the growth of the IaaS market in the region.

China IaaS Market Size

USD 3.4 Billion – The estimated market size of the Chinese IaaS Market in 2018
26% – The CAGR growth rate of the Chinese IaaS market in the forecast period 2018 to 2023
USD 10.8 Billion- The expected market size of the Chinese IaaS Market in 2023

India IaaS Market Size

USD 2.04 Billion – The estimated market size of the Indian IaaS Market in 2018
25.6% – The CAGR growth rate of the Indian IaaS market size in the forecast period 2018 to 2023
USD 6.38 Billion- The expected market size of the Indian IaaS Market in 2023

Japan IaaS Market Size

USD 1.22 Billion – The estimated market size of the Japanese IaaS Market in 2018
25.4% – The CAGR growth rate of the Japanese IaaS market in the forecast period 2018 to 2023
USD 3.78 Billion- The expected market size of the Japanese IaaS Market in 2023

Europe

The European region accounts for the second largest market for Infrastructure as a Service, globally. IaaS market in the region offers lucrative opportunities owing to the rapidly growing enterprises. Countries such as the UK, France, Germany, and Italy, backed with the technological advancement positively impact the market growth in the region.

Continuing with the same growth trends, the IaaS market in Europe is expected to register the highest CAGR over the review period.

UK IaaS Market Size

USD 4.2 Billion – The estimated market size of the UK IaaS Market in 2018
25.4% – The CAGR growth rate of the UK IaaS market size in the forecast period 2018 to 2023
USD 13.02 Billion- The expected market size of the UK IaaS Market in 2023

Germany IaaS Market Size

USD 2.94 Billion – The estimated market size of the German IaaS Market in 2018
25.8% – The CAGR growth rate of the German IaaS market in the forecast period 2018 to 2023
USD 9.26 Billion- The expected market size of the German IaaS Market in 2023

France IaaS Market Size

USD 1.76 Billion – The estimated market size of the French IaaS Market in 2018
26% – The CAGR growth rate of the French IaaS market in the forecast period 2018 to 2023
USD 5.59 Billion- The expected market size of the French IaaS Market in 2023

Middle East and Africa

The MEA cloud infrastructure services market size is anticipated to reach USD 8.48 Billion by 2023. The market is anticipated to register a CAGR of 28.7 % during the forecast period (2018 to 2023). Increasing government investments towards digital transformation has fostered the market growth.

Moreover, growing awareness among small and medium enterprises regarding the advantages of cloud technology in business is anticipated to boost the market growth.

Saudi Arabia IaaS Market Size

USD 458 Million – The estimated market size of the Saudi Arabian IaaS Market in 2018
28.2% – The CAGR growth rate of the Saudi Arabian IaaS market in the forecast period 2018 to 2023
USD 1.58 Billion- The expected market size of the Saudi Arabian IaaS Market in 2023

UAE IaaS Market Size

USD 342 Million – The estimated market size of the UAE IaaS Market in 2018
28.5% – The CAGR growth rate of the UAE IaaS market in the forecast period 2018 to 2023
USD 1.2 Billion- The expected market size of the UAE IaaS Market in 2023

South Africa IaaS Market Size

USD 286 Million – The estimated market size of the South African IaaS Market in 2018
28.9% – The CAGR growth rate of the South African IaaS market in the forecast period 2018 to 2023
USD 1.02 Billion- The expected market size of the South African IaaS Market in 2023

Market Outlook

The market size of the Global IaaS market is estimated to be USD 31.1 Billion in 2018 and is expected to reach a market size of USD 97.6 Billion in 2023 growing at a rapid growth rate of 25.7% in the forecast period 2018 to 2023

Based on Deployment Model, the IaaS market is classified into Public, Private and Hybrid Models. Of which Hybrid Model is expected to hold the major market share of 45% and expected to offer lucrative growth opportunities.

On the Basis of Component Type Global IaaS market is classified into Storage, Network, Compute and others. Storage and Compute are poised to outperform other component types with high CAGR growth of 35% and 37% respectively.

By Industry Vertical, the Global IaaS Market is categorized into BFSI, Government & Education, Healthcare, Telecom & IT, Retail, Manufacturing and Media & Entertainment. Of all the Industry Vertical Telecom & IT hold a dominant position in 2018, but this trend is set to shift with BFSI to outperform other industry verticals in the forecast period (2018 to 2023) growing at a CAGR of 32%

Based on the User type, the Global IaaS Market is classified into SMEs and Large Enterprises. Of the two, SMEs is set to witness maximum adoption and are expected to exhibit maximum growth rate of 26.3% during 2018 to 2023.

Technology Roadmap

Edge Computing

Edge Computing is the practice of processing data near the edge of the network, where the data is being generated. Instead of in a centralised data processing warehouse.

Edge computing is a distributed, open IT architecture that features decentralised processing power, enabling mobile computing and Internet of Things (IoT) technologies. In edge computing, data is processed by the device itself or by a local computer or server, rather than being transmitted to a data centre.

Edge computing enables data-stream acceleration, including real-time data processing without latency. It allows smart applications and devices to respond to data almost instantaneously, as its being created, eliminating lag time.

This is critical for technologies such as self-driving cars, and has equally important benefits for business. Edge computing allows for efficient data processing in that large amounts of data can be processed near the source, reducing Internet bandwidth usage.

This both eliminates costs and ensures that applications can be used effectively in remote locations. In addition, the ability to process data without ever putting it into a public cloud adds a useful layer of security for sensitive data.

Distribution Chain Analysis

Infrastructure as a Service is a provision model in which an organisation outsources the equipment used to support operations, including storage, hardware, servers and networking components. The service provider owns the equipment and is responsible for housing, running and maintaining it. The client typically pays on a per-use basis.

The Distribution model adopted in the Infrastructure as a Service is the Plug-and-Play where the customer can directly access the computing resources such as virtual machines, storage and other network components. The pay-as -you-go model simplifies the adoption of Infrastructure as a Service as a computing solution.

Competitive Landscape

IaaS is becoming a Competitive technology in the cloud environment. There exist huge untapped business opportunities in this market. Many SMEs are entering into the market and collaborating with large players to provide various solutions and services.

New start-ups are coming with new applications and services in the market and they are expecting to see double-digit growth in the next 5-6 years. In this space, collaboration and M&A are expected to continue.

Technological giants such as AWS, Google, IBM, Cisco Systems, CSC, VMware, Rackspace, and Fujitsu, along with some other innovators such as ProfitBrick, Savvis, Mindtree, and others, are providers of leading IaaS solutions.

These players have adopted various growth strategies such as new product launches, partnerships, contracts, collaborations, acquisitions, and expansions to expand their global presence and increase their market shares in the global infrastructure as a service market.

Competitive Factors

Fierce competition is experienced between companies offering Infrastructure as a Service because they are dealing with the same customer base and offer products similar to other companies.

With the Infrastructure as a Service growing rapidly, companies begin their price wars with their competitors. With such a high competitive market, it comes with a higher degree of rivalry.

There is a low exit barrier percentage for cloud computing because customers are locked-in to the cloud computing company when they decided to subscribe to their products.

Due to low expenses and expertise needed for startup companies, they tend to lack creativity and uniqueness which allows them to stand out from the crowd from the rapidly growing technology industry.Because of the absence of uniqueness, many companies blend together, making it difficult to identify one company from another.

Not only it is difficult to distinguish companies from one another it is also difficult to distinguish the different, yet very similar products. As a result, the rating for rivalry among existing firms is a high competitive force.

Key Market Players

Amazon Web Services, Inc. develops and provides cloud computing services to organizations in the United States and internationally.

The company offers cloud infrastructure services, such as compute, storage and content delivery, database, and networking services; platform services that include analytics, enterprise applications, mobile services, and Internet of Things; Amazon MSK, a managed service for Apache Kafka that allows developers to build and run applications based on Apache Kafka; Amazon WorkLink, a managed service that enables companies to provide their workforce with secure one-click access to internal websites and web applications from their mobile devices; AWS Ground Station that allows customers to control satellite operations, ingest satellite data, and integrate the data with applications and other cloud services running in AWS; and developer tools, management tools, security and identity services, and application services.

Microsoft Azure develops and deploys cloud computing software solutions. Its products include analytics, block chain, compute, containers, databases, developer tools, DevOps, identity, integration, internet of things, management, media, Microsoft azure stack, migration, mixed reality, mobile, networking, security, storage, and web products.

The company’s solutions comprises hybrid cloud applications, decentralized identity, Oracle on Azure, DevOps, mobile, e-commerce, Azure governance, confidential computing, SharePoint on Azure, Dynamics on Azure, Red Hat on Azure, LOB applications, Development and test, business intelligence, big data and analytics, modern data warehouse, business SaaS apps, backup and archive, disaster recovery, digital marketing, digital media, high-performance computing, micro service applications, gaming, and server less computing. In addition, it offers information technology consulting and other services.

Rackspace US, Inc. provides managed dedicated and cloud computing services. The company offers managed hosting, application hosting, database management, e-commerce hosting, email hosting, enterprise resource planning, productivity and collaboration, web content management, website hosting, professional, and security and compliance solutions for dedicated server, VMware, Amazon web service, Google cloud, Microsoft, OpenStack, pivotal cloud foundry, e-commerce application, email, and web content management platforms. It serves business service, education, finance, government, healthcare, manufacturing, and retail industries worldwide.

International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers a portfolio of enterprise artificial intelligence platforms, such as analytics and data management platforms, cloud data services, talent management, and industry solutions primarily under the Watson Platform, Watson Health, and Watson Internet of Things names. This segment also offers transaction processing software for use in banking, airlines, and retail industries.

The company’s Global Business Services segment offers business consulting services; delivers system integration, application management, maintenance, and support services for packaged software applications; and finance, procurement, talent and engagement, and industry-specific business process outsourcing services.

Its Technology Services & Cloud Platforms segment provides project, managed, outsourcing, and cloud-delivered services for enterprise IT infrastructure environments; technical, and software and solution support services; and integration software solutions.

Google LLC is a global technology company specializes in internet-related services and products. The Company is primarily focused on web-based search and display advertising tools, search engine, cloud computing, software, and hardware.

VMware, Inc. provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally.

The company offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions.

It also provides networking and security products and services that enable customers to connect, secure, and operate their network consistently within and across the data center, cloud, and network edges; and storage and availability products, including data storage and protection options.

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides products for transporting data, voice, and video within buildings, across campuses, and globally.

Strategic Conclusion

The Global IaaS market is forecast to grow at a CAGR of 25.7% from USD 31.1 Billion in 2018 to $97.6 Billion in 2023.

The major challenges pricking the growth of the Global IaaS market includes Lack of Awareness, Abuse of Cloud Services and Stringent regulatory compliances

The growth of the market is restrained by factors such as High Price of the IaaS Services, Network Complexity Concerns, Redundancy in Application Performance and Data Confidentiality and Security Concerns

The growth of the Global IaaS market is augmented by Drivers such as Increasing penetration of Hybrid Cloud, Rise in Adoption of Cloud among SMEs, Cost Reduction and Increasing Business Agility and Increasing demand for business continuity

Appendix

IaaS – Infrastructure as a Service
API – Application Programming Interface
USD – US Dollar
CAGR – Compounded Annual Growth Rate
DraaS – Disaster recovery as a Service
CaaS – Communication as a Service
DbaaS – Database as a Service
SME – Small and Medium Enterprises
BFSI – Banking, Financial Services and Insurance
VM – Virtual Machine
DR – Disaster Recovery
IP – Internet Protocol
SLA – Service Level Agreement
DoS – Denial of Service
CSP – Cloud Service Provider
PCI-DSS – Payment Card Industry Data Security Standard
SOX – Sarbanes-Oxley Act
HIPAA – Health Insurance Portability and Accountability Act
PaaS – Platform-as-a-Service

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