The Cloud Backup Market is expected to register a CAGR of approximately 24% during the forecast period (2020 - 2025). The primary driver for adoption of cloud backup across businesses is due to the increase in cloud adoption across both big and small is the need for agility and flexibility in the face of accelerating innovation and disruptions from competitors.
- For instance, according to Right Scale’s annual State of the Cloud Report for 2019, approximately 94% of the enterprises are using the cloud, out of which, 91% of businesses use public cloud, and 72% use a private one, while most enterprises are opting for both the options, i.e., 69% of them opting for a hybrid cloud solution.
- In April 2020, Commvault launched the NetApp Scale-out Data Protection (SDP), to offer enhanced and rapid recovery support solutions for critical data across NetApp’s hybrid-enabled storage systems. The NetApp SDP leverages the Commvault Complete Backup and Recovery software to provide snapshot management, backup, and disaster recovery functionality.
- Moreover, according to a study by EMC, approximately 40 trillion gigabytes of data (40 zettabytes) is expected to be generated by 2020. Also, IBM estimated that approximately 90% of the data was generated in the last two years. Due to the massive data generation, there has been an increasing demand for low-cost data backup/storage across enterprises.
- Furthermore, due to the global coronavirus outbreak, the demand for cloud backup solutions have been on the rise. This is primarily due to the increase in remote working locations of employees across the world. Also, SaaS-based collaborative applications witnessed a substantial increase in demand during the lockdown period, due to the need to work remotely.
- However, cloud backup solutions are one of the most comprehensive tools against cyber-attacks and data breaches. However, if mismanaged, it may pave the way for the attackers to seamlessly enter the database stored on the backup server and use it against the user. Hence, the privacy and security issues act as a major hindrance to the adoption of cloud backup solutions.
Key Market Trends
BFSI Expected to Exhibit Maximum Adoption
- The Banking Industry is rapidly adopting digital banking and investment solutions, which is also augmenting the demand for cloud computing in the BFSI industry. It provides greater business agility and scalability to the organizations in the industry. Several financial service organizations are migrating to cloud solutions to deliver innovation, customization, and security to gain a competitive edge.
- According to Capgemini, cloud solutions are helping the banks to significantly cut expenses by slashing infrastructure costs by a quarter and potentially saving about USD 15 billion by 2019. Hence, many vendors are providing IaaS and PaaS applications to eliminate the need to manage to host, maintaining, updating, and scaling service operations. These trends are expected to boost further the adoption of cloud backup solutions in the BFSI industry.
- Further, the increasing instances of data breaches in the banking sector are propelling the banks to adopt cloud backup solutions, which will enable them to recover from any disaster. Public cloud solutions provide an enhanced backup resource to ensure business continuity despite a disaster.
North America Expected to Dominate the Market
- With the presence of market leaders in the region and with the early adoption of technologies across various end-user verticals, North America stood as the leading regional market and is expected to continue its dominance throughout the forecast period. Also, early adoption of new technologies, considerable investments in R&D for the cloud-based solutions, and enhanced IT infrastructure are expected to drive the market growth further.
- Moreover, low-cost, secure, and enhanced backup resources provided by the regional market players are expected to drive the dominance in the region further. In September 2019, IBM Cloud made additional price reductions on a selected virtual server, storage, backup, and network port speed pricing to help various organizations in further reducing their cloud infrastructure costs.
- The United States accounts for nearly half of all hyperscale data centers, indicating its dominance in cloud and internet technologies. Besides, companies like Google, Amazon, Microsoft, IBM, and other primary cloud providers continue to build new data centers at a frantic pace. Moreover, businesses in the region are also adopting cloud computing solutions, which contribute significantly to the data traffic. These trends indicate the need for cloud backup solutions in the region.
The competitive landscape of Cloud Backup Market is moderately fragmented owing to the presence of several market players across the globe. The increasing adoption of cloud computing for data storage and a massive increase in data generation is expected to boost the market. Hence, the market players are making several innovations to provide enhanced solutions in the market as compared to its peers and gain maximum market traction.
- June 2020 - Otava extended its cloud solution by adding Otava Cloud Backup for Microsoft 365. The new Software as a Service (SaaS) offering provides a backup service powered by Veeam for users of Microsoft 365 online applications.
- April 2020 - Veeam Software collaborated with Microsoft Azure to provide its New Veeam Backup, an enterprise-ready cloud backup and recovery solution for Microsoft Azure. The new offering will enable customers and service providers to move more applications and data to Azure and to cost-effectively, securely, and easily protect cloud applications and data in Azure.
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