Massive Merger of Traditional Hosting Infrastructure Services with Modern Cloud Underway, Says FMI

Jul 10,2019 | Electronics, Semiconductors, and ICT

The global hosting infrastructure services market is estimated to reach a value of US$ 12 billion in 2019, up from US$ 11 billion in 2018, according to a recently published report by Future Market Insights (FMI). Gains remain underpinned by a range of factors, including continuous advancements in cloud services and migration to hybrid IT environments.

Operational efficiency along with low cost and enhanced security are identified as key factors behind the spike in adoption of hosting infrastructure services. Furthermore, robust developments in small and midsize businesses (SMBs) are being captured by market vendors as dynamic opportunities to gain higher traction, opines the FMI report.

hosting infrastructure services pr imgae

The emergence of highly advanced technologies such as machine learning (mL) and artificial intelligence (AI) has led to tectonic shifts in end-user preferences as well as services offered. End-users’ preference for a holistic, multi-pronged approach is influencing vendors to merge traditional hosting infrastructure with modern public- and private- cloud technologies.

A number of companies operating in the BFSI industry are embracing hybrid cloud models through which critical applications and processes are migrated to private cloud with advanced security attributes, while other applications are transferred to public cloud for agility and cost efficiency. These factors are likely to increase the appeal for businesses and enterprises to leverage hosting infrastructure service providers.

For More Detailed Insights on Hosting Infrastructure Services Market Opportunity

Big Gains in Managed Hosting and Colocation Services

Managed hosting and colocation services continue to witness greater adoption; collectively, these account for 2/5th revenue shares. As businesses make it a point to focus on their core competencies, rather than worrying about managing IT infrastructure, average spending is likely to witness a steady increase. According to the study, adoption is likely to remain strong in storage, data security, and cloud computing categories. The adoption of managed hosting and colocation services on the basis of ‘pay-per-use’ model has thus enabled the critical exchange and crossroads of entire IT environment.

It is also imperative to note that virtual private server-based services or VPS hosting services are growing in prominence. Providing enhanced control over servers and enabling agile deployment of virtualized workloads at low infrastructure cost, spending on VPS services is likely to witness an uptick over the course of the forecast period.

While industry-wide adoption of Software as a Service (SaaS) continues to influence growth strategies, stakeholders are focusing on boosting the visibility of other services such as Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). As enterprises are increasingly incorporating IaaS in their hybrid IT environments, hosting infrastructure service providers are implementing latest tools and technologies to improve operational efficiency at competitive offering. According to the FMI report, hosting infrastructure revenues through the adoption of IaaS is estimated to register a year-over-year (Y-o-Y) growth of 8% in 2019 through 2018.

According to the report, vendors are focusing on offering novel services and highly standardized products through technological innovations. Small players are flourishing through the presence of data center in respective countries and specific offerings for local customers.

FMI’s research study offers a long-term perspective and extensive analysis into opportunities prevailing in the hosting infrastructure service market for the period between 2019 and 2029. According to the study, the global hosting infrastructure services market is estimated to record a CAGR of ~8% during the forecast period.

About FMI

Future Market Insights (FMI) is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India. FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace, with confidence and clarity. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure that our clients prepare for the evolving needs of their consumers.

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