The next five years are crucial for the global growth of the dedicated cloud IaaS market. According to IDC experts, vendors can expect a 100x growth of revenue by 2025. If service offerings earned $138 million in 2020, the market will receive revenue of $14 billion by 2025 with a 151.8-percent CAGR. Organizations and hosted service providers will be the primary users. In this article at ChannelLife, discover more about dedicated cloud IaaS market growth from author Catherine Knowles.
Dedicated Cloud IaaS Global Forecast
Organizational investment in compute and storage frameworks have gone up by 12.5 percent YoY in the first three months of 2021, i.e., $15.1 billion. IDC reveals the estimation in its ‘Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment’ report. Meanwhile, the non-cloud infrastructure has also seen a growth of 6.3 percent YoY in the first quarter, i.e., $13.5 billion.
Reasons Behind the Revenue Spike
IDC experts speculated that digital transformation is the chief reason for the dedicated cloud IaaS (DCIaaS) market growth. Buying services helps companies preserve their resource bandwidth and focus on achieving business objectives, looking for new opportunity windows, and improving customer loyalty.
Previously, most organizations went for public cloud services. In the new normal world, system and cloud vendors are coming up with more customized, enterprise-level offerings. “This model is essentially a dedicated version of a publicly available cloud offering, modified to run on premises or in a specially certified colocation environment, including outside of a traditional datacenter environment (edge),” says Knowles.
The cloud service provider will be responsible for dedicated cloud IaaS solutions from ‘delivery, maintenance, updating, and ultimate disposal of the asset’. Natalya Yezhkova, IDC research VP of IT infrastructure practice, confirms that rising demands have enabled IT vendors to diversify their IaaS portfolio. Organizations had concerns about migrating their proprietory data off-campus but wanted to benefit from public cloud services. With DCIaaS offerings, they can get the best of both worlds.
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