CLOUD BACKUP & RECOVERY SOFTWARE MARKET ANALYSIS

Market Challenges And Opportunities

Global Cloud Backup & Recovery Software Market Drivers:

Growing demand for cloud-based services in various industry verticals to propel the market pace

The cloud-based services are constantly growing in demand across several industries, as these services offer various benefits including reduction of hosting costs, rise in capacity, reduction in cost of labor & equipment, improved collaboration, more streamlined operations, and better productivity. Moreover, as the cloud acts as an ideal solution for MSEs that are not capable of affording the use of backup and recovery systems in house, the demand for cloud backup and recovery software is increasing in these organization. For instance, as per the Coherent Market Insights, in the U.S., 10% of the enterprises having more than 1,00 employees plan to invest US$ 10 million into cloud service in 2017, due to this cloud computing will account for the nearly a third of the average IT budget of the U.S. company.

Growing focus on reduction of IT expenditure to augment the market growth

The use of cloud backup & recovery enables application and infrastructure support to enterprises at a lower cost compared to on-premises solutions. These solutions help companies to reserve and pay for the amount of data required and actively used by the companies. Thus, the enterprises are cutting down their operational and capital expenditure on IT infrastructure with the adoption of cloud backup & recovery services, which in turn is expected to propel growth of the global cloud backup & recovery software market over the forecast period.

Global Cloud Backup & Recovery Software Market Opportunities:

Rise in adoption of cloud backup & recovery solutions among small and medium enterprises is expected to create several growth opportunities in the global cloud backup & recovery software market over the forecast period. As per the Salesforce website, the cost of data recovery for SMEs can be US$ 10,000 excluding the cost of man hours and downtime needed for recovering the data. Thus, getting the data back without backup and recovery solution for SMEs becomes difficult for and this further results into rise in adoption of cloud backup & recovery solutions. This in turn creates various opportunities in the global cloud backup & recovery software market.

Moreover, increase in implementation government regulations for data security is also expected to provide several business opportunities in the global cloud backup & recovery software market over the forecast period. For instance, Health Insurance Portability and Accountability act (HIPAA), founded standards for the privacy and security of healthcare-related data. The healthcare organization have to ensure that the electronic data systems in their organization adhere to the HIPAA regulations. This factor is creating growth opportunities for the players in the market.

Global Cloud Backup & Recovery Software Market Restraints:

Problems regarding storage management and securing backups to impede the market pace

Several organizations leave their database backup unencrypted, this is mainly due to the complexity of the procedure, which may corrupt the data and create a need for additional software licenses. Furthermore, increasing number of backups causes more challenges for storage management needing deeper understanding of databases backup needs. This further creates issues in storage management. Hence, these factors are expected to restrain growth of the global cloud backup & recovery software market.  However, with increasing technological development, market players are focusing on offering solutions that overcome these issues, and this in turn is expected to support growth of the market.

Slow reaction time in data retrieval and interruptions are to hinder the market growth

Latency in data transfer during the retrieval from the public cloud infrastructure, and prevalence of interruptions after the data is retrieved and transmitted to the location of end-user, creates hesitance among consumers towards the adoption of cloud backup & recovery software. In the data exchange between cloud services across the internet, latency can be significantly high. Such delays can lead to higher costs for users of multiple cloud services. This in turn is expected to restrain growth of the global cloud backup & recovery software market over the forecast period.

Figure 2. Global Cloud Backup & Recovery Software Market Share (%), by Deployment Model, 2021