The global private cloud server market size is expected to reach $183 billion by 2025, rising at a market growth of 29.4% CAGR during the forecast period, according to a new report published by KBV Research. The study results are dominantly based on large enterprise responses.
Escalating concerns regarding data security and disaster recovery (DR), together with continuing proliferation of the trends in Bring Your Own Device (BYOD) and the increasing integration of mobile workers, are emerging as major factors that are expected to push the market growth for private cloud server solutions. KBV Research also predicts that the increasing focus on providing real-time and quick data access will drive market growth.
The user hosting category (in-house hosted private cloud server solutions) witnessed huge market dominance in 2018. The dominating nature of the segment was attributed to the increased versatility and scalability provided by user-hosted private cloud storage solutions without sacrificing data security. User-hosted solutions require a private cloud hosting data center in-house. As it is operated internally by the organization’s own IT department, this infrastructure can be regarded as a more secure infrastructure, according to KBV Research.
The hosting provider market witnessed promising growth when it comes to delivering private cloud server solutions, growing at a CAGR of 36.6 % during the forecast period. A possible explanation is that hosting service providers offering hosted private clouds can help address important compliance elements like HIPAA and PCI-DSS. Many companies have little choice other than to use a private cloud to achieve cloud computing advantages while ensuring regulatory compliance, according to KBV Research.
The U.S. and Canada have taken the lead in introducing private cloud server solutions due to the increasing volumes of transactions and consequently the data in the country-based organizations. The European market is expected to witness a CAGR of 28.4% during (2019 – 2025). Additionally, The Asia Pacific market is experiencing growth rate of 31.8% during (2019 – 2025). This growth is fueled by the growing demand for private cloud server solutions that arises from small and medium-sized companies in the region.