Global Anything-as-a-service Market 2016-2020

Overview of the global anything-as-a-service (XaaS) market

Technavio’s market research analyst predicts the global anything-as-a-service (XaaS) market to grow at a high CAGR of more than 38% by 2020. One of the primary drivers for the growth of the XaaS market size is the shift towards the operational expenditure (OPEX) model to manage IT infrastructure at reduced costs. This shift has boosted the adoption of XaaS solutions among enterprises as these cloud solutions facilitate pay-per-use pricing model, where the clients pay only for what they use. Also, enterprises are opting for XaaS model, as it shifts the risk and resource requirements associated with the operation, backups, updates, and infrastructure maintenance from the internal IT department to vendors or service providers. The rising need to carry out a wide array of IT operations at affordable costs is propelling organizations to shift to a cloud-based infrastructure, which will boost this XaaS market’s growth during the forecast period.

An interesting XaaS trend gaining prominence in this market is the surging requirement for virtualization of IT solutions, which includes data center virtualizations and network virtualizations. Network functions virtualization (NFV) virtualizes network functions, such as firewalls, load balancers, and intrusion detection devices. It also helps to achieve scalability, low capital expenditure (CAPEX), and smooth service deployments among enterprises. The high demand for server virtualization, storage virtualization, and networking virtualization will augment the adoption of virtualization networks among enterprises over the next few years.

Segmentation by services and analysis of the XaaS market

• STaaS
• SECaaS
• UCaaS
• NaaS
• DBaaS
• BaaS

Storage-as-a-service (StaaS) will be the fastest-growing service segment in the XaaS market, and is expected to grow at a high CAGR of more than 40% by 2020. STaaS enables companies to store data in the cloud and in an archived format.  It is a highly cost-effective solution where the enterprises only pay for the utilized storage capacity. The growing demand for better storage solutions among enterprises to manage their massive data volumes will propel the growth of this segment in the coming years.

Geographical segmentation and analysis of the XaaS market

• Americas
• APAC
• EMEA

During 2015, the Americas dominated the XaaS market and accounted for more than 49% of the total market share. Much of this region’s growth comes from the increased adoption of cloud services across several sectors, the presence of large enterprises, availability of high-speed broadband networking, and an increase in the number of hosted servers. The growing popularity of cloud computing and BYOD policy will boost the adoption of XaaS solutions in this region.

Competitive landscape and key vendors

This market is highly fragmented and dominated by numerous international players. Vendors in the market are focusing on increasing their profit margins by providing extended services, which include STaaS, SECaaS, MaaS, DRaaS, DBaaS, DaaS, NaaS, UCaaS, BPaaS, BaaS, and others integrated with mobile, and web services. The level of competition in the XaaS market is expected to intensify with several cloud-service providers entering acquisitions and partnerships to increase their market reach. 

Key vendors in the market include -

• AWS
• Cisco
• Google
• IBM
• Microsoft

Other prominent XaaS providers are Alcatel-Lucent, AT&T, Avaya, BigSwitch, CipherCloud, CommonVault, Dell, enStratus Networks, Ericsson, HP, Intel Security (McAfee), Juniper Networks, M5 Networks, National Electric Corporation (NEC), Oracle, Orange Business Services, Rackspace, RightScale, Salesforce.com, Symantec, Thinking Phone Networks, Verizon Enterprise Solutions, and VMware.

Key questions answered in the report include

• What will the XaaS market size and the growth rate be in 2020?
• What are the key factors driving the global XaaS market?
• What are the key market trends impacting the growth of the global XaaS market?
• What are the challenges to the XaaS market growth?
• Who are the key vendors in the global XaaS market?
• What are the market opportunities and threats faced by the vendors in the global XaaS market?
• Trending factors influencing the XaaS market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global XaaS market?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Global Software-defined Anything (SDx) Market 2016-2020
• Global STaaS Market 2015-2019
• Global Data Protection as a Service (DPaaS) Market 2015-2019
• Storage as a Service Market in the US - Market Research 2015-2019