A recently published report projects that the global StaaS market will grow at an impressive compound annual growth rate (CAGR) of 17% between the forecast years of 2020 and 2030 as syncing, sharing, collaboration, and accessibility to data over smartphones and other devices gets simplified.
In a new report developed by Future Insights, storage as a service (STaaS) has been identified as one of the fast-growing cloud applications in recent years, especially as businesses continue to explore its potential in making operations flexible at reduced operating costs. The disruption created by cloud services across industry verticals has doubled productivity through automation, bringing down costs and improving services. This particular attribute surfaced as an axis for growing adoption of SaaS across verticals.
STaaS primarily helps to store copious amounts of data on cloud instead of on-premise, giving the organizations free space and less hassle of backing it up and investing in disaster management contingent plans.
As international business expands at a breakneck speed, companies are expected to invest in STaaS to ensure transactions are not bound to geographical locations. Furthermore, advantage of automated software backup to ensure data remains safe at all times is likely to assure the vendors in this market a guaranteed client base throughout the forecast years. Seamless business productivity and smooth transition of remote working capabilities as the world decides a new normal will push this market to leap ahead, predict analysts.
Key Takeaways of Storage as a Service Market Study
- SMEs to hold 74% of market share in 2020 as the adoption of STaaS becomes essential to cutting back on infrastructural cost and focus on business continuity
- BFSI segment held a market share of 22% in 2019 and is expected to continue on a similar trend as banking gets digitized even in rural clusters – South Asia & Pacific to register a CAGR of 23% 2020-2030 in the global STaaS market as countries undergo rapid digitalizing across sectors – Cloud computing and remote work ethic to remain strong undercurrents of booming STaaS market
“In this ever-changing technology landscape, businesses are continuously looking for cost-effective and efficient solutions that can reduce the burden of legacy systems. With the outbreak of COVID-19, the need to reduce CapEx and OpEx and make a smooth transition to remote work culture is expected to create potential opportunities for the storage as a service market,” comes from the COVID-19 Impact Analysis on Storage as a Service Market.
The outbreak of COVID-19 highlighted the need for businesses to adapt quickly to remote working options, pushing them to change their technological landscape to ensure business continuity during the pandemic. As the trend continues to rise, companies are expected to invest in technology-based infrastructure in the coming years. Also, the sudden spotlight on reduction in operation costs such as electricity and rents has made business realise the true contribution of SaaS in improving profit margins.
According to International Labour Organization (ILO), prior to COVID-19 outbreak only 2.9% of global workforce worked from home. However, in a post-pandemic world, managers are reassessing their operating methods, leading to an explosion in the percentage of those working from home.
In light of this trend, post COVID-19, the demand for cloud-based solutions and applications is expected to surge as businesses around the globe will look for cost-effective, efficient, and resilient solutions for their business continuity. Furthermore, strengthening sentiment to go remote permanently is also expected to give this market an impetus like never before.
The storage as a service market grew around 15% Y-o-Y in 2018 and 2019 and with the outbreak of COVID-19, the market is expected to witness a growth rate of around 18%-20% during 2021-2023.
In the short-term, the storage as a service market may face challenges in maintaining the growth rate as the budget concerns, declining profitability and sales growth, have resulted in severe losses for businesses of all sizes. However, the long-term outlook for storage as a service market remains positive as the market is projected to see a 4.5x growth during the forecast period.
Partnerships and Innovations to Drive Growth
Ever-changing technological landscape, customer expectations, and intensive competition are creating a storm in the global Storage as a Service market, which is compelling solution providers to continuously look for innovating and cost-effective solutions. Moreover, collaborations and partnerships with digital solution providers can also help Storage as a Service solution providers to enhance their market share and customer base.
For instance, in March 2020, Pure Storage and SAP entered into the partnership to offer customers with joint competency centers, technical support, and technology integrations in areas of STaaS, intelligent enterprise, cloud computing, storage and virtualization.