Increasing adoption of cloud-based services among global organizations is expected to create a wide range of growth opportunities for VPS vendors. With increasing virtualization, Small and Medium Enterprises (SMEs) are largely embracing both private and public cloud services to transform their business processes.
Virtual Private Server Market enables organizations avail dedicated servers in the virtual environment. The approach provides enhanced control over servers, agile deployment of virtualized workloads, reduced infrastructure cost, and improved operational efficiency.
The VPS market has been segmented by organization size into large enterprises and SMEs. Currently, the market share of the large enterprises segment is estimated to be higher; however, the market size of the SMEs is expected to grow at a higher CAGR in the coming years. The growing awareness of the benefits of VPS, and the business expansions by global vendors in the SMEs are expected to be the driving factors for the growth of VPS market. Large enterprises can allocate sufficient budgets and the required technical expertise to implement the latest VPS technology and stay ahead of the competition. Hence, the large enterprises segment is expected to hold a higher market share in the overall market,
The retail vertical is one of the fastest-growing verticals with respect to adopting new and innovative technologies, such as VPS, cloud computing, big data analytics, DevOps, digital stores, and social networks. The main growth factor is the increasing purchasing power of customers and the need to meet their requirements for customer retention and acquisition.
Online retailing and cloud technologies have significantly disrupted the retail and consumer goods vertical, leading to the adoption of VPS solutions and services, mainly for storage, backup, security, computing, and disaster recovery.
Asia Pacific (APAC) is expected to witness a notable adoption of the technology, as large enterprises and SMEs across industry verticals are now adopting VPS solutions owing to its numerous advantages that it offers over traditional and physical servers. Additionally, the emergence of many startups within the VPS market across the APAC region is expected to drive the market.
Rising awareness of data management through a common interface at reduced total cost of ownership, growing focus on Virtual Desktop Infrastructure (VDI), server virtualization, and popularity of using IaaS solutions are major growth drivers for the VPS market in APAC.
