VPS helps organizations utilize dedicated servers in the virtual environment. It offers enhanced control over servers, agile deployment of virtualized workloads, reduced infrastructure cost, and improved operational efficiency. With the rise in virtualization, Small and Medium Enterprises (SMEs) are embracing both private and public cloud services for transforming their business processes. The adoption of cloud services has, in turn, boosted the demand for virtual private server market for hosting and supporting other critical business functions.
How does VPS work?
VPS hosting helps in stimulating the dedicated server experience even though the physical server is being shared with other users. The web hosting provider installs a virtual layer on top of the OS of the server that is using the virtualization technology, which then allows each user to install their own OS and software. Since the VPS segregates the files from other users on the OS level, it becomes a private server. This enables the website to live within a secure container with a guaranteed bandwidth, CPU, disk space, etc.
When is the right time to use VPS?
Virtual Private Server Market makes use of virtualization software for separating physical servers into several “virtual” servers, with each server having the ability to run its own OS and applications. VPS is rapidly becoming a hosting preference for advanced web developers who need access to the server for running their own software. The right time to upgrade to VPS is when –
- More speed is required – The speed of the website is likely to go down whenever more content is added to it, especially the ones that rely on database-related operations. Since the website traffic increases over time, the existing plans usually cannot manage the high traffic volume. Hence, upgrading to VPS hosting is the next logical solution to tackle such situations.
- Increased security concerns – It is often a problem when the website gets into a server that is being attacked by multiple other sites that are hosted there. In such a situation, relying on the host or switching to VPS is a possible solution to get around the problem.
- When a special or custom OS is needed – Any software can be installed or customized for optimizing the hosting experience with full root access to the OS. This flexibility is especially needed when a custom OS is to be installed.
- When there’s shortage of resources – If a website is continuously throwing 503-server errors; it means that the services are not available to the customers or website visitors. Another possible reason may be other users taking up the resources. This is when moving to VPS hosting will come into play.
How is the global VPS market progressing on a global level?
The global Virtual Private Server (VPS) market that was estimated to be USD 2.4 billion in 2018 in value is predicted to reach USD 5.0 billion by 2023, growing at a CAGR of 15.3% between 2018 and 2023. The growth of this market can be attributed to the availability of cost-effective VPS and the ability of VPS to provide greater customization and scalability and more control as compared to shared hosting. Besides, the rising adoption of cloud-based services among global organizations is anticipated to offer a wide range of growth opportunities for VPS vendors in the near future.
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How is the adoption of cloud-based services in SMEs boosting market growth?
Currently, the large enterprises segment holds the largest market share; however, the SMEs segment is expected to grow at a higher CAGR over the next few years. This growth can be contributed to the growing awareness of the benefits of VPS, and the business expansions by global vendors in the SMEs. The large enterprises can allocate sufficient budgets and the required technical expertise for implementing the latest VPS technology to stay ahead of the competition. Hence, the large enterprises segment is estimated to hold a significant chunk of the market share in the overall market.
Which industry is contributing to the growth of the VPS market?
Among all industry verticals, the retail industry is one of the fastest-growing verticals, owing to the rising adoption of new and innovative technologies, such as VPS, cloud computing, big data analytics, DevOps, digital stores, and social networks. This is mainly because of the increasing purchasing power of customers and the need to meet their requirements for customer retention and acquisition. The retail and consumer goods vertical is being significantly disrupted by online retailing and cloud technologies. This, in turn, has led to a rise in the adoption of VPS solutions and services, mainly for storage, backup, security, computing, and disaster recovery
Geographically, which segment is likely to be the leading market and why?
Among regions, Asia Pacific (APAC) is predicted to witness a considerable adoption of the VPS technology, since large enterprises and SMEs across major industry verticals are increasingly adopting VPS solutions, owing to its numerous benefits offered as compared to traditional and physical servers. Also, many emerging startups within the VPS market across the APAC region are expected to boost market growth. Furthermore, the growing awareness regarding data management through a common interface at a reduced total cost of ownership, focus on Virtual Desktop Infrastructure (VDI) and server virtualization, and popularity of IaaS solutions are the major factors driving the VPS market in the APAC.
Among countries, China, Japan, and India have shown great potential for the global VPS vendors because of the availability of significant proportion of end-user verticals, favorable economic conditions by extending services to these regions, multifold increase in the adoption rate of virtualization environment-based applications, and absence of intense competition for market entrants. Even though the APAC VPS market is still at its nascent stage, the increased organizational needs and popularity of workstation flexibility are expected to drive the VPS market in the years to come. The APAC region has always been cautious about investment plans in terms of funding, thus leading the enterprises in the region to turn towards the adoption of affordable VPS.
