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'Dedicated' cloud IaaS market to skyrocket 100-fold by 2025

'Dedicated' cloud IaaS market to skyrocket 100-fold by 2025

Up from US$138 million in 2020.

Credit: Dreamstime

The global dedicated cloud infrastructure-as-a-service (DCIaaS) market is set to become an extremely lucrative market, with annual recurring revenues to skyrocket up to US$14 billion by 2025 — more than 100 times those seen in 2020.

Research firm IDC defines DCIaaS as compute and storage resources that are deployed on customer premises and consumed as a service, essentially a public cloud designed to operate outside of traditional data centre environments. 

As a  result, cloud service providers retain full ownership of underlying infrastructure hardware and software under the model, making them also responsible for delivery, updates and disposal at the end of subscriptions. 

IDC predicted in its Dedicated Cloud Infrastructure as a Service, 2019–2025: Market Trends and Outlook report that worldwide annual recurring revenues for DCIaaS offerings for compute and storage will jump up from US$138 million in 2020, to US$14 billion by the end of 2025, increasing by a compound annual growth rate (CAGR) of 151.8 per cent. 

"Increasing demand for service-based consumption of IT resources triggered a broad movement within the system vendor community to introduce a variety of offerings to fulfil this demand," said Natalya Yezhkova, research vice president for IT Infrastructure practice at IDC. 

"With dedicated cloud as-a-service solutions, enterprises have an opportunity to bring all of what they like about public cloud to their own premises while mitigating restrictions and concerns they have with moving infrastructure off-premises." 

The anticipated rise in the DCIaaS market comes as spending on dedicated cloud infrastructure rose by 14.7 per cent year-on-year during the first quarter of 2021, to US$4.8 billion, with 45.5 per cent of this deployed on customer premises, according to data published by the firm earlier this week.

By the end of the year, spending is expected to rise by 14.7 per cent to US$22.7 billion, while its longer-term prospects see it growing at a CAGR between 2021 and 2025 of 13.1 per cent. 

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