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Over 35% Demand for Hosting Services Emerging from APAC, Reports Technavio
[October 20, 2016]

Over 35% Demand for Hosting Services Emerging from APAC, Reports Technavio


According to Technavio's procurement market intelligence report on the global hosting services, the market is expected to grow at a CAGR of more than 13% during the next four years.

The research study covers the present scenario and growth prospects of the global hosting services until 2020. The top key suppliers listed in the report include Endurance, GoDaddy, AWS, OVH, and Rackspace (News - Alert).

Since technology and innovation play a vital role in the hosting services sector, most global service providers are adopting virtualization and cloud platforms to improve scalability, cost-effectiveness, and retention of clients, especially in an increasingly competitive market. Hyperconverged infrastructure is one of the fast-trending innovations in the market that helps suppliers integrate storage, network, and computing into one system.

According to Angad Singh, a procurement intelligence specialist at Technavio, "The exponential surge in data volumes and web traffic has substantially increased the vulnerability of web hosting servers. Also, several large organizations face data security and scalability challenges, and are actively focusing on implementing measures to enhance server security and improve scalability by adopting next-gen technologies."

Request a sample report: http://www.technavio.com/request-a-sample?report=53694

Category spend intelligence research analysts highlight the following four factors that are contributing to the growth of the global hosting services:

  • Increased adoption of web servers by SMEs
  • Rise in demand from MMO gaming sector
  • Growth of e-commerce market
  • Need to reduce website maintenance costs


  • Increased adoption of web servers by SMEs

    Web presence is considered a critical contributing factor for the success of businesses, as it helps them reach customers faster and more efficiently. This is leading to widespread adoption of web servers by SMEs, which is increasing demand for hosting services.


    Geographically, APAC accounts for most of the demand (35%-40%) for hosting services from SMEs, followed by the Americas (30%-35%).

    Rise in demand from MMO gaming sector

    The online gaming market is expected to reach USD 1.9 billion by 2017. Game developers lack the ability to host games on their own or to meet increased demand across the globe, which is increasing their dependence on third-party game hosting service providers.

    For instance, large MMOG developers, such as Blizzard and Activision (News - Alert), are dependent on third-party service providers for game hosting services.

    Growth of e-commerce market

    By 2020, the e-commerce market is expected to grow exponentially and generate a revenue of USD 3.5 trillion. To meet this demand, e-commerce companies are looking to outsource maintenance and operational aspects of commercial websites due to lack of in-house expertise. This is triggering demand for e-commerce hosting service providers.

    Need to reduce website maintenance costs

    Businesses across markets are focusing on reducing website TCOs. They are also focusing on reducing hidden costs associated with web-based technology and infrastructure. This is prompting them to outsource their hosting service requirements.

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    About Technavio

    Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

    Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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