The application hosting market size is estimated to be valued at USD 40.81 Billion in 2017 and is projected to reach USD 72.50 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 12.2% during the forecast period. The major factors expected to drive the growth of the application hosting market include the availability of comprehensive hosting solutions with an array of complementing services over the core offering, and the software-centered competitive advantage approach.
The key market players profiled in this report include AWS (US), IBM (US), Rackspace (US), Google (US), Liquid Web (US), Microsoft (US), Sungard AS (US), DXC (US), Apprenda (US), and Navisite (US). These players offer application hosting services to cater to the needs and demands of enterprises. They have adopted various growth strategies, such as mergers and acquisitions; partnerships, agreements, and collaborations; business expansions; and new product launches. Among the growth strategies, “agreements and partnerships” has been the major growth strategy followed for business growth.
AWS has adopted a strategic mix of organic and inorganic growth strategies, such as new product launches, and mergers and acquisitions, in the application hosting market. In 2017, AWS announced a new bare metal instance offering for Amazon EC2 and introduced a new storage optimized instance family (H1 instances). The new product launch enhanced its capabilities in application hosting and also helped attract new customers. In line with the inorganic growth strategy, in August 2017, AWS collaborated with VMware, a US-based firm and a global leader in cloud infrastructure and the digital workspace technology, to support hosting applications and add value to AWS’ businesses through the combination of VMware’s enterprise capabilities. Furthermore, the company has expanded its business by opening new data centers in France and Canada. This expansion would help the potential customers of AWS run their technology applications from the infrastructure located in France and Canada.
Rackspace has also adopted a mix of organic and inorganic growth strategies. For instance, in 2017, Rackspace announced the acquisition of Datapipe, a US-based firm and a leading provider of managed hosting services and data centers, to increase its presence in the professional services and traditional colocation services space. The acquisition helped the company establish itself as one of the market leaders and also focus on reliability, security, and support to create a new level of end-to-end customer experience. Furthermore, Rackspace has been significantly offering enhanced services to its existing customers, to retain and maintain healthy relations.
Application Hosting Market by Hosting Type (Managed, Cloud, & Colocation), Service Type (API Management, Database Administration, Backup & Recovery, Application Security), Application Type, Organization Size, Vertical, and Region - Global Forecast to 2022
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