Cost Saving Opportunities for the Global Disaster Recovery as a Service Market: Technavio

Cost saving opportunities in the DRaaS market from Technavio. (Graphic: Business Wire)

LONDON--()--According to the latest procurement intelligence report from Technavio, the global market for disaster recovery as a service (DRaaS) is expected to grow at an impressive CAGR of 40% over the next five years due to various regulatory changes across regions and the increasing awareness among buyers with respect to the impact of data loss.

The research report titled ‘Global Disaster Recovery as a Service Market: Procurement Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.

“The growing awareness among organizations about the effects of IT outage and the need for protection of digital information are leading to the growth of the global DRaaS market,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “In addition, increase in regulatory control and realization of benefits such as cost-effectiveness, testing flexibility, and decreased recovery time are other factors fueling market growth,” adds Angad.

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Cost saving opportunities in the DRaaS market

The adoption of various cost-optimization levers helps buyers of DRaaS realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).

Technavio procurement experts have segmented the cost saving opportunities in the DRaaS market into the following value-enhancement opportunities:

  • Adoption of technology
  • Supplier Competition
  • Adoption of negotiation strategies
  • Optimization of procurement practices
  • Bundling of services

Adoption of technology saving aspects

Technologies such as disk imaging, deduplication, server virtualization and hybrid cloud DraaS help enhance data security and minimize recovery costs, sometimes up to 15% of total category spend.

Large organizations prefer suppliers that can offer additional services such as backup space, recovery resources, and data backup sites to keep up with their ever-changing requirements. Buyers prefer service providers with multiple backup sites across locations as there is a possibility of natural disasters and network latency in the primary backup site, which could affect overall operations.

Adoption of negotiation strategies saving aspects

Optimization of resources is critical in the global DRaaS market. Organizations have concerns regarding the downtime of servers that leads to service disruptions. More than 50% of the Fortune 500 companies have server downtimes of about 1.5 hours per week, which results in an estimated loss of USD 100,000 per hour. Therefore, they prefer service providers that can provide 24/7 support services to minimize such downtime.

Bundling of services saving aspects

One of the most opportunistic strategic cost saving levers in the global DRaaS market is the bundling of DRaaS with IT professional services. Various regulations bind organizations. For instance, the US Government is required to follow the FISMA regulation (2002) to define their information security operations.

Therefore, DRaaS suppliers are required to be well-versed in related regulations and standards such as HIPPA, SOX, PCI DSS, and FISMA to help buyers reduce the associated management complexities.

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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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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770