Cloud computing has led to growth in the hosting of infrastructure services for those companies that don’t want to do the infrastructure work themselves.
The market for hosting infrastructure services will reach about $12 billion in 2019, up from $11 billion in 2018, according to new research by Future Market Insights,
The key reasons that companies opt for hosting services are the need for operational efficiency, low cost and enhanced security, FMI said.
In the financial services sector, a hybrid cloud model has emerged where the most critical processes are run in a private cloud with advanced security, while other apps are run in the public cloud where the costs are less and there is greater flexibility.
Managed hosting and colocation services are growing in the pay-per-use model as well, FMI said. Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) models are emerging.
The IaaS model is expected grow by 8% each year through 2018, FMI said. Companies in North America had one-third of the global market for hosting infrastructure services in 2018, or about $4 billion.