Cloud computing boosts infrastructure services hosting by 8%

cloud computing
Behind the cloud there is increasingly a hosting service for the infrastructure, often to bolster security. (Sensors)

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.

Free Daily Newsletter

Interesting read? Subscribe to FierceElectronics!

The electronics industry remains in flux as constant innovation fuels market trends. FierceElectronics subscribers rely on our suite of newsletters as their must-read source for the latest news, developments and predictions impacting their world. Sign up today to get electronics news and updates delivered to your inbox and read on the go.

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.

RELATED: AI chips sales to grow at 45.2% CAGR through 2025


Suggested Articles

Annual growth of 15% is expected for next decade according to Future Market Insights

New tech relies on time-of-flight sensor tech used in HoloLens combined with CMOS

With the rise of wearables, electronics are making their way into challenging environments unimaginable before, making protective coatings essential.