Global Market for Business Continuity and Disaster Recovery Solutions and Services to Reach $ 61.7 Billion by 2017, According to a New Report by Global Industry Analysts,
San Jose, California (PRWEB) August 29, 2011
The discipline of risk management, in the corporate world, has undergone a rapid change over the past decade, successfully transitioning from an essentially back-office activity to become a crucial part of the overall enterprise management process. The significance of optimum risk management cannot be undermined, given the growing awareness of the impact of mismanagement of short term and long-term risks, which are typically manifested in the form of loss of market shares, investor confidence, reputation and market value of the enterprise. Winning back or recovering lost credibility in the marketplace is a painstaking task that requires time, effort, and money. It is therefore of little surprise that risk officers, over the last couple of years, have assumed an important role in management teams and wield considerable influence on the decision making process. Business continuity, a subset of risk management and a type of organizational planning, identifies the level of a company’s exposure to external and internal threats/risks to knit a business continuity plan (BCP) that will help the company stay afloat in the event of disasters (local, environmental and untoward business/national events). A part of an organization’s overall risk management strategy, BCP, which is flanked by crisis management and disaster recovery planning, stands to gain in the upcoming years.
While risk management is aimed at being preemptive, Business Continuity Planning (BCP) deals with the repercussions of the risks that were ignored previously. BCP is a step forward from the preemptive approach of risk management, and works on the assumption that an assumed crisis would eventually occur. Against a backdrop of a scenario where organizations are largely dependent upon IT solutions for gathering, storing, managing and using strategically important data, fear of system failures/data losses caused by natural calamities or man made errors remains critically high for IT administrators. With modern-day businesses displaying zero tolerance towards revenue impacting downtime and data losses, there exists fertile opportunities for the growth and proliferation of solutions that not only help businesses continue their operations in event of disaster, but also help them retrieve, rescue, and restore lost data in the event of a system crash.
Packed with capabilities such as effective storage, protection of critical information, retrieval of stored data as and when required, quick resumption of operations after a disaster, BC/DR solutions are becoming an integral part of every company’s strategic plans, particularly in information sensitive verticals such as healthcare, finance and government departments. With both natural and man made disasters becoming more frequent over the last few years, starting with Y2K bug and the US terrorist attacks early this century, to the more recent disasters such as Hurricane Katrina in the US, unrest in Middle East, earthquake in New Zealand and Tsunami in Japan, companies across the globe have been fast adopting BC/DR solutions as a proactive measure towards ensuring continued operations. Continuous increase in volume of digital data handled by new-generation businesses and the imminent fear of data loss and disruption of business operations, therefore, is proving to be a perfect business case for adoption of business continuity/disaster recovery (BC/DR) solutions.
Despite the popular perception that the dynamic environment of risk that companies operate in and the ever-present data security threats, which interestingly tend to escalate during periods of economic downturn, make BC/DR Solutions and Services market recession proof, the market ironically in the year 2009 depicted a marked weakening in the midst of a steady deterioration in business climate. The length, breath and duration of the economic slowdown has been unprecedented and the contraction in business activity widespread across diverse industries. The economic storm, in other words, wiped out numerous companies. And given the fact that the value of business continuity or disaster recovery, and risk management reduces in sync with rising risks of a company’s possible liquidation, demand for BC/DR solutions not surprisingly dipped to depressing levels. With the value of business continuity solutions being directly related to the probability of a company’s sustained survival into the future, the bleak future of a number of companies and their high odds against survival through the recession into the post recession period therefore took its toll on the market. Corporate failures were especially high in banking and financial services, BPOs, telecom, media & entertainment industries.
For the upcoming years, market prospects remain encouraging. Bailout and rescue packages offered by governments as succor to bleeding companies have largely helped companies in most industrial sectors like automotive and manufacturing make a successful turnaround. This coupled with the fact that chances of business failures are extremely high after a disaster in the absence of a business continuity plan will drive up adoption of BC/DR solutions in the post recession period. Also, increasing market penetration, continued innovation, spiraling competition will continue driving down prices of BC/DR solutions making them more affordable, thus expanding market opportunities to include small and medium scale businesses.
IT infrastructure upgrades in healthcare, educational, financial and government sectors will benefit the market in the upcoming years. Resurgence in business activity and improvement in IT infrastructure spends are primary factors that will help drive growth in the market over the next few years. Outsourcing business continuity projects to save on internal resources will gather momentum in the upcoming years. Also, the realization of the fact that it is easy to overlook business continuity during times of economic prosperity is brought full circle by the recent recession as mirrored in the deadly battlefield for a massive number of companies unprepared for the recession. Companies in the future will focus more dedicated resources into tested business continuity plans to ensure protection against future disasters.
As stated by the new market research report on Business Continuity and Disaster Recovery Solutions and Services, the US represents the largest regional market. Stringent regulatory mandates and intense Federal initiatives to promote adoption of BC/DR as a key strategy among organizations to safeguard the interest of overall economy has and will continue to boost market prospects for BC/DR solutions and services in the country. Business Continuity and Disaster Recovery Solutions represents the largest market segment, while Business Continuity and Disaster Recovery Services remain the fastest growing market segment waxing at a CAGR of more than 11% over the analysis period.
Large Enterprises represent the largest and the fastest growing business end-use sector for BC/DR solutions and services. Characterized by huge, heterogeneous and distributed operations with 24/7 functioning, large-scale enterprises often have huge volumes of data to be stored, safeguarded and retrieved, which makes them a market segment laden with tremendous potential. Stronger financial muscle to support end-to-end business continuity and disaster recovery projects additionally makes large enterprises a valuable customer cluster for BC/DR solutions and services.
Major players in the marketplace include Acronis Inc, Autonomy Corporation Plc, CA Technologies Inc., Cisco Systems Inc., Citrix Systems Inc, EMC Corporation, FalconStor Software Inc, Hewlett-Packard Company, IBM Corporation, ICM, NetApp Inc, Oracle Corporation, SunGard Data Systems Inc, Symantec Corporation, Vision Solutions Inc., and VMware, Inc.
The research report titled “Business Continuity and Disaster Recovery Solutions and Services: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues and growth drivers. The report provides market estimates and projections in US$ Million across all major geographic markets including US, Canada, Japan, Europe (France, Germany, Italy, UK, and Rest of Europe), Asia-Pacific, Latin America and Rest of World. Market Segments analyzed include BC/DR Solutions (BC/DR Software and BC/DR Hardware) and BC/DR Services. End-Use Business Sectors analyzed include Large Enterprises and Small & Medium Enterprises.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Business_Continuity_and_Disaster_Recovery_Solutions_and_Services_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.
Global Industry Analysts, Inc.
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