A Virtual Private Server (VPS) is a virtual machine (VM) that runs its specific copy of an operating system (OS) placed in a computer. It is traded as a service by different internet hosting service providers. It operates autonomously from other virtual spaces that are on the same machine. VPS hosting is mostly preferred by enterprises that wish to upgrade from shared hosting due to the need for more resources and control over the website. VPS is also used in data centers as it eliminates power consumption, cooling, and availability concerns.
The virtual private server market is driven by the increasing emphasis of enterprises on secured hosting. Growing security concerns of enterprises against cybersecurity breaches is expected to drive the market growth during the forecast period. Furthermore, evolution of virtualization is boosting the growth of the virtual private server market. The global virtual private server market is expected to grow prominently during the forecast period due to the rapidly growing demand for VPS due to its benefits such as shared cost of services and complete OS access. VPS helps in meeting varying business requirements, VPS can be scaled up and down easily by adding and reducing the resources. As per requirement, the enterprise can vary RAM, CPU, bandwidth, and storage resources to meet particular requirements.
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However, limited availability of physical resources is affecting the large-scale adoption of virtual private servers. Furthermore, in unmanaged VPS hosting, the user needs to have strong technical expertise in terms of server security, maintenance, and software updates. Thus, the lack of technical expertise and unavailability of physical resources is limiting the growth of the market.
A key opportunity boosting market growth is the increasing deployment of Windows based servers. VPS is attracting a large customer base due to its cost-effectiveness, flexibility, scalability, and massive processing power. Furthermore, varying hosting processes are also changing the way virtual private servers are being used.
The virtual private server market is segmented on the basis of operating system, enterprise size, and end-use industry. Based on operating system, the market has been segmented into Linux and Windows. In terms of enterprise size, the market has been segmented into small & medium enterprises, and large enterprises. Based on end-use industry, the market is segmented into IT & telecommunication, BFSI, retail, medical & healthcare, manufacturing, government, and others. IT & telecom industry segment is expected to grow significantly during the forecast period. This is due to the advent of Big Data which requires secured hosting in order to avoid data loss
From a regional point of view, North America is estimated to hold a major share in the virtual private server market. Growth in this region is credited to robust adoption and penetration of virtual private servers, as well as considerable application of virtual private servers in diverse end-user industry segments. Asia Pacific is anticipated to observe lucrative growth due to growing adoption of virtual private servers by developers in countries such as China, Japan, and India that are emphasizing on development of strong internet infrastructure and digital technology which is offering huge opportunities to vendors in the market. Furthermore, the markets in South America and Middle East &Africa (MEA) are also likely to grow significantly during the forecast period. Growing awareness and adoption of virtual private servers across Middle East & Africa and South America is offering new opportunities for key players operating in the global virtual private server market.
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Major vendors are spending huge amounts in virtual private server tools since the market is growing rapidly. Furthermore, technological developments and rising trend of secured web hosting is boosting the adoption of a wide-ranging variety of virtual private servers. Moreover, predominant software vendors are enhancing their sales and distribution networks in order to reach the most distant clients. Key players profiled in the virtual private server market report include Amazon Web Services, Inc., DreamHost, LLC, Endurance Group, GoDaddy Operating Company, LLC, Kamatera, Inc., OVH, Rackspace US, Inc., Savari Technologies Pvt. Ltd (MediaStroke), TekTonic, and United Internet AG.
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