AWS and Rackspace are Renowned Player in the Application Hosting Market- Report by MarketsandMarkets™

According to recent research "Application Hosting Market by Hosting Type (Managed, Cloud, & Colocation), Service Type (API Management, Database Administration, Backup & Recovery, Application Security), Application Type, Organization Size, Vertical, and Region - Global Forecast to 2022", The global application hosting market size is estimated to be valued at USD 40.81 Billion in 2017 and is projected to reach USD 72.50 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 12.2% during the forecast period. The major factors expected to drive the growth of the application hosting market include the availability of comprehensive hosting solutions with an array of complementing services over the core offering, and the software-centered competitive advantage approach.

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The web-based application type is estimated to hold the larger market share in 2017.

The web-based application type is expected to have the larger market share in the application hosting market, due to the presence of a large number of enterprise web applications, which are deployed globally. Web-based applications are cost-effective in comparison to mobile-based applications and help organizations achieve their business objectives. Web-based applications are still the preference of SMEs for sharing information and providing services to their clients.

The retail and eCommerce vertical is expected to grow at the fastest rate during the forecast period.

The retail and eCommerce vertical is expected to register the highest CAGR during the forecast period. Enterprises in this vertical are adopting the mobile-first approach and are continuous incorporating various technologies to enhance the customer experience. Latency, scalability, and maximum uptime are the major concerns for enterprises in this vertical. Furthermore, they have to follow various regulations, as their applications comprise user and financial data of significance. Therefore, enterprises in this vertical are investing wisely to fulfill their business objectives.

The large enterprises segment is expected to have the larger market share during the forecast period.

The large enterprises segment is expected to have the larger market size during the forecast period. Large enterprises are highly focused on data security and data security compliances; they are investing heavily in securing the external hosting infrastructure and associated services. They are also deploying various customer-centric and business-centric applications to gain a competitive advantage over their competitors.

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North America is expected to have the largest market share during the forecast period.

North America is expected to hold the largest market share during the forecast period, due to the high concentration of application hosting providers in this region. Furthermore, the adoption of cloud hosting among companies in North America is high. Startups and large enterprises are preferably hosting their applications on the cloud. Furthermore, this region has a large number of colocation data centers that are supporting the growth of the application hosting market in this region.

The major vendors covered in the application hosting market include AWS (US), IBM (US), Rackspace (US), Google (US), Liquid Web (US), Microsoft (US), Sungard AS (US), DXC (US), Apprenda (US), and Navisite (US).

AWS has adopted a strategic mix of organic and inorganic growth strategies, such as new product launches, and mergers and acquisitions, in the application hosting market. In 2017, AWS announced a new bare metal instance offering for Amazon EC2 and introduced a new storage optimized instance family (H1 instances).

Rackspace has also adopted a mix of organic and inorganic growth strategies. For instance, in 2017, Rackspace announced the acquisition of Datapipe, a US-based firm and a leading provider of managed hosting services and data centers, to increase its presence in the professional services and traditional colocation services space. The acquisition helped the company establish itself as one of the market leaders and also focus on reliability, security, and support to create a new level of end-to-end customer experience. Furthermore, Rackspace has been significantly offering enhanced services to its existing customers, to retain and maintain healthy relations.

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