Virtual Private Cloud (VPC) Market size is set to gain traction from 2021 to 2027 owing to the continuous advancements in the IT sector and the incessant need for automation in enterprises. The growing obligation for easy installations as well as low-cost maintenance of processes has led to the increasing efforts on cost savings. The rising demand for cybersecurity and agility will further anchor the expansion of the market.
Virtual private cloud is mainly a cloud computing service that offers enhanced performance and flexibility at lower costs and durations in comparison to various other cloud services. However, the dearth of awareness and the rising concerns over compatibility with legacy systems may hinder industry forecast to some extent.
Based on the enterprise size, large enterprises are expected to bring substantial remuneration for the VPC industry on account of the increasing amount of data and the higher necessity for effective storage and management. The running of different applications in large businesses has paved the path for increased flexibility. Virtual private cloud solutions not only offer performance improvements in terms of deploying resource-intensive applications but also offer cost savings. The rising trend of mobility in organizations will further favor virtual private cloud market growth.
With regards to vertical, the BFSI sector is anticipated to see optimum adoption of virtual private cloud with the surge in real-time mobile payment services. The higher requirement for simplified transactions has led to the emergence of various customer-centric models. The increasing presence of digitalization initiatives and the growing concerns over recovery, data storage, and cybersecurity in BFSI enterprises will additionally enhance the industry application outlook.
In terms of regional segmentation, the North America VPC market is likely to observe inclination through 2027 given the influx of several cutting-edge technologies and the growing expenditure on cloud services in the region. The robust presence of some leading technological participants will further drive regional market penetration.
Asia Pacific will record significant revenue for the virtual private cloud industry driven by the rise in technology transformation programs and the strong economic advancements in China and India.
The virtual private cloud market is highly competitive and amalgamates the presence of major players, that include Oracle Corporation, CenturyLink, Inc., Huawei Technologies Co. Ltd. (Huawei Investment & Holding Co., Ltd.), Alibaba Group Holding Limited, SAP SE, Atos SE, NetApp, Inc., Rackspace Inc., VMware, Inc. (Dell Technologies), Cisco Systems, Inc., AWS, and OVH (OVH Groupe SAS).
These bigwigs are actively undertaking strategic partnerships, including mergers and acquisitions, as well as focusing on incorporating the latest technologies in their offerings to come up with innovations in a bid to reinforce their competitive position and global presence.
For instance, in February 2021, IBM joined forces with Vodafone to roll out a new private cloud offering, Vodafone Virtual Private Cloud, to assist the Portuguese enterprise customers of Vodafone with scalability, efficiency, and security in their businesses.
In another instance, Dell Technologies, in February 2021, launched a new private cloud service via Project Apex. Through the launch, Dell Technologies Cloud Platform will offer its customers the ability to scale up or cut out their IT infrastructures.
The crippling effects laid out by the ongoing COVID-19 crisis not only ruptured the global economy but also gave way for a host of trade limitations and disrupted supply chains across hundreds of businesses. However, it proved as a potential booster for the virtual private cloud sector on account of the influx of remote working and the higher incorporation of digitalization in companies.
According to some recent surveys, there is a significant dependency on private cloud services to meet the requirement for enhanced data security and disaster recovery.