Service center

The recovery as a service (RaaS) market in 2022

Recovery as a Service (RaaS) is used to back up and restore data from an application, database, or storage system in the event of damage due to a cyberattack, human error, or disaster natural.

RaaS is a form of outsourcing data recovery in-house, allowing organizations to reap the benefits of data recovery without having to devote IT resources to it.

See below for all about the RaaS marketplace:

RaaS market

The RaaS market was estimated at $3.1 billion in 2020. It is expected to maintain a compound annual growth rate (CAGR) of 35.8% from 2020 to 2027, reaching a value of $26.5 billion by the end of 2020. this one.

The backup and recovery segment of the market is expected to reach $9.3 billion by 2027, growing at a CAGR of 33.9%. The real-time data replication segment is expected to show a CAGR of 30.9%.

Regionally, the global market is segmented as follows:

  • The US market was estimated at $938.4 million in 2020, with a share of 30.2%
  • The Chinese market is expected to grow at a CAGR of 33.9%, reaching $4.3 billion by 2027
  • Japan and Canada are expected to grow at a CAGR of 32.2% and 30.6% during the forecast period
  • In Europe, Germany is expected to maintain one of the highest CAGRs at 24.4%
  • The Asia-Pacific market, dominated by India, Australia and South Korea, is expected to reach $3.3 billion by 2027

By industrythe banking, financial services and insurance (BFSI) industry is driving demand in the RaaS market.

Other notable industries in the market include:

  • THIS
  • Telecommunications
  • Retail and consumer goods
  • Government
  • Health care
  • Media and entertainment

RaaS features

If an organization does not have the IT resources to implement and manage its own backup and disaster recovery needs, it can outsource them to a third-party vendor.

There are several types of recovery-as-a-service offerings, depending on the level of involvement the customer wants in the process and expertise:

Fully managed RaaS

With fully managed RaaS offerings, the third-party service provider is responsible for the entire backup and disaster recovery process, with little involvement from the customer side.

The service provider manages everything from protecting data infrastructure resources, both in the cloud and on-premises, to performing regular DR testing to validate work operations and performing recovery if necessary.

Assisted RaaS

Attended RaaS offerings allow the customer greater control and authority over the backup and disaster recovery process than fully managed services. However, few companies offer the service.

In the assisted model, responsibilities are split between the third-party service provider and the customer. In most scenarios, the RaaS provider acts as an advisor and supervisor, responsible for the infrastructure and data replication, while the customer remains responsible for the integration, validation, and testing processes.

Self-managed RaaS

Self-managed RaaS offerings are the closest to a do-it-yourself solution. The service provider provides a customer with the information and tools needed to conduct and configure the backup and disaster recovery process.

This type requires the most IT involvement, as it may need to create certain processes from scratch, such as data replication, data duplication, and data recovery scripts.

Benefits of RaaS

RaaS solutions offer a range of benefits to the organizations that use them, compared to relying solely on in-house expertise and resources.

Some notable benefits of RaaS offerings include:

  • Frees up the IT team
  • A la carte subscription models
  • Profitable
  • Speeds up data recovery time
  • Incentivizes flexibility and scalability of recovery systems
  • Improves backup and restore reliability
  • Reduces redundancies

The importance of a data recovery plan

With customer data playing such a huge role in businesses, the cost of a data loss incident has also skyrocketed.

Surveys show that 93% of businesses shut down within a year of a major data disaster, while 96% of businesses with a reliable disaster recovery plan were able to fully recover.

“Understanding your vulnerabilities, preparing for the worst and protecting against risk is a company’s first line of defense.” according to a post from Diverse Services.

“A disaster recovery plan is a step-by-step plan that has documented a structured approach to responding to disasters. As part of business operations, as usual, the first step in planning is to take integrated steps to identify the most critical IT services and data.

RaaS Use Cases

Disaster RaaS solutions in all 3 types can be tailored to meet the needs of individual organizations, from small businesses to megacorporations.

Check out the examples below that highlight how organizations across different industries are using RaaS solutions:

Mitel Networks Corporation

Mitel Networks Corporation is a provider of telecommunications and UCaaS services to more than 70 million business users in 100 countries. It offers solutions ranging from public, private and hybrid cloud communications to cloud-based network and telephony services.

Mitel has struggled to manage its sprawling computing environments and the massive amounts of siled data they produce. Focusing more on their security, stability, and scalability, Mitel needed a way to secure their data.

By choosing to work with Google Cloud and RiverMeadow, a Premier Partner, Mitel has acquired various cloud data storage, operations and disaster recovery solutions.

“We wanted to take advantage of all Google Cloud services, such as VM Snapshots, Operations Suite, Cloud Storage, Disaster Recovery, etc.” says Rick CiriglianoSVP of Cloud Operations, Mitel Networks.

“VMware Engine and Compute Engine presented an integrated approach to the non-production and production environment migrations we were hoping to achieve.”

With Google Cloud and its partner, Mitel scaled monthly operations four times faster, accelerated time to market for its services, and improved security and disaster recovery capabilities.

Hyundai Heavy Industries

Hyundai Heavy Industries (HHI) is one of South Korea’s largest suppliers of shipbuilding, heavy equipment, machinery and petroleum.

HHI has become a leader in manufacturing industrial robots, controllers and cleaning robots.

Suffering severe damage to its data centers after a 5.8 magnitude earthquake, the company sought a more reliable and resilient data backup and recovery solution.

In partnership with IBM Business Resiliency Services, HHI has implemented a proactive response framework that covers its core systems, including a disaster recovery system and strategy.

“HHI chose to partner with IBM Business Resiliency Services for strategic disaster recovery operations based on IBM’s extensive experience in regional and global disaster recovery,” says Jung Hun SeoCIO, ICT Innovation Center at Hyundai Heavy Industries.

By partnering with IBM, HHI covered 292 application systems with IBM RaaS disaster solutions and established a disaster recovery center designed to withstand magnitude 7+ earthquakes.

NTT Netmagic

NTT Netmagic is part of the NTT company and is one of the leading managed hosting and hybrid cloud service providers in India.

They operate three research and development centers and 10 data centers in five Indian cities and provide their services to over 2,500 corporate clients across the country.

As one of the largest cloud service providers in the region, NTT Netmagic needed a more stable, secure and scalable data protection solution. They sought to address their backup failures, long backup windows, and inefficient disaster recovery process.

Working with Commvault, NTT Netmagic deployed Commvault Complete Backup & Recovery in their data centers, in addition to Commvault professional services for their data migration.

“The deduplication and compression features with Commvault reduced the size of storage consumption by 35% and storage costs by $300,000 per year”, says Ashwin BhadraDeputy General Manager, Backup, Disaster Recovery and Storage Products and Services, NTT Netmagic.

“Commvault’s rich features and cloud integration capability allowed us to embark on our hybrid cloud strategy, be a data custodian, and achieve data ready status across all services.”

With Commvault, NTT Netmagic was able to reduce its data backup window from two days to eight hours and saw a 35-40% improvement in resource management efficiency.

RaaS Providers

Some of the leading RaaS vendors in the market include:

  • Air flow
  • Broadcom
  • AWS
  • Verizon
  • IBM
  • Microsoft
  • Google Cloud