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 cyber attack, human error, or natural disaster.

RaaS is a way to outsource data recovery in-house, allowing organizations to experience the benefits of data recovery without having to dedicate IT resources to it.

See below to learn all about the RaaS market:

RaaS market

The RaaS market it was estimated to be worth $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 at the end of it.

The backup and recovery segment of the market will reach $9.3 billion in 2027, with a CAGR of 33.9%. The real-time data replication segment is forecast to have a CAGR of 30.9%.

Regionally, the global market is segmented as follows:

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

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

Other notable industries in the market include:

  • IT’S
  • 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 it to an outside vendor.

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

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.

The service provider takes care of everything from protecting data infrastructure resources, both in the cloud and on-premises, performing regular disaster recovery tests to validate work operations, and performing recovery when needed.

Assisted RaaS

Assisted RaaS offerings allow greater customer 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 divided 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 in charge of 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 the customer with the information and tools necessary to perform and configure the backup and disaster recovery process.

This type requires the most involvement from the IT department, as they may need to build some processes from scratch, such as data replication, data mirroring, and data recovery scripts.

Benefits of RaaS

RaaS solutions offer a variety 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:

  • Free up the IT team
  • Pay-as-you-go subscription models
  • Economic
  • Speed ​​up data recovery time
  • Promotes flexibility and scalability of recovery systems
  • Increases reliability of backup and recovery
  • Reduce redundancies

The importance of a data recovery plan

With customer data playing a major role in business, the cost of a data loss incident has also skyrocketed.

Surveys show that 93% of businesses go out of business within a year of experiencing 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 risks is a company’s first line of defense,” according to a post in Diverse Services.

“A disaster recovery plan is a step-by-step plan that has documented a structured approach to responding to disasters. Across business as usual, taking action on board to identify the most critical IT data and services is the first step in planning.”

RaaS Use Cases

RaaS solutions for disasters in all 3 types can be tailored to meet the needs of individual organizations, from small businesses to mega-corporations.

See the examples below that highlight how organizations in 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 phone and network services.

Mitel worked to manage its sprawling IT environments and the massive amounts of siled data they produce. Focusing more on its security, stability, and scalability, Mitel needed a way to protect its data.

Choosing to work with Google Cloud and RiverMeadow, a leading partner, Mitel acquired several cloud data storage, operations and disaster recovery solutions.

“We wanted to take advantage of all the Google Cloud services, like VM Snapshots, the operations suite, Cloud Storage, disaster recovery, and more.” says Rick CiriglianoSenior Vice President of Cloud Operations, Mitel Networks.

“VMware Engine and Compute Engine introduced an integrated approach to production and non-production environment migrations that we expected to complete.”

With Google Cloud and its partner, Mitel scaled monthly operations 4x faster, accelerated time to market for its services, and improved its security posture and disaster recovery capabilities.

Hyundai Heavy Industries

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

HHI has become a leading manufacturer of industrial robots, controllers, and cleaning robots.

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

By partnering with IBM Business Resiliency Services, HHI implemented a proactive response framework covering 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 regional and global disaster recovery experience.” Says Jung Hun SeoCIO, ICT Innovation Center at Hyundai Heavy Industries.

Partnering with IBM, HHI blanketed 292 application systems with IBM RaaS solutions for disasters and established a disaster recovery center designed to withstand magnitude 7+ earthquakes.

NTT Netmagic

NTT Netmagic is part of NTT Company and a leading provider of managed hosting and hybrid cloud services in India.

They operate three research and development centers and 10 data centers in five Indian cities, serving more than 2,500 business 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 resolve their backup failures, long backup windows, and inefficient disaster recovery process.

Working with Commvault, NTT Netmagic implemented Commvault Complete Backup & Recovery in its data centers, as well as Commvault Professional Services for its data migration.

“Compression and deduplication features with Commvault reduced the size of storage consumption by 35% and reduced storage costs by $300,000 per year.” Ashwin Bhadra saysassistant general manager, products and services for backup, disaster recovery and storage, NTT Netmagic.

“Commvault’s rich features and cloud integration capabilities have enabled us to embark on our hybrid cloud strategy, be a custodian of data and get data availability status across all services.”

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

RaaS providers

Some of the top RaaS providers on the market include:

  • Wind current
  • broadcom
  • aws
  • Verizon
  • IBM
  • Microsoft
  • google cloud

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