Transparency Market Research

Dedicated Server Hosting Market:Rise in Number of Security Breaches Are Expected to Drive the Expansion of the Dedicated Server Hosting Market

Dedicated Server Hosting Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2026


Albany, NY -- (SBWIRE) -- 03/16/2019 -- Hosting service providers play a major role when it comes to the distribution of enterprise online content to the target audience. Hosting servers enable the storage of online content and website information securely. In shared hosting, physical servers and other resources such as RAM, bandwidth, and storage are shared with other subscribers. The amount of disk space and bandwidth allocated is limited as it is shared in multiple users. That means if the user or website on the same server is under attack due to data breach that could lead to a threat to other shared users. On the other hand, in dedicated server hosting, the whole server is devoted to a single subscriber or single organization.

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In dedicated server hosting, the subscriber has total access and control over its server, security systems, operating system, hardware, and software. The subscriber can add preferred scripts, applications, and programs as per requirement. Further, in shared hosting, the user has to be dependent on a hosting service provider to ensure the protection of sites and resources. The hosting company is responsible for the installation of server security applications, firewalls, and programs. On the other hand, in dedicated server hosting, the security measures are taken by the users. Users can install additional firewalls or other security tools to protect servers and applications residing on it. Further, traffic jams or website downtimes are unlike scenarios on dedicated servers as the whole bandwidth is allocated to a single user.

Factors such as growth of virtualization and rise in number of security breaches are expected to drive the expansion of the dedicated server hosting market during the forecast period. Online data security is a major concern faced by enterprises around the globe. In dedicated server hosting, users can take security precautions such as software tools and firewalls necessary to protect the website and applications instead depending upon the hosting service provider. Rise in demand from organizations for the provision of on demand services, real-time user interaction, and efficient usage of storage devices is leading to the wide adoption of virtualization technologies. Significantly higher costs of dedicated server hosting compared to shared hosting and virtual private servers is expected to be one of major restraining factor for dedicated server hosting market growth.

The global dedicated server hosting market can be segmented based on operating system, enterprise size, end-user, and geography. Based on operating system, the dedicated server hosting market can be classified into Linux and Windows. The choice of operating system is dependent upon the software that the subscriber is using to support and maintain the website. The Linux-based dedicated server hosting segment is expected to account for a significant market share over the forecast period. Linux is preferred for dedicated server hosting due to its free and open source nature. On the other hand, Windows requires an operating system license.

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In terms of enterprise size, the dedicated server hosting market can be categorized into small and medium enterprises (SMEs) and large enterprises. Based on end-user, the dedicated server hosting market is divided in to IT & telecommunication, BFSI, retail, medical & health care, manufacturing, government, and others. The others sub-segment includes transportation and hospitality end-use industries. Based on geography, the global dedicated server hosting market can be divided into North America, South America, Europe, Asia Pacific, and Middle East & Africa. North America is expected to hold significant market share over the forecast period due to the presence to significant number of market players and early adoption of service in the region.

Some of the major players operating in the global dedicated server hosting market are OVH, Amazon Web Services, Inc., United Internet AG, DreamHost, LLC., Kamatera, Inc., TekTonic, Savari Technologies Pvt. Ltd (MediaStroke), Rackspace US, Inc., Spango Internet B.V., GoDaddy Operating Company, LLC, and Sasahost Limited among others.