The growth of DRaaS adoption in modern enterprises

Disaster Recovery as a Service (DRaaS) is a managed service offering that aims to provide online backup and disaster recovery services. In an increasingly virtualized, distributed, and mobile environment, it has become imperative for businesses of all kinds to safeguard their critical applications, data, and network infrastructure. Afterall, enterprise IT investments in cloud computing are expected to account for more than one-fourth of all IT spending, a significant increase over prior years, according to Gartner.

Because of the digital transformation initiatives undertaken by a growing number of small and medium businesses, the DRaaS market has been gaining traction. It provides huge flexibility and agility to companies that rely on service for a large amount of their revenue. The advent of 24×7 service providers, particularly in small and medium-sized businesses has increased market demand for DRaaS. During an outage or downtime (or in instances like a forced suspension due to the pandemic), companies that are not resilient miss out on important sales, are unable to engage with their customers, and in fact, lose their customers’ trust. DRaaS can help prevent such downtime and enable business continuity.

In the age of cloud, Disaster Recovery as a Service offers a more flexible alternative to standard disaster recovery approaches while being more efficient, increasing reliability, and also saving costs. A growing number of enterprises are implementing backup and recovery solutions to improve business continuity and resiliency, and these managed services are likely to see the most adoption in the next five years. According to an industry report, the global DRaaS market is expected to rise at a compound annual growth rate (CAGR) of 23.3 percent, from USD 5.1 billion in 2020 to USD 14.6 billion in 2025.

Though the COVID-19 outbreak manifested diverse problems in businesses across industry sectors, it has also created opportunities for DRaaS firms to grow their businesses across businesses of all sizes since the pandemic has also accelerated digital transformation of organisations and catapulted the cloud adoption all over.


Swarochish Goswami is an associate with Simplex Services.

Photo by Kelly Sikkema