Vertical: ICTBase Year: 2017
Market Size (2017)
$68.47M
Projected (2023)
$147.86M
CAGR (2014–2023)
14.9%
Key Players
10+
A private cloud is one of the cloud computing architectures that provides superior control and security to its end users along with the key benefits of cloud such as scalability, longer uptime, pay-as-you-go model, and higher efficiency. The customer entirely maintains a private cloud and bears the associated cost of acquisition, deployment, and maintenance. Private cloud is mostly adopted by businesses that have high requirement of security, business governance, and compliance with regulatory standards. The other cloud computing architectures are public cloud and hybrid cloud. In a public cloud computing architecture, all the computing resources are owned and maintained by the vendor, enabling significant reduction in IT costs for the customer without impacting the customer’s IT capabilities. A hybrid cloud is a combination of both private and public cloud architectures, which gives the advantage of cloud bursting to the customers. This model is also referred to as an expansion of private cloud where during peak demands, large volumes of insensitive data and less important applications are migrated to the public cloud while critical and sensitive data are stored and processed in the private cloud. It extensively makes use of automation and orchestration tools to enable synchronization between private and public clouds.
Among the three cloud computing models, hybrid cloud is gaining pace compared to the public or private cloud due to its flexibility associated with the management of security, cost, and customer demand. Public cloud has the largest size among the three cloud models as many organizations prefer this model due to its low cost. The market size for private cloud is almost one-third of the that of public cloud and it is growing at a slower rate than public cloud year over year. Continuous evolution of IoT and smart technologies and development of smart cities across the globe are expected to offer great opportunities of growth to the private cloud services market. However, the introduction of General Data Protection Regulation (GDPR) may hinder the growth of the private cloud services market as it has made public cloud more secure and has led to end-users to trust public cloud services. This may encourage the enterprises to transit from private cloud to public cloud environment.
In this study, the private cloud services market is segmented on the basis of service, organization size, end-user, and region. The services considered in this study are Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). Based on organization size, the market is segmented into small- and medium-sized enterprises (SMEs) and large enterprises. The major end-users of private cloud services covered in the study are banking, financial services, and insurance (BFSI), healthcare, retail, government, manufacturing, telecommunications and IT, media and entertainment, and others. Finally, the regions covered in this study are North America, Europe, Asia-Pacific, the Middle-East and Africa (MEA), and Latin America. North America is further segmented into the US and Canada; Europe into Germany, the UK, France, Spain, and the rest of Europe; and Asia-Pacific into China, Japan, India, Australia, and the rest of Asia-Pacific.
In the services segment, SaaS is the largest contributor whereas IaaS is expected to grow with the highest CAGR during the forecast period. Among the end-users, BFSI is the largest contributor whereas retail is expected to grow with the highest CAGR from 2018 to 2023. North American currently dominates the market and is expected to continue its position in terms of market share, whereas, Asia-Pacific is expected to be the fastest growing region during the forecast period.
The major vendors profiled in the study are Cisco Systems, Inc., Dell Inc., Hewlett Packard Enterprise Company, Oracle Corporation, IBM Corporation, Rackspace, US Inc., Red Hat, Inc., Salesforce.com, Inc., Amazon Web Services, Inc., and Microsoft Corporation. The strategy of partnerships, agreements, and collaboration is observed to be the most prominent strategy adopted by the major vendors from 2015 to 2018 to improve their position and excel in the private cloud services market.
The Private Cloud Services Market market is projected to grow at a CAGR of 14.9% from 2014 to 2023.
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View Subscription PlansPrivate cloud is a cloud computing model that is usually managed by internal resources which are provisioned over private IT infrastructure for devoted use of single organization. Private cloud is suitable for businesses with dynamic needs that requires direct control over environment to meet regulatory compliance requirement and security. Private cloud is mainly used for user self-service and scalability as well as ability to provision and configure virtual machines and optimize the computer resources on demand.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2017
Historical Period
2014 – 2016
Forecast Period
2018 – 2023
Primary Interviews
150+
Historical data (2014–2017) and forecast period (2017–2023)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThe cloud market is continuously emerging and getting advanced with the increasing adoption of IoT and data analytics. Most of the customers, small businesses, and industries are shifting from premise-based solutions to cloud-based solutions for better security infrastructure, pricing model, and increased efficiency. The private cloud services market comprises leading cloud industry vendors that offer their services such as infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). Most of the top service providers offer one or more services individually or as a service package. Private cloud deployment is the fastest and most secure among all the deployment models. The private cloud offers better infrastructure-as-a-service (IaaS) that enables the enterprises to make a secure, reliable, and efficient enterprise compatible cloud deployment model. Apart from the adoption of the private cloud model, buyers in this market look for factors such as virtual security, optimized virtualization, freedom to choose service providers, and widely open PaaS options before opting for any of the cloud deployment models. Some factors encourage the buyers to purchase private cloud services such as increased business agility in the maintenance of IT control and security and maintaining cloud economics in existing systems.
Vendors in the private cloud services market are focusing on improving their services and expanding their reach geographically into the under-developed and developing economies. Cisco Systems Inc., Dell Inc., Hewlett Packard Enterprise Company, Oracle Corporation, IBM Corporation, Rackspace Inc., Red Hat Inc., Salesforce.com Inc., Amazon Web Services Inc., and Microsoft Corporation are the major companies in the market, competing in terms of providing solutions, efficiency reliability, price, and compatibility with existing systems.
Amazon is been among the leading innovators, providing new features and services as a part of its portfolio. This enables Amazon to play a huge role in the private cloud services market. Among the services, IaaS has been the fastest growing service since last seven years. Moreover, Amazon has been awarded Value Award for quoting competitive pricing for a strong cloud solution. In 2006, Amazon was one of the leading vendors to bring about a change in the existing infrastructure service outsourcing. These include services such as web hosting, colocation, and complete managed services.
Various other large vendors such as Rackspace and GoGrid and competing closely to provide better IaaS services and managed cloud services for large customers base. The landscape of vendors is exponentially growing owing to increasing demand for virtualized infrastructure, consolidated technologies, and advancement in existing technology. Furthermore, many small- and mid-sized organizations are expanding their geographical presence at low cost by adopting cloud services such as colocation, hosting, and managed services. Although international players are dominating the market, other regional and foreign players with small market shares also have a prominent presence in this market. The major players may strengthen their presence worldwide through merging with and acquiring these local and regional players for expanding their solutions in those regions during the forecast period.
The private cloud services market is expected to grow as the big tech giants and new entrants in the market are continuously making investments and partnerships with leading telecommunication vendors and service providers. The increasing number of players from different sub-domains of the industry tend to make the market more dynamic and is likely to aid its evolution in the forthcoming years. The buyers in the private cloud service market focus of purchasing products or services based on certain factors including virtualization, service delivery and consumption, resource and performance management, security and compliance, hybrid cloud capabilities, and partner ecosystem. It is important for the service providers to provide cost-efficient private cloud services, to maintain their market position and gain a competitive advantage.
Michael Porter’s five forces model gives a framework that models the global private cloud services market, which is influenced by five forces. The strategic business managers, trying to create an edge over competitive firms in the global private cloud services market can utilize this model to better comprehend the industry connection in which the firm operates. The components of each of the forces and the degree or impact of each component in the context of the global private cloud services market have been broken down and analyzed. Threat of New Entrants
Data security over cloud is one of major concerns in front of enterprises and thus, they seek for solutions that can provide them with reliable cloud service. Although, the new entrants focus on developing innovative cloud solutions, the existing enterprises have a competitive edge by offering advanced and efficient cloud solutions. Moreover, the customers of private cloud services rely on already establishes firms owing to reliability and security of data. Hence, the new entrants possess a moderate degree of threat in the private cloud services market. Bargaining Power of Suppliers
There is a huge competition among the major developers, as the companies are moving towards adopting employees on hire basis. Various physical components such as servers, storage units, and network equipment are purchased by suppliers, however automation of business processes reduces the need for providing technological infrastructure. There is an availability of alternate solutions for network and software in terms of integration. However, the complexity, and benefits of cloud computing technologies increases the power of suppliers. Bargaining Power of Buyers
The buyers of private cloud services often range from individual customers, start-ups, small businesses, and even large organizations that seek more efficient and advanced services compared to legacy systems. These buyers generally enter a service agreement, or a contract to get services from the vendors. The vendors offer flexible pricing models and cloud services that reduces the chances of switching to other vendors for getting services. The buyers get a moderate power of bargaining as new entrants in the market are likely to offer better services at low costs. Moreover, buyers look out for more reputable companies to get services due to better aftersale services. Threat of Substitute
There are various small and medium enterprises that still rely on premise-based IT systems to carry out work process. Cloud computing, however has encouraged many enterprises to shift from premise-based services to cloud computing. Although there is reduced cost in cloud services and cloud deployment, there is also a risk of security breach and loss of data on cloud servers. These factors create a moderate threat of substitute. Rivalry
Globalization of industries is one of the major factors increasing the competition in the private cloud services market. The market for private cloud services market comprise many small players as well as large players. The large players in the market compete based on technically advanced solutions and strive to accumulate a major share of the market. On the contrary, the small players in the private cloud services market focus on delivering innovative and niche solutions to enterprises hence, creating a competitive environment in the market. However, the solutions provided by these players are relatively similar thereby, creating a moderate degree of rivalry in the market.
Market estimates by geography (2023)
InsightNorth America leads with $82.11M by 2023, while Asia Pacific is projected to grow fastest at a 18.0% CAGR.
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View Subscription Plans| REGION | 2014 | 2017 | 2023 | CAGR | SHARE |
|---|---|---|---|---|---|
| South America | $2.01M | $4.57M | $7.59M | 15.9% | 5% |
| North America | $24.69M | $52.51M | $82.11M | 14.3% | 56% |
| Europe | $7.38M | $15.29M | $23.53M | 13.8% | 16% |
| Asia Pacific | $5.53M | $13.76M | $24.50M | 18.0% | 17% |
| Middle East and Africa | $2.59M | $6.01M | $10.14M | 16.4% | 7% |
| Total | $42.20M | $92.14M | $147.87M | 14.9% | 100% |
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View Subscription PlansTotal Market Size
$147.86M
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| SaaS | $80.84M | 14.0% | 55% |
| IaaS | $47.10M | 16.4% | 32% |
| PaaS | $19.92M | 15.6% | 13% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Private Cloud Services Market covering market dynamics, competitive landscape, and strategic outlook.
The Private Cloud Services Market market is projected to reach $147.86M by 2023, growing at 14.9% CAGR. The SaaS segment holds the largest share.
The private cloud service market is driven by various factors such as increasing demand for low cost IT infrastructure, increasing demand for AI, machine learning, and IoT. The market is refrained by high price of private cloud deployment. However, increasing concerns related to data security holds opportunity for the market.
The IT infrastructure comprise both hardware and software components. Hardware component includes servers, gateways, routers and software comprises network function virtualization (NFV) and others. NFV is used to virtualize network services to run on different hardware. NFV comprises routers and firewalls as virtual machines on product hardware. To operate with high efficiency, enterprises must maintain the working of hardware components. However, due to the high cost of maintenance, the overall cost of the company increases, which creates a demand to utilize optimal solutions for hardware asset maintenance. With the use of private cloud services, companies can store data on cloud without requiring any additional hardware storage units such as gateways, routers, and servers on-premise. The major benefit provided by using private cloud services is that the information can be accessed from any location remotely. This reduces the need to deploy hardware on-premise and subsequently the cost incurred in maintaining the assets. Moreover, private cloud services are easily accessible and upgradable.
Private cloud improves the level of security as compared to the public cloud. Private cloud offers most control over security owing to all the security that is applied in-house or outsourced to be managed by security provider. Private data of company is saved and managed on the server where no other company can access the data. This is expected to increase data privacy of the organization. With the increase in data privacy, the cost of physical security is reduced.
Building a private cloud involves a huge fixed and recurring cost over a year. Private cloud deployment includes forecasted usage, compute capacities, redundancy strategy, and types of virtual machines organized over different memory storage. Public cloud offers reduced storage and are managed by third-parties for keeping the price low. Whereas private cloud contains its own IT infrastructure which includes servers, routers, and gateways. Private cloud operating companies invest more capital on IT infrastructure in maintaining and repairing the hardware components such as servers, routers, and gateways for security, upgrades, and enhanced control.
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Profiles of 105 companies operating in the Private Cloud Services Market market, including revenue, employee count, and market positioning where available.
Showing 105 of 105 companies
Company Headquarters: US Founded: 1939 Workforce: 60,000 Company Working: Hewlett Packard Enterprise Development LP (HPE) is engaged in the provision of information technology (IT) solutions. The company offers a broad product portfolio that includes enterprise IT solutions, including servers, storage, networking, converged systems, software and services, and financial solutions. It operates through three reportable business segments, namely hybrid IT, intelligent edge and financial services, and corporate investments. The hybrid IT segment offers software-enabled and services-led infrastructure solutions under four categories, including compute, storage, and data center networking (DC Networking) services. The intelligent edge segment includes enterprise networking and security solutions under Aruba brand. Its major products include wired and wireless local area network hardware products such as switches, routers, sensors, Wi-Fi access points, and software products, and location services software. The segment also provides professional and support services for the intelligent edge portfolio of products. The financial services segment offers flexible investment solutions, utility programs, asset management services, and others. that facilitate unique technology deployment models, and the acquisition of complete IT solutions, including hardware, software, and services HPE operates globally, with primary operations in the US.
Company Headquarters: US Founded: 1984 Workforce: ~145,000 Company Working: Dell Inc. (Dell) is one of the leading providers of IT products and services. It offers a comprehensive range of IT products, solutions, and services to consumers and enterprises. The company operates through three reportable segments, which are client solutions group (CSG), infrastructure solutions group (ISG), and VMware. The company offers PC as a Service products and services through its CSG segment. The CSG segment comprises hardware peripherals such as personal computers (PCs), notebooks, and branded peripherals, such as monitors and projectors, as well as third-party software and peripherals. It also offers thin client products along with their attached software, peripherals, and services, including support and deployment, configuration, and extended warranty services. The VMware segment comprises computing, cloud, mobility, networking, and security infrastructure software. This segment is further divided into three groups, which are software-defined data center (SDDC), hybrid cloud computing, and end user computing (EUC). The PC as a Service segment falls under EUC, whose product portfolio comprises AirWatch mobile solutions, horizon application, and desktop virtualization solutions and other common services. Additionally, its horizon applications comprise horizon desktop and application virtualization solutions that help organizations manage desktops and applications more effectively. Moreover, Dell’s cloud-based and local virtual desktop solutions include VMware Horizon Air, VMware Horizon FLEX, and App Volumes, which are application delivery and lifecycle management solutions. It has its operations in the Americas, Europe, the Middle East, and Asia-Pacific.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} Company Headquarters: New York, US Founded: 1975 Workforce: ~140,000 Company Working: Microsoft Corporation (Microsoft) is one of the leading providers of software, services, devices, and solutions. Its products include operating systems, cross-device productivity applications, server applications, business solution applications, and desktop and server management tools. The company operates through three business segments: productivity and business processes, intelligent cloud, and more personal computing. The productivity and business processes segment includes products and services for communication and information technology. The company's productivity and business processes segment offer products and services related to communication and information technologies. Office 365 is its cloud-based service that provides access to Office and other productivity services. The intelligent cloud segment offers public, private, and hybrid server products and cloud services. The more personal computing segment offers the Windows operating system, devices, gaming platforms, and search engines. The company has a presence in more than 190 countries.
Company Headquarters: US Founded: 1911 Workforce: ~2,82,100 Company Working: IBM Corporation is a global provider of integrated business solutions and services. Its Cloud & Cognitive Software division provides software for vertical and domain-specific solutions in a variety of application areas, as well as customer information control system and storage, analytics, and integration software solutions to support client mission on-premises workloads in the banking, airline, and retail industries. It also provides middleware and data platform software, such as Red Hat, which allows clients to run hybrid multi-cloud environments; cloud paks, WebSphere distributed, and analytics platform software, such as DB2 distributed, information integration, and enterprise content management; and IoT, blockchain, and AI/Watson platforms. Business consulting services, packaged software system integration, application management, maintenance, and support services, and finance, procurement, talent and engagement, and industry-specific business process outsourcing services are all available through the company's global business services segment. IT infrastructure and platform services are provided by the company's global technology services business, as well as project, managed, outsourcing, and cloud-delivered services for enterprise IT infrastructure environments and IT infrastructure support services. The cognitive solutions segment offers a cognitive computing platform called Watson, which interacts in natural language, processes big data, and learns from interactions with people and computers. This segment also provides data and analytics solutions, data management platforms, cloud data services, enterprise social software, and transaction processing software that run mission-critical systems in the banking, airline, and retail industries. IBM provides speech recognition products using computer hardware and software-based techniques to identify and process the human voice and convert the spoken words into computer text. Furthermore, the company is also investing heavily in designing and developing automatic speech recognition technology-based products, which are capable of authenticating users via their voice and performing an action based on the instructions defined by the human.
Company Headquarters: California, US Founded: 1984 Workforce: ~74,200 Company Working: Cisco Systems, Inc. (Cisco) designs, manufactures, and markets IP-based networking products and services for information and communication technology (ICT) industry. The company offers various products in the following categories: networking, mobility & wireless, security, data center, and cloud. Cisco’s product portfolio includes switches, routers, wireless, network management interfaces & modules, optical networking, access points, outdoor & industrial access points, next-generation firewalls, advanced malware protection, VPN security clients, email, and web security. The company serves various industry verticals such as education, energy, financial services, healthcare, manufacturing, retail, and hospitality, as well as the government sector. The company’s technology offerings comprise analytics and automation, cloud, collaboration, data center, digital transformation, enterprise networks, innovation, mobility, security, services, and service providers. The company has more than 400 offices worldwide.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Franklin Gothic Medium",sans-serif;} Oracle Corporation was established in 1977, with its headquarters in California, U.S. The company manufactures application software, hardware systems and provides solutions for other services. The company offers services in three major areas such as software as a service, platform as a service and infrastructure as a service. Under homomorphic encryption, the company provides IT infrastructure solutions such as data encryption. Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Franklin Gothic Medium",sans-serif;} The company has production centres, research and development engineers, personalization & data centres across the globe in regions such as U.S., India, Japan, U.K., Germany, New Zealand, Canada and Russia. The main strategy of the company is to invest more in research & development to innovate new products which can be offered through cloud and on premise software. It reported revenue of USD 37,047 million in FY2016.
6 interactive charts drawn from the Private Cloud Services Market dataset — market size, regional splits and each segment breakdown. Open one to read its full data table and download it.
Global Private Cloud Services Market Middle East And Africa
Global Private Cloud Services Market Australia, China, India, Japan and Rest Of Asia Pacific By Country
Global Private Cloud Services Market Germany, Spain, France, United Kingdom and Rest Of Europe By Country
Global Private Cloud Services Market United States and Canada Of North America By Country
Global Private Cloud Services Market South America
Global Private Cloud Services Market By Region
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Historical performance and future projections (2020–2030, USD Billion)
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