A-P disaster recovery to be $1.3B market

Demand for disaster recovery services in the Asia-Pacific (excluding Japan) market is growing at 20 per cent per year and will be worth US$1.3 billion by 2006 compared to $551 million in 2001, according to market researcher IDC.

While the bulk of the business is currently in advanced IT markets such as Australia, Singapore and Korea, future growth is expected to be much faster in developing IT markets such as China, India and the Philippines, according to IDC figures.

In the short term, Malaysia and New Zealand are well positioned from infrastructure, technology, government policy, geography and cost perspectives and will see major activity in the disaster recovery market.

Political turbulence and the threat of terrorism has created strong interest among organizations in Asia-Pacific for disaster recovery services. But the global economic downturn has tightened IT budgets and cost remains a major inhibitor to the growth of the market for disaster recovery services, IDC said. Many companies in the region still have a false perception that they are somehow immune, and some countries lack the infrastructure required for robust disaster recovery.

At the moment, no vendor holds a dominant position in the market, and none offers the full range of disaster recovery services that end users need if they are to successfully expand their businesses. Often a consortium of vendors is needed to meet an end user’s demands, IDC said.

Over the next five years, China will be the fastest-growing market for disaster recovery services, with a CAGR (compound annual growth rate) of 46 per cent, according to IDC figures. Following China is India (36 per cent), the Philippines (34 per cent), Korea and Thailand (both 31 per cent), Malaysia (29 per cent), Indonesia (27 per cent), Singapore (26 per cent), Hong Kong and Taiwan (both 19 per cent), Australia (nine per cent) and New Zealand (seven per cent).

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Jim Love, Chief Content Officer, IT World Canada

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