Harbor law in the region have added to customer angst over data locality, so this is timely for NTT.
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- Arabella Dorsey
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1 NTT is taking part in the fast-rising trend in using cloud-computing techniques for advanced infrastructure services (more complex than IaaS or PaaS, less defined than SaaS). The global telecom and IT services provider has expanded its disaster recovery-as-a-service (DRaaS) operations to Europe. NTT operates DRaaS and cloud services in 16 datacenters worldwide, and now operates a DRaaS service in the UK, Germany, France and Spain. This follows on the heels of NTT's expansion of its Enterprise Cloud platform to Paris and Madrid locations. The news highlights the rising demand for cloud-enabling technologies, and in particular the appetite for data- and application-protection services. Our market-sizing data indicates that these services will outstrip spending on virtualization technology by 2019 and DRaaS in particular has seen very fast proliferation. The overall market for cloud-enabling technologies is estimated by 451 Research Market Monitor to be more than $5bn for 2015, and is projected to rise to $8bn by NTT is a global datacenter, IT infrastructure and network-services provider of the first rank, and its expansive footprint and initiatives to unify its cloud and datacenter products into a somewhat cohesive whole following the design goals of cloud computing generally are what make it able to expand its DRaaS offering as rapidly as it has. The cloud is supposed to make everything faster and more automated for the provider as much as for the end consumer. The demand is
2 there because NTT is hearing the same thing that other infrastructure-services providers are hearing from customers: give us the DR we always wanted but couldn't have, until cloud computing came along. We predict that NTT will continue to see growth in its DRaaS services for the foreseeable future educating customers about the options that are available will be key to more uptake. NTT's main business is network connectivity. It is one of the largest IP-backbone providers in the world, but also has a considerable number of multi-tenant datacenter (MTDC) facilities and a sizeable hosting business. In recent years, it has invested heavily in becoming a cloud-computing provider, now counting 15 datacenters globally that it operates IT infrastructure services from. These include Japan, China, Hong Kong, Singapore, the US, the UK, Germany, and recently, Paris and Madrid (opened summer 2015). DRaaS is one of the leading services for NTT's cloud operations, consisting of virtualized replications of customer IT environments that are switched on when failure at a main site occurs. 451 Research has covered the rapid rise of DRaaS for some time. Its major appeal is that it fills a gap in many IT operations, one that is avoided, inadequately filled or otherwise grudgingly funded because DR is typically assumed to be a very large capital investment that is only done for missioncritical or mandatory reasons. DRaaS drastically lowers the cost and implementation time for DR; the demand for NTT stems from this fact. NTT's DRaaS services are based on Geminaire, a software firm that specializes in virtualized, and now cloud-based, DR software and partners with many large providers. It is a mature and functional product. NTT says it has hundreds of DRaaS customers worldwide at this point, citing organizations that range from single datacenters to a very large IT services firm with a globally distributed workforce numbering 275,000, for which NTT provides multiple site and application DR services that customers can manage themselves. Most of NTT's DRaaS customers are in Japan, Asia/Oceania and EMEA, and it is now making a new push to further extend the business in North America, as well as the new regions in Europe. Thanks to a smattering of jurisdictions and laws around data residency in the EU, regionality is key to landing new business NTT (or any cloud provider) must be able to tell customers their data will stay within, or without, the boundaries of sovereign states as needed. Recent upheavals to Safe
3 Harbor law in the region have added to customer angst over data locality, so this is timely for NTT. DRaaS is a booming market space at the moment, with many players large and small looking to appease the pent-up demand. VMware's vcloud Air has put DRaaS front and center, and Microsoft has Azure Site Recovery. Traditional DR vendor SunGard has a number of modernized services that compete, while IBM has DRaaS. Other major providers include Zayo Group, iland, Axcient, Symantec (partnered with Microsoft), Bluelock, Appica, ViaWest, Windstream Hosted Solutions (sold to TierPoint), Peak 10, PEER 1, Ajubeo, Cirrity, Databarracks, Logicalis, CenturyLink, QTS and many others. In Europe, some examples are Calligo, SaveNet, BT, Telefonica and Orange Business. NTT's global footprint and status as a backbone provider mean it can serve the largest customers. NTT itself is a very large organization, and most of its traditional business lies in Japan, but the global opportunity is far more competitive. The opportunity for DRaaS is a major part of the overall cloud-enabling technologies segment, which 451 Research estimates to be an $8bn opportunity. Threats include rampant competition and the rise of other major enterprise vendors as cloud-services providers. Analyst, Service Providers
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