“Hosting is set for a transformative year in 2025”, says Steve Porter, Managing Director at Metrofile Cloud. The virtual private server (VPS) market is forecasted to achieve a compound annual growth rate (CAGR) of 14,53% from 2023 to 2030, according to a study by Market Research Future.
Porter notes that the shift towards cloud-hosted VPS is accelerating because it is now perceived as a viable business tool, scalable by nature, with improved performance compared to traditional hosting solutions.
“No longer just a solution, this business tool embodies an ecosystem that offers key features driving this shift. These include scalability, flexibility, performance, cost-effectiveness, and customisation. Cloud VPS hosting merges the control and resources typically associated with dedicated servers with the affordability and ease of shared hosting," Porter explains. He says that the increasing adoption of cloud-based VPS solutions for enhanced flexibility and adaptability is further amplifying this trend, making it suitable for businesses experiencing variable traffic or specific resource demands.
According to Porter, another key factor is pricing. Metrofile Cloud’s private cloud infrastructure is dedicated to local markets. By pricing services in a local currency and using locally located data centres, fast and flexible service is guaranteed. The specific country's data laws are adhered to, and economic benefits tailored to a specific region prove advantageous.
However, Porter highlights that there is growing market confusion regarding hosting requirements and the necessity for disaster recovery as a service (DRaaS). “As many businesses head towards the end of their financial year, we have noted a sizeable and persistent knowledge gap. It has become clear that there is an additional need to help clients understand their requirements at each stage, to select the most appropriate technology solution."
While shared hosting has historically dominated the market, Porter predicts that VPS hosting will continue to grow at an accelerated rate and may soon become the primary hosting solution once the market fully understands its value. Cloud VPS adapts easily to changing needs without requiring physical hardware adjustments. Resources distributed across multiple servers enhance performance and resource allocation, while the pay-as-you-go model aids in budget management, preventing overspending on unused resources.
Providers now offer tailored hosting plans that align closely with specific business requirements. DRaaS, which does not entail hefty hardware investments, enables quicker and more efficient recovery processes, minimising downtime and potential financial repercussions. It ensures enhanced business continuity by maintaining access to critical data and systems, even during disruptions.
"The significant growth drivers for VPS include the demand for cost-effective and flexible server solutions," Porter remarks. "However, increased demand within the SME sector and the push for a more robust digital presence are also major contributors. Businesses are increasingly attracted to the enhanced security features offered by VPS hosting, with many finding the isolated environment particularly appealing.”
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