Derak-cloud claims that the cloud market in Iran has a capacity of 83 exabytes. On the other hand, Asiatech cloud states that the current market volume is 500 billion Tomans, and the minimum estimate by Arvan-cloud is 700 billion Tomans. What is common among the statements of these market players, however, is the belief in the market’s small size and hope for its growth.
According to IDEA, the cloud service market worldwide is growing at high rates. In 2022, this market reached a volume of $569 billion, and Fortune Business Insight predicts that by the end of this year, the market volume will reach $677 billion. This research institution states that with an annual compound growth rate of 20%, the global cloud market will have a volume of $2.432 trillion by 2030. It’s noteworthy that currently, approximately $400 billion of this $569 billion market is concentrated in North America.
Market players in Iran provide various estimates of the market size, some of which have significant differences, but all of them agree that there is growth potential in this market in Iran. What do Derak-cloud, Arvan-cloud, and Asiatech say about this? Derak-cloud Satisfied with One Percent
Derak-cloud, one of the major players in the field
Primarily offers CDN services and has 42 PoPsite worldwide. Cloud servers and live streaming services are among the other products of the company based in Shiraz.
Regarding the volume of the cloud computing market, Sara Rad, co-founder of Derak-cloud, states: “There are conflicting data about the size of this market in Iran. The information I provide is related to the IaaS market. According to our estimates, in 2022, this market in Iran had a volume of $1.2 billion, and with a compounded growth rate of 23% in 2023, it will reach a volume of around $83 billion in Iran.”
Farshad Khonjush, the chairman of Derak-cloud’s board of directors, had previously stated at the company’s rebranding event that they aim to capture a share ranging from half to one percent of this market.
Asiatech-cloud : Half of the Market Belongs to Us
Asiatech-cloud is another prominent player in the country’s cloud computing market. This company operates in the IaaS sector and also provides CDN services. Reza Rejalzadeh, CEO of Asre Dadehay-e Asiatech, says they plan to capture between 30% to 50% of this market. He mentions that they currently hold 80% of the data center market. He explains the volume of the market they have: “If we don’t exaggerate, my interpretation is that in the current situation, we have at least 50% of the market, and with the existing growth rate, we will maintain this position because other product sets will also be added to our portfolio.”
Regarding the overall size of this market in the country, he explains: “Four years ago, research was conducted in the field of cloud computing in the Middle East. In that research, it was estimated that by 2025, the size of this market in Iran alone would exceed $300 to $350 million per year. In the current exchange rate of 50,000 Tomans per dollar, it amounts to over 1,500 billion Tomans. Currently, there are around 500 billion Tomans in total service providers. So, this market can have a threefold growth by 2025, which is entirely natural.”
Arvan-cloud: Big Player in a Small Market
Pouya Pirhosseinloo, CEO of Arvan-cloud, believes they have a large share of this market but also acknowledges that the overall market in Iran is not that large. He says: “Arvan is a pioneer in the cloud market. It was the first company to enter this field seriously and the first CDN to provide services publicly in Iran, having the largest share of the cloud services market in Iran. So, we’re talking about a company that has a significant share in cloud services, and it’s probably an important company. In the world, we’ve had market share, and we still do, and we’ve managed to attract good customers from developing countries. This statement is accurate and precise.”
He continues: “However, there’s another precise statement that Arvan is a very, very small company; both in Iran and globally. Even if we put traditional hosting services together with private hosting and cloud hosting services, Arvan doesn’t have much market share. In fact, when I want to tell you the numbers, 4% of IaaS hosting for the top 200,000 websites in Iran is done by Arvan, and about 8% of it is done using Arvan’s CDN. So, this number is very insignificant, even in terms of revenue.”
He tries to provide a relatively more accurate estimate of the market size in the country. Pirhosseinloo explains: “We can calculate the market volume in two ways. One way is to use global information and say, for example, that the global cloud market is $100 billion. I mean the IaaS market and not SaaS; I’m talking about cloud infrastructure. Let’s adjust this number, considering that Iran’s GDP is one-tenth of the global GDP, or Iran’s population is one-tenth of the world’s population, and the ratio of .IR domains to other TLDs. With these methods, we come up with a significant number.”
Pirhosseinloo adds: “Another method is to count from the bottom up; that is, we see how much these players in Iran are selling and add up their sales, considering some unknown part of it as well. The market is currently approximately 700 billion Tomans. So, we have at least a 10-fold difference here.”
CEO of Arvan-cloud provides a lower estimate and says: “Another method is to calculate it from the bottom up; that is, we see how much these players in Iran are selling and add up their sales, considering some unknown part of it as well. The market is currently approximately 700 billion Tomans. So, we have at least a 10-fold difference here.”
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