The Global Platform as a Service (PaaS) Market, By Implementation Type (Public Cloud, Private Cloud and Hybrid Cloud), By Type (Application Development, AIM, Business Intelligence Platform and Database Management Systems) and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027, is expected to be valued at US$ 48,229.4 million by 2027, exhibiting a CAGR of 28.8% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Platform as a service (PaaS) is a complete development and deployment solution in the cloud that enables users from simple cloud-based apps to sophisticated, cloud-enabled enterprise solutions. PaaS provides low initial cost, management services, automated deployment, life-cycle management, reuse, and many more applications.
The global platform as a service (PaaS) market is estimated to account for US$ 48,229.4 Mn in terms of value by the end of 2027.
Growing inclination towards OPEX from CAPEX is expected to propel the global platform as a service (PaaS) market growth over the forecast period
An on-premise data center which includes the purchase of storage hardware and server (compute), along with software licenses is considered to be capital expenditure (CAPEX). Furthermore, companies incur the direct costs associated with storage and network infrastructure, floor space, IT operations, and overhead costs of owning a server including accounting and procurement personnel. On the contrary, a data center-hosted in the cloud lacks huge initial investments since the data center is managed and owned by the cloud provider thereby removing the CAPEX related to data centers and servers. Therefore, companies are considering shifting the CAPEX to OPEX, thereby staying agile and spending money locked up in assets for more useful activities such as training, customer acquisition, etc. Hence, the market has witnessed the emergence of PaaS providers and cloud brokers, which provide solutions catering to specific industries. The companies no longer have to reinvent common platform services and can now focus on developing their own value-add, thereby leading to higher innovation. Therefore, these factors are expected to drive growth of the global platform as a service (PaaS) market during the forecast period.
Research and development can present lucrative growth opportunities in the global platform as a service (PaaS) market
Key players in the market are focused on research and development activities, in order to expand the product portfolio. For instance, in July 2014, ActiveState launched the Stackato 3.4 with an updated free Micro Cloud license. This enables Stackato clusters to use up to 20 GB of RAM. In June 2014, Amazon.com launched advanced marketing analytical tools for the AWS cloud platform. Furthermore, in November 2014, Google introduced Google Compute Engine Autoscaling with a new autoscaling feature. In October 2014, Microsoft Corporation launched its cloud platform system Azure.
Concerns regarding security are expected to restrain growth of the global platform as a service (PaaS) market during the forecast period
Despite its numerous advantages, many enterprises are hesitant towards adopting PaaS solutions, typically due to security concerns. These enterprises are cornered regarding the data breach, hacking, unauthorized access, and other cyber-attacks. Such incidences can lead to compromise confidential data of enterprises. Thus, such factors are expected to restrain growth of the global platform as a service (PaaS) market during the forecast period.
Earlier PaaS was the middle layer between SaaS and IaaS, in the cloud chain. However, with the maturity in cloud deployment platforms, there has been simultaneous maturity in PaaS. PaaS has evolved to meet the growing needs of enterprises and is now recognized as one of the strategic means of innovation. PaaS has now gained importance as a separate layer in the cloud stack, albeit SaaS and IaaS can be extended to resemble some form of PaaS. PaaS solutions are cost-effective and less complex than IaaS solutions and this helps in simplifying the efforts of IT departments as they evolve to modern ways of developing and deploying applications.
Major companies are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in July 2014, Salesforce.com acquired RelateIQ, a relationship intelligence platform provider. In May 2012, the company acquired Kiva Systems, Inc. This acquisition resulted in improved productivity of its robot manufacturing segment. Moreover, in October 2014, Google, Inc. acquired Firebase, Inc., a provider of software tools that helps developers synchronize and store data across websites and mobile applications.
Global Platform as a Service (PaaS) Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on platform as a service (PaaS) market, as most of the consumer product and retail industries are now upgrading their IT infrastructure with cloud computing in orfer to increase the overall productivity. In addition, most of the retailers are moving their business to e-commerce platform as online shopping has gained traction during pandemic as major of the population is strictly following lockdown and isolated at home , which is negatively impacted the platform as a service (PaaS) market.
Key players operating in the global platform as a service (PaaS) market are ActiveState Software Inc., AT&T Inc., Salesforce.com, Inc., VMware Inc., Amazon.com, Inc., Software AG, Google, Inc., EMC Corporation, Microsoft Corporation, SAP SE, IBM Corporation, Red Hat, Inc., and Oracle Corporation.