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Platform as a Service Revenue Is Set To Reach $1.2 Billion


Written by  Sudheer Raju | 20 November 2012
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paastrendWorldwide platform as a service (PaaS) revenue is on pace to reach $1.2 billion in 2012, up from $900 million in 2011, according to Gartner, Inc. The market will experience consistent growth with worldwide PaaS revenue totaling 1.5 billion in 2013, and growing to $2.9 billion in 2016.

While these facts cannot be denied simply due to the fact that PaaS induces agility to developer community with integrations, auto scaling and ensures focus on applications than infrastructure. At the same time it also comes with challenges like governance, security, compliance and more.

This is in-line with similar projections that RedHat has released as an infographic back in May this year with a 26% annual growth rate of global PAAS market through to 2014. In-fact the projected enterprise use of PaaS is predicted to reach 43% by 2015 from 3% in 2012.

While platform as a service is the least matured industry compared to IaaS or SaaS, the outlook for PaaS is greater for years to come upto 2015/2016. This is essentially due to the strong focus by enterprises to centralize their application development, simplify and expose integrations, databases and business process as services either private or public. "The fundamental appeal of PaaS is the opportunity for ISVs (independent software vendors) and IT organizations to create new software solutions with minimal capital expense and without the hassle of provisioning and configuring the underlying infrastructure," said Yefim Natis, distinguished analyst at Gartner.

According to Gartner the largest segments within the PaaS market are cloud application platform services (aPaaS), accounting for 34.4 percent of total PaaS spending in 2012; cloud application life cycle management (ALM) services (almPaaS) at 12 percent; cloud BPM platform services (bpmPaaS) at 11.6 percent; and cloud integration services (iPaaS) at 11.4 percent. Gartner predicts that the potential spending in PaaS technologies is an average of $360 million per year from 2011 through 2016.

The vendors expect their leadership in the PaaS market to translate to large and effective ecosystems of partners, developers and solutions. PaaS technologies are embedded in many other types of cloud services, all major opportunity channels. The direct revenue in the PaaS market grossly underestimates the importance of this part of the cloud architecture. While the battle of PaaS is set to intensify between cloud vendors, the key players who have managed to build such an ecosystem includes Amazon Web Services, RedHat OpenShit, Salesforce, Windows Azure, LongJump, IBM Smartcloud, Google App Engine, Cloud Foundry and CloudBees. 

Sudheer Raju

Sudheer Raju

Founder of ToolsJournal, a technology journal on software tools and services. Sudheer has overall accountability for the webiste product development and is responsible for Sales and Marketing. With a flair to write, Sudheer himself writes for toolsjournal across all journal categories.


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