Worldwide PaaS revenue to reach $1.2 billion

by CXOtoday News Desk    Nov 20, 2012

paasThe global platform as a service (PaaS) revenue is expected to reach $1.2 billion in 2012-13, a steady rise from $900 million in 2011-12, according to analyst firm Gartner, Inc. The market will experience consistent growth with PaaS revenue totaling 1.5 billion through 2013, and growing to $2.9 billion in 2016.

The various categories of PaaS suites of application infrastructure services will continue to emerge in the process include application platforms as a service (aPaaS) and integration platforms as a service (iPaaS), noted Gartner. Some of the specialist application infrastructure services, such as database platform as a service, business process management platform as a service, messaging as a service and other functional types of middleware will be offered as a cloud service.

Enterprises may subscribe to a cloud provider’s PaaS or may buy a cloud-enabled application infrastructure product and build their own PaaS for private or public cloud consumption, said the analyst firm.

“Of all the cloud technological aspects, infrastructure as a service (IaaS) and software as a service (SaaS) are the most mature and established from a competitive landscape perspective, while PaaS is the least evolved. For this reason, PaaS is where the battle between vendors and products is set to intensify the most,” said Fabrizio Biscotti, research director at Gartner.

As a result of which, he mentioned PaaS’ competitive landscape is still in flux, with traditional application infrastructure vendors facing competition from new large players moving into the market, and myriad specialized PaaS pure players cutting into their slice of profits. over the next three years many of the largest enterprise software vendors would enter the PaaS market with their own offerings.

Currently, the largest segments within the PaaS market are cloud 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 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.

According to Gartner, despite ongoing economic uncertainties, mature markets, such as the US, Western Europe and Japan, are on the forefront of PaaS adoption. PaaS spending globally is relatively small, and it is almost entirely generated by the US, with 42 percent of the market, followed by Western Europe and the mature pockets of Asia Pacific. All mature economies combined, account for almost 90 percent of worldwide PaaS spending.

Gartner noted that the emerging markets are currently only marginally investing in PaaS, but the research firm believes that this trend is expected to change as PaaS matures as a technology and the vendor landscape consolidates around fewer mainstream players that have the capability to service wider geographies.