Report: PaaS to generate $2.9 billion in 2016
Although the overall cloud services market is forecast to continue expanding in the coming years, each cloud model will experience different paces of growth. Cloud infrastructure and software offerings are likely to develop the fastest, but will not be the only ones poised for expansion.
A new report by Gartner noted that Platform as a Service, commonly called PaaS, is estimated to generate $1.2 billion in revenue in 2012, up from $900 million in 2011. This increase will not be a one-time occasion, as analysts predict the market will continue growing in the coming years to reach $1.5 billion in revenue in 2013 and $2.9 billion in 2016.
"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," said Fabrizio Biscotti, research director at Gartner. "For this reason, PaaS is where the battle between vendors and products is set to intensify the most."
What's happening in the PaaS market?
There are several large segments of PaaS that are garnering significant attention, including cloud application platform services and application lifecycle management solutions. Gartner noted that these and other PaaS offerings will encourage spending on the technology to reach roughly $360 million per year from 2011 through 2016.
Mature markets, such as the United States and Western Europe, also have the most evolved IT landscape. For this reason, businesses in these regions are forecast to adopt PaaS relatively soon, with America leading the pack, as it already makes up 42 percent of all PaaS spending, the report said.
This was echoed in another report by TechTarget, which forecast the PaaS market to increase in competitiveness in the coming years as the market moves forward. While there are risks associated with the technology, the benefits will likely outweigh the potential setbacks, driving adoption rates.
"It comes as no surprise that the 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," Biscotti said.
Cloud services are becoming increasingly important for companies that wish to stay competitive in today's highly cutthroat business world. If executives stall in their adoption of the technology, their organization will likely have trouble maintaining pace in the coming years.
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