Platform As A Service (PaaS) Market is set to gain significant traction over 2021-2027. This is driven by the capability of PaaS systems to ensure faster time to market for emerging applications, reduce complexity with the development process, and streamline application management. Likewise, the rising need for collaboration, particularly among geographically distributed teams, will further escalate the shift of software development activities towards the PaaS environment.
Platform as a service refers to a complete, cost-effective, and flexible cloud platform for running, developing, and managing applications. It is a cloud computing model that offers a complete cloud platform including hardware, and infrastructure, eliminating the inflexibility and complexity that comes with maintaining and building the platform on-premises.
Significant growth of cloud infrastructure and the rising prominence of cloud migration are among the key trends characterizing Platform as a Service (PaaS) market expansion. According to a 2020 LogicMonitor report, nearly 74% of decision markers in global IT estimated that 95% of all workloads will have migrated to the cloud within the next five years. Moreover, the rapid deployment of IoT and other innovative technologies by SMEs will contribute to the popularity of the Platform as a Service framework over the foreseeable future.
With regards to the application spectrum, the global Platform as a Service market from the integration PaaS (iPaaS) segment will amass considerable gains by 2027. This is due to the mounting focus of big- and small-sized businesses on connecting disjointed software and offering a unified solution to customers. iPaaS can boost communication between systems and promote integration and data sharing, thus enabling companies to expand their service offerings without the need to build out extra services.
From a regional perspective, North America is poised to emerge as a lucrative revenue pocket for the Platform as a Service (PaaS) industry by 2027. This is credited mainly to the robust cloud technology landscape, as well as targeted government efforts to boost cloud migration in the region. For instance, the U.S. government issued the CloudFirst policy, as part of the U.S. Federal Cloud Computing Strategy, to expedite the rate of cloud adoption in the nation.
The competitive landscape of the Platform as a Service (PaaS) market consists of companies such as TIBCO Software Inc. (Vista Equity Partners), SAP SE, Oracle Corporation, Microsoft Corporation, IBM Corporation, Heroku (Salesforce), Google LLC (Alphabet Inc.), CloudBees, Cloud Foundry, Apprenda, and Amazon Web Services, among others. Strategic product launches and mergers and acquisitions are the key initiatives being undertaken by these firms to reinforce their presence across the global market.
For instance, in April 2021, IBM announced the general availability of IBM Cloud for Financial Services, featuring support for cloud-native services like Red Hat OpenShift. This financial services-ready cloud platform was built on IBM cloud, which includes above 200 API-driven, cloud-native PaaS. In February 2021, Microsoft launched a new hybrid cloud solution, Azure Stack HCI (hyperconverged infrastructure). This solution combines PaaS and IaaS in a software stack, to deliver up-to-date security, feature, and performance updates.
The implementation of lockdown and other strict measures during the coronavirus pandemic has created a huge impact on startups and micro, small and medium enterprises across emerging economies. According to LocalCircles’s survey, nearly 59% of these enterprises in India were likely to scale down, sell, or shut down their operations due to the second wave of the COVID-19 pandemic. Economic downturn and the temporary closure of businesses amid the crisis may thus pose negative impacts on the Platform as a Service industry outlook.
On the other hand, a significant increase in cloud spending and the robust demand for cloud-based offerings during the pandemic may help the market gradually regain traction in the years ahead. During the lockdown period, cloud computing technology has proved beneficial in providing commendable healthcare services. It also offers an advanced infrastructure to boost digital transformation, which in turn, will augment the demand for PaaS architecture.