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Cloud Computing: Vendors Battle for Claim to the Strategic 1 percent — PaaS
Cloud computing is rapidly being adopted by companies of all sizes. Gartner estimates that the overall global cloud services market in 2012 to be $109 billion. A very small piece, but rapidly growing, part of this market is Platform as a Service (PaaS). At just $1.2 billion in 2012, the PaaS market is only about 1 percent of the total cloud services market, but it is considered to be strategic and ultimately a growth driver for other segments like Business Process as a Service (BPaaS) and Software as a Service (SaaS).
While 79 percent of companies now use Software as a Service (SaaS), only about half of companies use Platform as a Service (PaaS) technology. Gartner expects PaaS to reach $1.5 billion in 2013 and grow to $2.9 billion by 2016.
Yefim Natis, distinguished analyst at Gartner, said that “All software mega-vendors are strategically investing in the PaaS market despite the relatively modest projected market revenue. They expect their leadership to translate to large and effective ecosystems of partners, developers and solutions. PaaS technologies are embedded in many other types of cloud services…the direct revenue in the PaaS market grossly underestimates the importance of this part of the cloud architecture.”
Fabrizio Biscotti, research director at Gartner, said that “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. 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.”
Gartner says to expect “more competitive landscape disruption over the next three years.”













