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Why “PaaS” is seen and considered as the future of cloud computing?

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Jul. 24 2014, Updated 1:00 p.m. ET

What is PaaS?

PaaS is a platform for building and delivering an application that lies on top of IaaS. It allows companies to manage their IT initiatives within the platform provider’s environment. In PaaS, clients are provided computing platforms that include the operating system, hardware, database, server, and network. The client installs or develops its own software and applications. PaaS refers to a set of services targeted at developers that helps them develop and test applications without worrying about the underlying infrastructure. PaaS simplifies the application development and deployment process as backend tasks, like setting up servers, are done in the background. The PaaS market encompasses highly strategic cloud application development, deployment, and management services. According to IDC, PaaS accounted for 14% of the total cloud services market in 2013. It’s expected to grow at a five year compound growth rate of 27% until 2018. PAAS

The previous chart shows the Salesforce (CRM) dominance in the PaaS market, followed closely by Amazon (AMZN), Microsoft (MSFT), Xerox Corp. (XRX), and Google (GOOG).

The previous chart shows the growth expected in PaaS revenues from 2012 to 2016. It’s expected that Paas revenue will touch $3.06 billion by 2016, compared to $1.6 billion in 2013.

Increased adoption

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According to Sacha Labourey, CEO of CloudBees, 80% of the workload is expected to be in public cloud by 2020. When faced with a problem, two choices seem apparent—either opt for SaaS, if an application is available to solve the problem or build a customize application with the help of PaaS. This shows the potential for growth PaaS has in the near future. Reduced costs and increased speed of development and deployment are the benefits associated with PaaS. This is prompting organizations to adopt PaaS.

Segments responsible for growth

Integration and Process Automation solutions, Structured Data Management solutions, and Application Server Middleware were the segments primarily responsible for growth in PaaS market.

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