The global platform as a service (paas) market is expected to grow from $47.29 billion in 2020 to $54.09 billion in 2021 at a compound annual growth rate (CAGR) of 14.4%.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Major players in the Platform as a Service (PaaS) market are Amazon web service, Salesforce Platform, IBM Cloud Foundry, Microsoft Azure and Google Cloud Function.
The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.
The market is expected to reach $88.11 billion in 2025 at a CAGR of 13%.
The Platform as a Service (PaaS) market consists of sales from cloud-based platform services. PaaS is a cloud computing model that provides a platform to the customers to develop, run and manage applications over the internet. Revenue in the market is generated by the companies by way of subscriptions and licenses from web/software developers or other business households.
There are four different types of PaaS which can be classified as computing platforms, web applications, business application and social applications. The global revenue of this industry is the cumulative revenue of all the companies engaged in providing any of the above services. Some of the Paas providers are Salesforce, Heroku, Amazon Web Service (AWS), Elastic Beanstalk and Microsoft Azure etc.
Companies in the industry are increasingly preferring hybrid cloud solutions to increase efficiency, innovation, and reduce costs. Hybrid Cloud refers to a cloud infrastructure environment that is a mixture of private cloud, on-premises computing and public cloud solutions. Platform as a service providing companies in the industry are leveraging this technology to enhance their agility, capability, increase development & deployment speed, and reduce IT costs.
For instance, Amazon Web Service, a cloud computing platform, has developed a set of hybrid capabilities in the industry to capitalize on the global market. Some of the major hybrid cloud providers are Amazon, Microsoft, and VMWare, followed by other technology companies IBM, Apple, Google, Cisco, Hewlett-Packard, Dell, Oracle, and Rackspace.
PaaS being an online platform face risks and security threats that might act as a restraint to the market. Companies in the industry consider security perspectives like privacy, access control and service continuity, to protect both the service provider and the user. According to cyber security statistics by PurpleSec, ransomware attacks are estimated to cost $6 trillion annually by 2021.
PaaS services are often subject to certain vulnerabilities such as lax default application configuration and holes in secure socket layers (SSL) protocols. For instance, some of the common risk issues experienced in Microsoft Azure are misplaced or lost Linux updates, lost third party patches and unavailability of Microsoft updates.
Many companies are outsourcing application and webhosting to third party managed hosting services companies to reduce the IT infrastructure costs. Procurement of servers, storage devices and other software applications and hire professionals to develop and maintain websites and host applications are much more expensive for businesses than outsourcing these functions to third party managed services companies.