PaaS to rake in $1.2 billion in 2012

Worldwide platform as a service (PaaS) revenue is on track to reach $1.2 billion in 2012, up from $900 million in 2011, according to information technology research and advisory company, Gartner.

Gartner believes that the PaaS market will experience consistent growth with worldwide revenue totalling $1.5 billion in 2013, and growing to $2.9 billion in 2016.

PaaS includes suites of application infrastructure services, such as application platforms as a service (aPaaS) and integration platforms as a service (iPaaS).

It also includes specialist application infrastructure services, such as database platform as a service; business process management platform as a service; messaging as a service; and other functional types of middleware offered as a cloud service.

“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.

The largest segments within the PaaS market are:

  • Cloud application platform services (aPaaS), accounting for 34.4% of total PaaS spending in 2012;
  • Cloud application life cycle management (ALM) services (almPaaS) at 12%;
  • Cloud BPM platform services (bpmPaaS) at 11.6%;
  • Cloud integration services (iPaaS) at 11.4%.

Gartner predicts that the potential spending in PaaS technologies is an average of $360 million per year from 2011 through 2016.

Golden opportunity

More than 70%t of PaaS functionality today can be referenced to an application infrastructure and middleware (AIM) capability, Gartner said.

This calls for AIM vendors to consider PaaS in their offerings or to have a strategy to address the needs of those clients looking at cloud for future deployments.

Today, the largest AIM vendors have only marginal share of the PaaS market, which leaves the door open for more competitive landscape disruption over the next three years.

“The fundamental appeal of PaaS is the opportunity for ISVs (independent software vendors) and IT organizations to create new software solutions with minimal capital expense and without the hassle of provisioning and configuring the underlying infrastructure,” Gartner said.

Markets

PaaS spending, globally, is relatively small, and it is almost entirely generated by the US at 42% of the market, followed by Western Europe and Mature Asia/Pacific, Gartner said.

All mature economies combined account for almost 90% of worldwide PaaS spending.

“Emerging markets are currently only marginally investing in PaaS, but this trend is expected to change as PaaS matures as a technology and the vendor landscape consolidates around fewer mainstream players that have the capability to service wider geographies,” Gartner said.

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PaaS to rake in $1.2 billion in 2012