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Platform as a Service (PaaS) Market

Platform as a Service (PaaS) Market Research Report – Segmented By Type (Type: Platform as a Service Market Drivers, Type: COVID-19 Impact, Application Platform as a Service, Infrastructure Platform as a Service, Database Platform as a Service, Others), By Deployment (Deployment: Paas Market Drivers, Deployment: COVID-19 Impact, Public, Private), By Organization Size (Organization Size: Paas Market Drivers, Organization Size: COVID-19 Impact, Large Enterprises, Small and Medium-Sized Enterprises), By Vertical (Vertical: Paas Market Drivers, Vertical: COVID-19 Impact, Banking, Financial Services, and Insurance, Consumer Goods and Retail, Information Technology and Information Technology-Enabled Services, Telecommunications, Manufacturing, Healthcare and Life Sciences, Energy and Utility, Other Verticals), By Region (North America, Europe, Asia-Pacific, Middle East and Africa, Latin America) & Region (North America, Europe, APAC, Latin America, Middle East and Africa) – Analysis on Size, Share, Trends, COVID-19 Impact, Competitive Analysis, Growth Opportunities and Key Insights from 2019 to 2027.

1 Executive Summary

The global Platform as a Service (PaaS) market size is expected to grow from USD 53.63 billion in 2020 to USD 144.70 billion by 2026 at a CAGR of 18.0%.

Key factors that are expected to stimulate market growth are the growing need to reduce marketing time and application development costs and focus on simplifying application management. However, cloud-based PaaS growth and security concerns related to public cloud adoption are expected to slow market growth.

The impact of the COVID-19 epidemic on the market has been seen throughout the report. The epidemic has had a positive impact on the growth of the PaaS market. The main reason for the positive impact on the market is the increasing demand for continuous business tools and services, high reliance on public cloud services to meet close business objectives, and increased spending on cloud services by large industries due to COVID-19. However, the reduction in industry spending due to COVID-19 is expected to affect the adoption of PaaS solutions and services.

The state of technology in companies is changing dramatically, including the way it is built and infrastructure and its construction and installation of software programs. Market Time (TTM) is the time taken by an organization to introduce a product or feature; it is very important to determine the success of the organization and the development costs of its products. Better control of the development process makes it easier to deliver the product. Almost all companies offer the value of TTM and aim to develop the same, but most companies fail to get the TTM they want due to the inefficiency of the digital landscape.

Digital transformation is key to empowering developers and improving customer engagement and experience. The companies aim to launch the product as soon as possible because it is estimated that the first software product to enter the market could reach 70% of the market share. Companies face financial losses if they fail to meet TTM objectives. It is proven that there will be a 33% lower profit in five years if the product is introduced six months later in the market. On the other hand, if the product is delivered on time, but it is 50% above the budget, then the profit will be reduced by about 4%.

Reducing TTM and lower operating system development costs will polish internal processes, streamline software product development, avoid waste spills, and ensure better integration. Therefore, companies are focused on reducing TTM and application development costs as it is important for them to introduce the release of large versions or smaller updates over time in order to compete in the market.

The term cloud washing is used when marketing teams label their software to make their software more attractive. Cloud-based PaaS solutions are different from cloud-based offerings. Cloud-based PaaS solutions bring similar building models and systems. These solutions offer limited features of the cloud and bring only further improvements. However, traditional solutions that incorporate character code in decouple application code from working-time infrastructure data, increase application density, and facilitate distributed collaboration. There are many situations where end users cannot decide whether PaaS is cloud-based or cloud-based. Cloud-washed solutions utilize a large number of machine resources (e.g. CPU, memory) and increased administrative effort. Therefore, the use of cloud-based solutions is expected to hamper the market growth.

The mobile ecosystem is growing at a tremendous rate, and app development is emerging as an important component that enhances its growth. Due to the growth of digital businesses, the development of mobile business applications is also a priority for organizations. According to a 451 Research report, 50% of IT organizations plan to use at least ten mobile applications over the next two years. Due to the COVID-19 epidemic, there has been a sudden rise in demand for other mobile applications. Technologies such as 5G and cloud computing have boosted the growth of these mobile applications. PaaS providers offer specific tools for tablets, mobile phones, and web platforms, including a variety of functions ranging from data acquisition, data backups, data security to licensing systems, support, and storage, and server-based robustness. Developers can maximize app development, while PaaS providers take care of everything else.

In the case of entry into the seller, the exchange costs are high, so that the customer is attached to the seller first. Due to financial pressures and limited performance, customers are unable to switch to other vendors. Lack of suspension is sometimes another important aspect of the process of entry into the vendor in the PaaS market. In addition, many customers are unaware of the standards that contribute to the interaction and portability of applications when taking services from vendors. To overcome this challenge, PaaS vendors maintain good business relationships with customers to ensure they continue to use their services.

Various government agencies use aPaaS as it provides modern efforts while meeting all security requirements. For example, in May 2019, Appian established a partnership with Smartronix Inc., a premier of AWS, to bring the speed and impact of low-code platforms to the Federal Government and the Department of Defense (DoD) through AWS or Microsoft's Azure Cloud Platform. The PaaS component is gaining traction among businesses, due to a variety of benefits it offers, such as reduced coding time, additional development skills without the involvement of more staff, application for multiple platforms, access to support tools, support for distributed distribution teams, and efficient application management lifestyle management.

The public cloud segment is growing as various SMEs embrace the public PaaS. It offers a wide range of data acquisition and provides infrastructure, including Hardware, OS, software, and middleware servers to run applications on a variety of platforms. In addition, businesses use public cloud services as they are easy to use. In addition, with the adoption of social cloud solutions, it becomes easier to access platform solutions, such as big data, data analytics, and the Internet of Things (IoT). To meet the growing need for community cloud solutions, various organizations are switching to community cloud offerings. For example, Red Hat OpenShift is a PaaS open source business. The company offers its own public PaaS version of OpenShift to its Red Hat Enterprise Linux (RHEL).

The trend of digital integration has been growing exponentially among large businesses. The growing connectivity of bandwidths and mobility systems can be very noticeable among large businesses, due to the presence of more employees. Big businesses have a large network of companies and many revenue streams. These organizations also have the desire to invest in new and up-to-date technology to run their business successfully. The PaaS market has a large business base, as IT infrastructure becomes more complex for large businesses compared to SMEs. The growing need for employees to access computer resources and applications in a portable environment and at any time has made it difficult for businesses to store their data efficiently, maintain and manage their data centers, and focus on their core business functions.

The demand for fast delivery and high productivity is growing rapidly. Cloud technology helps manufacturing companies meet these growing needs. It is imperative that vertical adaptation to global changes in computer connection and use. It is estimated that by 2023, about 50% of the software used by manufacturers will be cloud-based. The cloud has made it easier to embrace emerging technologies, such as Machine-to-Machine (M2M) and IoT communications, which has led to direct production transforming and streamlining digital processes on a large scale. These features accelerate the need for cloud computing, leading to improved customer service and easier food in a highly competitive market. Many manufacturers use PaaS services for many of their most important deployments. In conjunction with web-based software and applications, PaaS provides third-party hardware and software to connect and retrieve data within the factory. PaaS services help stand out in improving the efficiency of their firms.

The global PaaS market by region includes five major regions, namely, North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America. North America is expected to be the most promising region for major verticals, such as IT, BFSI, and telecommunications. A growing budget for cloud services between businesses is expected to drive the market in North America. North America is expected to be the most promising region for major verticals, such as telecommunications, IT and ITeS, BFSI, and government and the public sector. The market size of PaaS in North America is expected to grow steadily during the forecast period, as businesses use advanced application technology at various levels as part of their final strategy in a competitive market.

The major vendors offering PaaS solutions and services globally are AWS (US), Google (US), Microsoft (US), IBM (US), Alibaba Cloud (China), Salesforce (US), Oracle (US), SAP (Germany), Mendix (US), Zoho Corporation (India), Engine Yard (US), Apprenda (US), Render (US), VMware (US), ServiceNow (US), Scalingo (France), Plesk (Switzerland), CircleCI (US), Tray.io (US), Cloud 66 (UK), AppHarbor (US), Platform.sh (France), PythonAnywhere (US), Jelastic (US), and Blazedpath (US).

2 Market Overview

Definition & Scope

Platform as a service (PaaS) or application platform as a service (aPaaS) or platform-based service is a category of cloud computing services that allows customers to provision, instantiate, run, and manage a modular bundle comprising a computing platform and one or more applications, without the complexity of building and maintaining the infrastructure typically associated with developing and launching the application(s); and to allow developers to create, develop, and package such software bundles.

Currency, Year & Forecasts Overview

For companies reporting their revenues in other currencies, the average annual currency conversion rates were used for a particular year to convert the value to USD.

For companies reporting their revenues in USD, the revenues were taken from their respective annual reports/SEC filings.

The currency used in this report is USD, with the market size indicated in terms of USD million/billion.

3 Industry Analysis

Industry Value Chain Analysis

Key Companies At Each Phase Of Value Chain

Industry Trend Analysis

4 Market Analysis

Market Dynamics

Drivers

Restraints

Porter's Five Force Analysis

5 By Type

Introduction

Application Platform as a Service

Infrastructure Platform as a Service

Database Platform as a Service

Others

6 By Deployment

Introduction

Public

Private

7 By Organization Size

Introduction

Large Enterprises

Small and Medium-Sized Enterprises

8 By Vertical

Introduction

Banking, Financial Services, and Insurance

Consumer Goods and Retail

Information Technology and Information Technology-Enabled Services

Telecommunications

Manufacturing

Healthcare and Life Sciences

Energy and Utility

Other Verticals

9 North America

Introduction

United States

Canada

Mexico

10 Europe

Introduction

United Kingdom

France

Germany

Italy

Spain

Russia

Rest of Europe

11 Asia Pacific

Introduction

China

Japan

Australia & New Zealand

India

Rest of Asia Pacific

12 Middle East & Africa

Introduction

Middle East

Africa

13 Latin America

Introduction

Brazil

Mexico

Argentina

Rest of Latin America

14 Company Analysis

Introduction

IBM

Company Description

Founded in 1911 and headquartered in New York, US, IBM is one of the leading technology companies of the world with particular expertise in AI and cloud. IBM operates through five business segments, namely, cloud & cognitive software, global business services, global technology services, systems, and global financing. The cloud & cognitive software segment offers integrated & secured cloud services, and artificial intelligence solutions to its clients. The company’s suite of cognitive solutions is one of its major business areas, which addresses both generic and vertical-specific requirements. IBM has a broad range of AI based solution offerings for the healthcare industry, which significantly contributes in the company’s total revenue.

With employee strength of 3,45,900, the company operates in all major regions of North America, Europe, Middle East & Africa, Asia-Pacific, and South America.

Product Overview

IBM PaaS

15 Competitive Analysis

Strategy Dashboard Of Top Market Players

Market Share Analysis, 2021

16 Analyst Insights For Success

17 Research Methodology

This research study involved the usage of extensive secondary sources, directories, and databases such a Hoovers, Bloomberg Business, Factiva, and Avention, in order to identify and collect information useful for this technical, market-oriented, and commercial study of the global PaaS market. The primary sources were mainly industry experts from the core and related industries. These include service providers, technology developers, standards and certification organizations, and organizations related to all segments of the value chain.

In-depth interviews were conducted with various primary respondents, which include key industry participants, subject-matter experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information as well as to assess future prospects.

Various secondary sources were referred to for the identification and collection of information for this study. Secondary sources include annual reports, press releases, and investor presentations of companies, white papers, medical journals, certified publications, articles from recognized authors, gold standard and silver standard websites, directories, and databases.

Secondary research was mainly used to obtain key information about the industry’s supply chain, market’s monetary chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, geographical markets, and key developments from both market-and technology-oriented perspectives.

After the market engineering process (which includes calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation) was completed, extensive primary research was conducted to verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types; industry trends; key players; the competitive landscape of global PaaS market; and key market dynamics such as drivers, restraints, opportunities, challenges, and key industry trends.

In the complete market engineering process, both top-down and bottom-up approaches were extensively used along with several data triangulation methods to perform market estimation and market forecasting for the overall market segments and sub segments listed in this report.

18 Appendix

Available Customisations

With this full-market report, Consainsights offers customization options to our clients.

Custom Research: Consainsights offers custom research services across the Industries we track. In case of any custom research requirement, please send your inquiry at [email protected]

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