Global PaaS market to reach $6.45B by 2016, says TechNavio
The global platform-as-a-service (PaaS) market is forecast to growth at a 49 percent compound annual growth rate through 2016, reaching revenue of $6.45 billion in 2016, according to a report by research firm TechNavio.
In 2012, North America accounted for the largest share of PaaS market revenue in terms of regions, and manufacturing accounted for the largest share of the PaaS market in terms of industries, according to TechNavio.
Key PaaS vendors include Salesforce.com (NYSE: CRM), Amazon (Nasdaq: AMZN), Microsoft (Nasdaq: MSFT), IBM (NYSE: IBM), Google (Nasdaq: GOOG), Intuit, VMware (NYSE: VMW) and Rackspace (NYSE: RAX). Other PaaS vendors examined by TechNavio include Longjump, Appirio, CA Technologies (Nasdaq: CA), Red Hat (NYSE: RHT), Oracle (Nasdaq: ORCL), BMC and Hewlett-Packard (NYSE: HPQ).
Reduced capital and operations costs are key drivers of the PaaS market, noted TechNavio's Enterprise Computing team.
"In traditional on-site projects, a lot of time is consumed in the creation of connections to all the different systems existing in the IT infrastructure of a company. With PaaS, the risk and resource requirements associated with the responsibility for implementation, continuous operation, backups, updates, and infrastructure maintenance of the applications is shifted from internal IT departments to PaaS vendors or service providers," the team noted.
In addition to lowering costs, PaaS vendors are providing business analytics and network optimization tools to enterprises, increasing the popularity of PaaS, particularly among small and medium-sized enterprises, according to the Enterprise Computing team.
A recent survey by TechTarget found that enterprises selected PaaS vendors "for their various ecosystems of partners, developers and independent software vendors (ISVs) that build commercial applications on top of their platforms."
A major challenge confronting the PaaS market is data security concerns. Particularly in a multi-tenant cloud model, "there is always a risk of information leaks, which could result in the misuse or manipulation of data," the TechNavio team observed.