The platform as a service (PaaS) market has been forecast to increase at a compound annual growth rate (CAGR) of 32.5% over the next five years, rising from a valuation of $1.28 billion during 2013, to hit a market value of $6.94 billion by 2018.
PaaS is a category of cloud computing services that provide a computing platform and a solution stack as a service. Along with software as a service (SaaS) and infrastructure as a service (IaaS), it is a service model of cloud computing. In this model, the consumer creates the software using tools and/or libraries from the provider.
The consumer also controls software deployment and configuration settings. The provider provides the networks, servers, storage and other services.
Most companies worldwide are looking at standardising their operations through cloud computing. In the cloud computing arena PaaS has made its mark in recent years, showing subsequent growth.
PaaS is being mostly adopted so far by users in "mature economies," with the U.S. alone taking up 42% of the total market.
While PaaS revenue will remain "relatively modest" compared to other categories, the numbers don't reflect the true strategic importance of PaaS to software vendors, since a viable cloud development platform can help create a large ecosystem of partners and developers.
There are already more than 150 companies offering partial PaaS products, which is notable given the market's relatively small size. It's expected, therefore, that a rapid aggregation of PaaS components into suites will emerge.
Oracle and SAP have either announced or released PaaS technologies in recent months, hoping to keep pace with the likes of Microsoft Azure, Force.com and open-source options like OpenShift, which is backed by Red Hat.
Some of the consolidation predicted has already occurred, evidenced by Salesforce.com's late 2010 acquisition of Heroku, which provides a PaaS for applications written in Ruby, Java and other languages.
For more information on the platform as a service market, see the latest research: Platform As A Service Market
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