The PaaS Market

Platform-as-a-service (PaaS) is a type of cloud-based service that allows users to access a ready-to-use platform online, without having to manage an on-premises infrastructure for it. PaaS offerings include all the resources needed to run and develop applications over an internet connection.

PaaS solutions are used by companies to gain access to a private or public platform, without spending the human and financial resources towards maintaining it.

See below to learn all about the global PaaS market:

PaaS market

In 2020, the PaaS market had an estimated value of $47.29 billion. Forecast to maintain a compound annual growth rate (CAGR) of 13% for the period from 2020 to 2025, it’s expected to reach $88.11 billion by the end of it.

Regionally, the global PaaS market is driven by various markets.

• The U.S. market had an estimated value of $5.6 billion in 2020
• The Chinese market is forecast to maintain a CAGR of 20%,reaching a value of $12 billion by 2027
• Japan and Canada are each expected to grow at rates of 18.1% and 17.3% over the forecast period from 2020 to 2027
• In Europe, Germany has one of the highest CAGR rates at 14.2%
• The Asia-Pacific market, led by Australia, India, and South Korea, is expected to reach a value of $8 billion by 2027

By industry vertical, the banking, financial services, and insurance (BFSI) industry held the largest market share in 2020, followed closely by IT and telecommunications.

Other notable industries in the PaaS market include:

• Health care
• Retail and e-commerce
• Government
• Energy and utility
• Manufacturing

PaaS features

PaaS cloud offerings tend to focus on software developers and engineers as the typical end user. Accessible remotely over an internet connection, PaaS solutions are available in different types depending on the specific needs of developers:

Public PaaS

Public PaaS offers users the ability to access the platform remotely, leaving the supplier to handle the physical and digital infrastructure of the cloud.

Run on a public cloud, public PaaS solutions are a cheap option since the server is shared with multiple tenants.

Private PaaS

Private PaaS has the same functionality and accessibility as public PaaS except for other tenants. This allows users to configure the platform to suit their needs and increase the privacy and security standards.

Similarly, the cloud is managed by a third-party service provider.

Hybrid PaaS

Hybrid PaaS is an offering that combines both private and public PaaS.

Including the advantages of both PaaS types, users can optimize for price and security by running certain operations on the private cloud platform and others on the public.

Communication PaaS

Communication PaaS (CPaaS) enables software engineers to maintain communication with the apps without needing a back-end foundation or interfaces.

Mobile PaaS

Mobile PaaS (MPaaS) is a specialized PaaS type that includes the life cycle management, analytics, and development environment specifically for developing mobile applications.

In MPaaS, minimal coding abilities are needed, allowing users to focus on the development of the applications through integrated gadgets and tools.

Open PaaS

Open PaaS (OPaaS) is a free online platform that offers all the functionality and features of a business-owned PaaS offering at no cost.

Users are able to develop and run applications without having to purchase and maintain the infrastructure needed on-premises or remotely themselves.

“Unlike IaaS, companies utilizing PaaS receive more than on-demand hardware. At the same time, they aren’t constrained by the preconfigured options of SaaS,” says Sudhir Mehta, a member of the Forbes Technology Council.

“With PaaS, companies receive a developer-ready framework that is easy to integrate and can still be uniquely customized to their needs. Many PaaS providers offer the ability to manage software development infrastructure, from operating systems, servers, and storage to networking.”

Benefits of PaaS

PaaS aims to help developers and engineers focus on creating mobile and web applications, without needing to dedicate time, energy, and cost to directly manage the physical servers supporting the platforms.

Some notable benefits of PaaS solutions include:

• Cost and time-efficient
• Eliminates the need for on-premises infrastructure
• Reduces pressure on in-house IT resources
• Decreases time-to-market for applications
• Enables the development of apps for multiple platforms
• Easily scalable for increased traffic
• Integrated app development tools

“PaaS offers the ability to simplify and automate many repetitive development tasks, freeing IT staff to focus on higher-level work rather than installing software updates and other time-intensive tasks as well as driving organizational efficiencies,” says Sudhir Mehta, a member of the Forbes Technology Council.

“Essentially, aPaaS can make the development of new applications more accessible, removing the need for specialized developer talent.”

PaaS use cases

PaaS platforms are versatile in the realm of software and app development. Companies can use various types of PaaS offerings to simplify their application development processes.

The following case studies show how various organizations are using PaaS solutions from providers:

UBank

UBank is a digital-only bank that offers banking and financial services online and over the phone. Headquartered in Sydney, Australia, it eliminates major business costs by not maintaining in-person offices and branches. 

In order to maintain its cloud-based model whilst upscaling and releasing new and innovative features and products, UBank was looking for a PaaS cloud development solution. 

Using both IBM Cloud Platform environment and PaaS, UBank was able to run a virtual agent that incorporates IBM Watson technology to support its banking application.

“The attraction for us in moving to a PaaS solution was the idea of giving more control to our developers and reducing the need for additional resources,” says Jeremy Hubbard, head of digital and technology, UBank.

“IBM is helping us implement our vision of our ideal operating model. … We’re fostering an environment that removes barriers and drives innovation.”

With IBM Cloud and PaaS, UBank was able to speed up time to market for its products, support rapid innovation, and open the door for future collaboration with IBM.

Depop

Depop is a community-driven online shopping and retail experience based in the U.K. Depop lets users sell and discover fashion items, helping the fashion industry to become more sustainable and inclusive through second-hand shopping and online thrifting.

Depop needed a new platform solution as it was reaching the limits of its existing PaaS technology. Choosing to migrate itself to AWS, Depop needed to understand and implement numerous cost-saving measures and monitoring that the AWS services offer.

“With our PaaS provider, we were facing several challenges, such as scalability limits, lack of flexibility in how we scale our applications, and constraints in the way solutions are built due to a fully managed, but limited, set of available capabilities,” says Robert Erdin, director of applications and services, Depop.

“To support a product and engineering organization of over 100 people in nine cross-functional teams with only a handful of engineers dedicated to maintaining infrastructure … no matter what you want to do, there is an AWS service for it.”

With the AWS PaaS solution, Depop was able to increase the number of developers working on its application from two to eight, allowing for more testing and a shorter time to market for updates.

Elcatex

Elcatex is a manufacturing company of raw materials in the textile industry. Based in Honduras and founded in 1984, it’s a major producer of textiles in Central America, carrying over 30 companies under its name and expanding to more industries.

Seeking to transform its digital environment to accommodate the growth in both assets and market demand, Elcatex started by migrating its infrastructure to the Microsoft Azure cloud, where it made use of Microsoft PaaS in the workplace.

“Microsoft Azure SQL Database and App Service provide us with the intelligence we need to effectively adjust and scale to meet the data processing demand we have, taking advantage of all the power offered by a PaaS solution,” says Carlos Mejía, director of technology, Elcatex.

“In addition, the scalability provided by Microsoft services translates into savings for Elcatex in terms of infrastructure, since we only use the service when required.”

Working with Microsoft, Elcatex was able to support its 10,000 employees and automate monthly payroll, which used to take 10 hours of manual work at a time.

PaaS providers

Some of the top providers of PaaS services in the market include:

• AWS
• Microsoft
• Google Cloud
• IBM
• Oracle