Nearly half of today’s platform as a service (PaaS) offerings are cloud-only, according to Gartner. Currently, there are more than 360 vendors across 21 market segments, delivering more than 550 PaaS offerings. Forty-eight percent of these offerings are cloud-only. Not a single vendor has a foothold across all 21 segments, and 90 percent of them only operate within a single PaaS market segment.
“Business and technology leaders are shifting to strategic investment in cloud computing,” said Yefim Natis, research vice president and distinguished analyst at Gartner. “Cloud computing is one of the key disruptive forces in IT markets that is gaining mainstream trust.”
“Although many organizations anticipate a long-term retention of on-premises computing, the vendors of nearly half of the cloud platform offerings bet on the prevailing growth of cloud deployments and chose the more modern and more efficient cloud-only delivery of their capabilities,” said Natis. Enterprise IT spending for cloud-based offerings will surpass spending for noncloud IT offerings by 2022, according to Gartner.
The total PaaS market revenue is forecast to reach $20 billion in 2019, and to exceed $34 billion in 2022, according to the latest forecast from Gartner. In this shift to cloud, database and application platform services represent the largest market segments, with blockchain, digital experience, serverless and artificial intelligence/machine learning (AI/ML) platform services as the newest.