North America PaaS Market

North America PaaS Market

DMI segments the North America PaaS Market by geography into – US, Canada, Mexico

2022-05-06

Challenges to the adoption of PaaS

Platform-as-a-service is a kind of cloud computing system in which a service provider provides consumers with a platform that creates, runs and manages business applications without building and maintaining the infrastructure that such software development processes necessitate. Here are two main issues that are faced:

1. Cloud-washed PaaS

When marketing teams label their program to make it more appealing, they use the term cloud washing. PaaS systems that are cloud-washed differ from those that are cloud-native. PaaS products that have been cloud-washed have comparable architecture and programming approaches. The solutions only provide incremental progress and have limited cloud capabilities. Cloud-native solutions that inject behavior into applications, on the other hand, divorce application code from run-time infrastructure details, boost application density and make distributed interactions easier.

In many cases, end-users are frequently unable to tell whether a PaaS is cloud-washed or cloud-native. Cloud-washed solutions use many system resources (such as CPU and memory) and require a lot of administration. As a result, cloud-washed solutions are projected to threaten market growth.

2. Security concerns related to PaaS

Many businesses employ cloud services because they are cost-effective, scalable and simple to use. Cloud services provide stability, enhanced IT service and expanded data access flexibility, among other benefits. Although cloud services have various advantages, security worries about the public cloud are growing. The rise in fear of secret information being leaked from networks due to cyberattacks is a major market challenge that could hinder the industry's growth. In U.S., for example, ransomware and other cyberattacks accessed more than 3.34 million healthcare records on average every month between July 2020 and June 2021. Names, addresses, diagnosis information, contact information and insurance information were released. For instance, due to network outages induced by ransomware attacks, the American healthcare provider UHS lost roughly US$67 million in 2020.

 

The factors which are expected to augment the market growth

Customers can utilize PaaS to acquire a comprehensive cloud platform for developing, running, and administering applications without the cost, complexity or inflexibility of establishing and maintaining that platform on-premises. The most commonly-cited benefits of PaaS include:

1. The rising need to reduce the time and cost of app development

Companies' technology landscapes are rapidly changing, including how infrastructure is constructed and managed and how software applications are produced and distributed. Time to Market (TTM) is the time it takes for a company to offer a product or feature; it is a critical component in determining an organization's performance and the cost of developing its products. It's easier to launch a product when you have more control over the development process. Almost every company values TTM and strives to enhance it, yet most fail to achieve the TTM they desire due to inefficiencies in the broader digital landscape.

The key to empowering developers and improving customer engagement and experiences is digital transformation. Companies want to launch the product as quickly as feasible because the first software product to hit the market is expected to capture up to 70% of the market share. If companies fail to fulfill their TTM targets, they will suffer financial losses. A product presented six months later to the market will generate 33% less profit over five years. On the other hand, if a product is launched on time but costs 50% more than expected, the profit will be cut by about 4%.

Internal processes would be polished, the approach to software product development would be fine-tuned, development wastes would be avoided, and good cooperation would be ensured with less TTM and cheaper application development costs. As a result, firms are concentrating on lowering TTM and application development costs. To remain competitive, they must provide major version releases or minor upgrades on time.

2. Easy and cost-effective 

Scaling an on-premises platform is costly, wasteful and, in some cases, insufficient. It pushes companies to buy more computation, storage and networking capacity in advance of traffic spikes; much of that equipment lies unused during low-traffic periods. None of it can be scaled up in time to handle unanticipated surges. With PaaS, you can buy extra capacity and start using it right away, whenever you need it. PaaS saves money by letting a corporation avoid the costs of establishing and scaling an application platform through capital equipment. On the other hand, PaaS can lower/eliminate software licensing costs. It can also reduce your overall application management expenses by handling patches, updates and other administrative activities.

DataM Intelligence – The increased capital investment in mobile, online and enterprise application development presents a huge potential growth for the market. The platform-as-a-service market is expected to develop due to technological advancements in PaaS services, such as AI capabilities. During the forecast period, the COVID pandemic has benefited the platform-as-a-service (PaaS) industry, attributing to a significant shift toward the use of online & cloud platforms, an increase in demand for online shopping models,

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