PaaS provides high-level programming ability with significantly fewer complexities and is one of PaaS technology's highly promoted advantages these days
In enterprises, the general application development will be more efficient, as it can barrow built-in infrastructure from cloud providers and industry insiders are expecting that they will be more dependent on PaaS in the future
SMEs are more flexible than large firms and are expected to move to PaaS rapidly and begin taking advantage of cloud computing services, innovative tools, fast application development compared to large enterprises
PaaS service providers always provide the 6newest and updated development platform. PaaS clients generally get the newest development tools, upgraded software versions and the latest bug fixes. Which mean enterprises can get a substantial strategic benefit over business competitors as the company is developing application with most updated and improved technology
According to industry insiders, innovative business models by cloud vendors will emerge that accelerate the deployment of edge computing to compete among themselves in the near future. Additionally, AI and 5G will also facilitate the expansion of edge usability
Large vendors such as Dell, HPE, IBM and Intel are investing on edge with cloud-like technology, data center colocation and content delivery networks. The companies are providing edge computing services through hundreds or thousands of local points of presence
The need of private firms to serve local customers will force them to adopt edge computing more than public cloud computing, whose strategy is based on massive data centers and strict control of architecture
Enterprises are applying network edge to overcome the gap between the centralized cloud and end-users, offering low-latency application and content performance for all end-users. According to industry insiders, integrating a distributed edge computing strategy within a broader cloud computing range is key to innovation in future
Market Dynamics
Drivers
- Growing demand for cloud services between all level of enterprises
- Growing adoption of cloud computing due to various advantages in terms of reduction in cost set up complexity and accessibility
- Dependence of app developers on Cloud for Basic Infrastructure
Restraints
- Risk of cyber-attacks and data theft
- Vendor lock-in Problem
Growing adoption of cloud computing due to various advantages in terms of reduction in cost set up complexity and accessibility
Cloud users are provided with lots of advantages, such as not investing in hardware, network infrastructure, or software licenses, which is particularly helpful for small & medium enterprises. The main features of cloud computing, such as low up-front costs, rapid deployment, customizable features, and flexibility, are driving the growth of the cloud market
At present, about 90% of social media companies’ services are on the cloud due to its accessibility. For example, to improve its business, IBM has declared two new services for enterprises to shift their applications and data to cloud computing called IBM CCE Migration Services and IBM CCE Deployment Services
To manage the growing amount of data generated, companies are depending more on the cloud than on-premise due to the cloud’s massive source of IT infrastructure and it seems that the dependency is going to increase more in the future. For instance, according to Fremont Rider, the American University Library may grow double in size every 16 years and projected that by 2040, this library would contain over 200 million volumes of books. The massive amount of data requires many data centers, which can work in sync through cloud
Cisco predicted that, by 2021, cloud computing data centers would process about 94% of workloads and compute instances and traditional on-premise data centers will handle only 6%. There are various business models such as B2C, B2B and B2G, which are increasingly using virtual meeting apps, digital counseling (education, healthcare), connected apps through cloud for efficiency in business operations, the market growth
Geographical Analysis
Asia-Pacific is estimated to have the highest growth rate in the PaaS market due to rapid growth in the economy of various countries in this region, government support in terms of expansion of IT infrastructure, easy availability of technical professionals and presence of a strong IT market.
The Asia-Pacific PaaS market was valued at US$ XXmillion in 2019 and is expected to reach US$ XX million in 2027 due to the dominance of China in terms of availability of digital services as well as the growing adoption of online services in various industries.
The dominance of China can be known from the fact that Asia-pacific has 27% share of the business capitalization value of the world’s 70 biggest digital platforms and from that, China’s share is around 22% globally.
In terms of cloud computing, China is the dominating market along with the U.S., which was more than 75% in 2019 according to UNCTAD.
In terms of cloud traffic, Asia-Pacific has the second-highest share and was three zettabytes in 2019. According to the prediction of UNCTAD, it is expected that the growth rate in cloud traffic will be about 29% in the forecast period.
In terms of spending on the Internet of Things (IoT), China has 24% share, followed by Japan with 9% share. China is the second most spender in IoT. The growing use of cutting-edge technologies such as IoT in Asia-Pacific countries is expected to generate high revenue for PaaS vendors.
The robust IT sector of East Asia and South Asia are expected to increase the business of the PaaS market in the Asia-Pacific region.
Enterprises in the Asia-Pacific region are discovering that the public cloud allows them to boost growth by improving productivity, customer service and customer engagement, along with decreasing the time and cost of bringing novel products or services to market. Additionally, many companies also have substantial benefits in the public cloud’s capability of providing security at a scale that sometimes exceeds what even large companies can afford. Such types of benefits are driving the market growth of cloud in this region.
