Rising adoption of cloud computing due to its advantages in terms of reduction in cost set up complexity and accessibility to expand the market growth
Each application traditionally requires hardware, an operating system, a database, middleware, servers and software. Platform-as-a-Service is popular among SMEs because it allows companies to add hardware, middleware, OS, software, and resources. Its customers have numerous benefits, including not investing in hardware, network infrastructure or software licenses, especially for small and medium businesses. The major driving factors of cloud computing are low upfront costs, rapid deployment, configurable features and flexibility.
Currently, around 90% of social media companies' services are hosted on the cloud due to their accessibility. IBM, for example, has announced two new services to help businesses migrate their apps and data to computing called IBM CCE Migration Services and IBM CCE Deployment Services.
The vendors provide businesses with a significantly improved security solution. For example, Microsoft monitors over 6.5 trillion danger signals every day, managed by a staff of 3,500 in-house security professionals whose primary goal is to secure clients' systems and data. Shifting to the cloud puts security resource demands in the hands of the computing provider, allowing businesses to focus on other things. Other advantages, such as disaster recovery, increased cooperation, mobility, insight, collaboration, quality control, software and hardware renewal cycles, capacity requirements, etc., encourage businesses to embrace the growth.
Because of the cloud's huge source of IT infrastructure, corporations are increasingly implementing it to manage the expanding amount of data collected. The reliance will only rise in the future. According to Fremont Rider, the American University Library, for example, is expected to double in size every 16 years, with over 200 million books in its collection by 2040. The vast amount of data necessitates multiple data centers that may communicate with one another via the cloud.
According to Cisco, cloud computing data centers will process 94% of workloads and compute instances by 2021, while traditional on-premise data centers will handle only 6%. Various company models, such as B2C, B2B and B2G, increasingly employ virtual meeting apps, digital counseling (education, healthcare) and connected applications via the cloud for efficiency in business operations and market outlook.
At the back of the factors, along with research and development, the region's PaaS market size is on the course to surpass the US$ XX Bn mark by the end of 2030.
Great evolutions in cloud computing and government efforts to boost migration to augment growth
PaaS solutions in public enable businesses to use extra processing power and storage. It is very useful for consumers that only require increased resources for a short time. The high scalability and stability of PaaS are the primary reasons for its adoption by businesses. Organizations can use a hybrid solution to deploy apps on-premises or their private cloud. It enables enterprises to switch cloud service providers based on their needs, avoiding vendor lock-in.
Locking yourself into a single cloud service provider or a specialized data center infrastructure vendor won't help you save money in the future period. As a result, computing solutions enable application portability across several clouds, allowing users to take advantage of its flexibility and cost savings. PaaS services can now be used with little or no coding knowledge, giving small and medium businesses the flexibility to plan and execute their operations as needed, without the need for a highly skilled and expensive IT team (or a third-party service) to deploy and maintain their application on a localized server.
The vendors offer faster scaling, maintenance and debugging of their applications than traditional techniques and teams, making it easier for enterprises to reduce their time to market for their apps and services. North America has the biggest regional distribution in terms of cloud purchasers, with roughly 516,000 in 2019 and 485,000 in terms of cloud hosting buyers, according to Intricately.com. For example, as part of U.S. Federal Cloud Computing Strategy, U.S. government announced the CloudFirst policy to accelerate cloud adoption.
Offerings and innovative technologies in PaaS solutions are revolutionizing modern organizations and acting as a driving factor for market growth.
The growing attractiveness of IoT and adoption of PaaS service is increasing the demand for AIM-type solutions.
AIM stands for Application Infrastructure Middleware and it is a software layer that connects applications and objects. It is mostly utilized to answer challenges such as heterogeneity, interoperability, security and reliability that are frequently faced.
The growing popularity of IoT and the global adoption of Industry 4.0 is a driving factor in demand for AIM through Cloud, which aids in the efficient synchronization of IT infrastructures. It has made it easier to integrate emerging technologies like Machine-to-Machine (M2M) communication and the Internet of Things (IoT), which have driven the manufacturers to digitalize and alter operations on a wide scale.
According to Cisco, machine-to-machine (M2M) connections, which enable many IoT applications, will account for over half of all global devices and connections. As a result, the rapid rise of IoT is projected to enhance the market demand for AIM-type solutions. The factors drive up on-demand data computing, resulting in better customer service and easier survival in a highly competitive industry. Many businesses turn to service solutions to help them with their DevOps methods and cloud-based business analytics.
Furthermore, businesses migrate to public PaaS to deliver high availability to their clients and scale their cloud-based products with minimal IT infrastructure investment. Businesses prefer private services for various reasons, including security, control and the ability to personalize their environment.
The constant rise in IoT and platform adoption as a service solution is projected to act as the driving factor in increasing the market sales across the region during the assessment period.
COVID-19 Pandemic had a positive impact on the market
During the forecast period, the COVID pandemic has benefited the platform-as-a-service solutions, owing to a great shift toward the use of online and on-demand data platforms, as well as an increase in market sales for online shopping models, causing many businesses to turn to implement PaaS solutions to help scale-up their cloud presence.
Many companies believe that as digitization grows, payments will become more cloud-native, allowing them to employ local, cross-border and regional payment systems through a single interface. Furthermore, providers want to deal with shifting cash complications and market challenges. As a result, the platform as a service market is likely to benefit from digitalization and online payment and the development of new products.
DataM Analysis Report
North America Platform-as-a-Service market is expected to expand at a CAGR of XX% during the forecast period. The expanding acceptance of cloud computing is primarily driving its expansion. Its benefits in terms of cost savings, set-up difficulty and accessibility greatly expanded data computing and government activities and increased online commerce and transactions. Market players should closely monitor new market trends and shift towards PaaS. It eases the load on organizations by focusing on the development and business end rather than dedicating crucial and expensive IT resources to the organizations. It, in return, helps to gain a competitive edge in the current business landscape.
Market Overview
- According to DataM Intelligence's latest research report on the PaaS market in North America for the historic period, 2019 and the forecast period 2020–2030, the rising adoption of data computing services due to its advantages in terms of reduction in cost set up complexity and accessibility is a factor expected to boost the market in North America during the forecast period.
- In terms of revenue, the PaaS market size in North America is estimated to surpass US$ XX Bn by 2030, expanding at a CAGR of XX% throughout the forecast period.
Key Driver
- Platform as a service is a cloud-based growth and deployment model that supports everything from simple to modern cloud-based apps and enterprise systems.
- A lack of standardization is also a major contributor to vendor lock-in in the platform-as-a-service sector. Furthermore, many customers are unaware of the standards that ensure application interoperability and portability while using vendor services. The major market players address this difficulty by maintaining positive business connections with their customers, ensuring that they continue to use their services.
- The mobile ecosystem is rapidly expanding and app development has emerged as a critical component in the expansion. The creation of mobile enterprise apps is becoming a key concern for firms due to the growth of digital enterprises. PaaS suppliers provide a collection of capabilities for tablet, mobile and online platforms, including data recovery, backups, security, licensing formalities, support, maintenance and server-based scalability.
- Thus, focusing on mobile app development is expected to offer lucrative opportunities for the PaaS solutions in North America during the forecast period.
The rise in availability of pay-per-use innovation
- The availability of pay-per-use innovative technology and high performance is expected to create opportunities in North America PaaS Market over the forecast period. Subscribers are given pay-per-use features for which they must pay a subscription price based on the company's demands.
- It is extremely beneficial because subscribers may utilize the platforms to improve, operate, test and deploy apps and grow the number of users as needed.
- As a result, it streamlines application development management, deployment and scalability, allowing for greater developer flexibility and change.
- Furthermore, the pay-as-you-go model, which service providers in the region offer, has encouraged PaaS adoption positively.
- As a result, an increase in pay-per-use subscriptions is expected to boost the demand.
Competition Landscape
- Detailed profiles of major market players providing PaaS solutions are provided in the report, including financials, company profile analysis, market revenue analysis, import and export, recent developments and market strategies analysis, key product/service offerings and an overview of the company
- Key players operating in the region's PaaS market are Microsoft, Oracle, International Business Machines Corporation, Cisco Systems Inc., Google, SAP SE, Salesforce.com, Inc., Quickbase, Inc., ThoughtSpot, Inc. and QlikTech International AB
Strategic Partnerships
- Major market players of PaaS solutions in North America, such as IBM Corporation, Oracle and Microsoft, focusing on strategic partnerships and acquisitions to expand their footprint. Some other key market strategies in the PaaS market in North America are highlighted below:
- IBM, for instance, announced the general release of IBM Cloud for Financial Services in April 2021, which includes support for native services such as Red Hat OpenShift. It includes over 200 API-driven, cloud-native PaaS used to create this financial services-ready platform.
- In February 2021, Microsoft released Azure Stack HCI, a new hybrid cloud offering (hyper-converged infrastructure). This software stack combines PaaS and IaaS to provide up-to-date security, feature and performance updates.
- In November 2019, Salesforce.com, Inc. partnered with Microsoft Corporation to assist customers in meeting evolving business needs.
- The focus of key organizations is on collaboration and cooperative efforts to strengthen commercial presence. For example, in July 2019, AT&T Inc. partnered with Microsoft Corporation to deliver cloud, 5G and AI advancements.
- In North America Platform-as-a-Service market report, we have discussed individual strategies, followed by company profiles of providers of PaaS solutions. The 'Competitive Landscape' section is included in report to provide the readers with a dashboard view and competitive analysis of key players operating in North America PaaS market.
