SMB spending in PaaS

Platform as a service

Platform as a service (PaaS) is a type of cloud computing offering resources that enable delivering everything from simple cloud-based apps to cloud-enabled enterprise applications. Purchase of resources is done from a cloud service provider on a pay-as-you-go basis and is accessed over a secure internet connection. Internet as a service (IaaS) and PaaS are similar to each other, both containing servers, storage and networking along with development tools, middleware, database management systems and business intelligence services. PaaS is designed to support building, deploying, testing, managing and updating of the application. It also helps you to remove the complexities and high costs of buying as well as managing of software licenses.

SMB spending in PaaS

The small to medium businesses spending on PaaS correlates with that on IaaS, so as the IaaS market grows, so will the PaaS market. The COVID-19 pandemic has increased the usage of cloud computing platforms among both small and medium-sized businesses and organizations. Small and medium scale business spendings on PaaS will increase owing to the requirement of businesses to improve operational efficiencies in every possible way and reduce costs through the movement and allocation of technology at the most useful places. As the world gets over thrown by the huge crisis, there has been lot damage to the SMB’s, their spending on platform as a service grew significantly pre COVID-19 but is expected to be less than and the previous forecast due to the COVID-19 pandemic and businesses’ plan to take some more time or limit their investments in PaaS. It has been expected that growth in the PaaS market will resume its pre COVID-19 results in the long term, carried on by continued investments in technologies related to it, such as the public cloud.  Even due to the novel corona virus, vendors said that there will be a growth in the market despite the decline in the growth rates temporarily. COVID-19 will decrease the small and medium business spending on PaaS and then will increase at a very low speed in the short term and these businesses especially in the developed regions will be affected quite majorly by the pandemic, but is expected to increase in the long run. None the less, medium-sized businesses, which are among the most intensified users of small and medium businesses PaaS solutions, will be more strong and protected than small businesses, thereby curing and curving the long-term impact on PaaS revenue. As such, the long-term outlook for the PaaS market remains strong.

Increased SMB spending in the long run

Fatpos Global predicts that the PaaS market is anticipated to register a significant CAGR in the coming decade. SMBs will continue to use IaaS solutions as they modernise their businesses and as SMB spending on PaaS correlates with that on IaaS, the imapact on both will be high. PaaS solutions are an extension of public cloud platforms and thus enable the utilization of public cloud resources, thereby helping businesses to manage complexity and speed up application delivery.