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    451 Research: Platform-as-a-Service (PaaS) Fastest Growing Area Of Cloud Computing

    By Louis Columbus | Small Business

    451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud Computing image public cloud computing forecast 2011 2016451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud ComputingThe majority of cloud computing revenue in 2012 was generated from vendors with sales over $75M (66%) and who are privately held (77%), with Platform-as-a-Service (PaaS) projected to attain a 41% compound annual growth rate (CAGR) through 2016.

    Market Monitor, a service of 451 Research, is also predicting 36% CAGR in cloud computing, growing from $5.7B in 2012 to $20B by the end of 2016 in their Cloud-as-a-Service overview report. Other research firms including Gartner have much higher forecasts for cloud computing in general and IaaS, PaaS and SaaS specifically.

    Market Monitor relies on a bottoms-up forecasting methodology that includes revenue analysis and forecasts from 309 cloud-services providers and technology vendors across 14 sectors. Their taxonomy defining Cloud as a Service is shown in the following graphic:

    451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud Computing image taxonomy cloud as a service451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud Computing

    Here are the key take-aways from the report:

    • The cloud computing market will grow from $5.7B in 2012 to $20B in 2016, attaining a 36% CAGR over the forecast period. The following graphic from the report shows the breakout of revenue on a yearly basis throughout the forecast period.

    451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud Computing image forecast breakout451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud Computing

    • Platform-as-a-Service (PaaS) will attain a 41% CAGR through 2016, generating 24% of total cloud revenues. 71% of PaaS revenues will be generated by vendors over $75M in sales according to the study.
    • Infrastructure-as-a-Service (IaaS) will attain a 37% CAGR through 2016, generating 51% of cloud revenue. 69% of IaaS revenues will be generated by vendors over $75M in sales according to the study.
    • SaaS will attain a 29% CAGR through 2016 and the distribution of revenue by vendor size shows how fragmented this area of the market is. The following is a summary table from the report showing distribution of sales by vendor and category.

    451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud Computing image distribution table451 Research: Platform as a Service (PaaS) Fastest Growing Area Of Cloud Computing

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