Gartner: Market Leaders Failed to Capitalize on PaaS Growth in 2015

Keith Guttridge, a research director at Gartner, explained, what is sort of an anomaly in (AIM) software in 2015: The year of alternatives to traditional software-based integration.  Simply put, “Buyers are choosing iPaaS due to its lower entry costs, reduced operational demands and improved productivity.”

Platform as a service(Paas) offers built in scalability and elasticity to provide the same efficiency and experience regardless of load and usage as traditional on-premises technologies. The evolution of, and transition to cloud services, pushes application infrastructure spending away from older models, toward event-driven analysis and processes.

Fabrizio Biscotti, research director at Gartner explained that, “Integration PaaS (iPaaS) grew 55 percent in U.S dollars, while application PaaS (aPaaS) grew 40 percent, despite headwinds from the appreciating U.S. dollar.”

So then why has revenue in AIM software fallen since 2014? Statistics are telling a different story. According to Gartner, In 2015, the largest vendors retained their market positions, but market leader IBM suffered a revenue decline of nearly 13 percent, falling to 25 percent of the total AIM software market.

“Oracle’s revenue also dropped, by nearly 4 percent, capturing 13 percent of the total market. Microsoft’s 5 percent revenue growth meant it was the only one of the top three players to grow its revenue. Salesforce retained the fourth spot, while Software AG dropped out of the top five — switching places with TIBCO Software.”

PaaS is steadily rising across the globe, with enterprises shunning traditional on-premise tools on business agility grounds- yet- currently for the most taxing application infrastructures, statistics suggest that businesses still rely on older technology. With the changing landscape, CIO’s of large vendors may have no choice but to warm up to  the idea of a more affordable, “pay-as-you-go”, or “per service” model – which is the clincher to many small businesses who invest in ‘As a Service’ products.
Find out more about PaaS providers, and other top cloud platform vendors in our free 2016 Buyer’s guide.