New Zealand Organisations' Adoption of PaaS Solutions is Increasing
IDC says New Zealand Organisations' Adoption of PaaS Solutions is Increasing
Auckland, 25th June 2019: Public cloud services vendor revenue grew 30.1% year-on-year (YoY), reaching $1.01 billion in
2018, according to IDC New Zealand's public cloud services tracker.
Software-as-a-service (SaaS) revenue, followed by infrastructure-as-a-service (IaaS) revenue continue to contribute the
largest portion of cloud services revenue in 2018.
PaaS was the only primary market to increase its growth rate in 2018 in comparison to 2017. PaaS revenue achieved YoY
growth of 45.6% in 2018.
Chayse Gorton, A/NZ market analyst for IT services, says, "PaaS adoption is growing as organisations embrace
cloud-native application development processes in higher numbers." To enable cloud-native application development
organisations are increasing the amount spent on application development and deployment platforms.
Gorton adds, "many businesses are purchasing PaaS solutions from their existing IaaS provider." This trend is putting
pressure on less-established IaaS providers, as forward-looking organisations seek to enable a future transition to PaaS
solutions.
Increasingly organisations will seek out PaaS solutions with specific capabilities; such as analytics and artificial
intelligence, and data management capabilities. These two secondary markets are already in hot demand, accounting for
62.9% of PaaS revenues in 2018.
In 2019, IDC predicts that PaaS solutions will gain share in the public cloud services market as more organisations
embrace cloud-native application development processes. PaaS solutions that can deliver on specific capabilities will be
highly sought after by technology buyers. Therefore, to succeed in the PaaS market, it will not be enough to rely on
existing IaaS customers; instead, vendors must be on a continuous journey to add innovative features into their
platform.
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