Analysis of the European Platform-as-a-service Market. The Need for Efficient Application Delivery will Influence PaaS Growth

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1 Analysis of the European Platform-as-a-service Market The Need for Efficient Application Delivery will Influence PaaS Growth April 2015

2 Contents Section Slide Number Executive Summary 5 Key Findings 6 Market Engineering Measurements 8 CEO s Perspective 9 Market Overview 10 Defining Cloud Computing 11 Cloud Computing Deployment Models 12 Defining Platform-as-a-Service 13 Technology Characteristics of Platform-as-a-Service 14 Regional Definition 15 Key Question This Study will Answer 16 Drivers and Restraints 17 Market Drivers 18 Market Drivers Explained 19 Market Restraints 22 2

3 Contents (continued) Section Slide Number Market Restraints Explained 23 Impact Mapping of Drivers and Restraints 25 Market Analysis 26 Market Trends 27 SWOT Analysis 28 Relevant Trends and Unmet Needs 29 Programming Languages Snapshot 30 Regional Analysis 31 Competitive Landscape 33 Competitive Environment 34 Market Participant Landscape 35 Representative Vendor Analysis 39 Acquia Inc. 40 Amazon Web Services, Inc. 41 cloudcontrol 42 3

4 Contents (continued) Section Slide Number Google 43 IBM 44 Interoute 45 Microsoft 46 Oracle 47 OutSystems 48 Red Hat 49 VMware 50 Partial List of Other Providers 51 The Last Word 52 The Last Word Predictions 53 Appendix 55 Market Engineering Measurements 57 Partial List of Companies Interviewed 58 List of Exhibits 59 4

5 Key Findings The European platform-as-a-service (PaaS) market is growing. Providers report that a large number of organizations that were previously not ready to adopt cloud solutions are starting to show tremendous interest in the potential of PaaS and are adopting it on the basis of their evaluations and assessments. As the economic slump within Europe continues to prevail, companies operating within Europe are prompted to explore new ways to streamline their operations and deliver greater cost efficiencies. Enterprises are looking to incorporate PaaS as their underpinning technology to facilitate their move to a DevOps culture, fueling further competition. PaaS vendors are now seeking to differentiate their offerings and are stepping up their game. The most popular cloud development platforms in 2014 were Java, Ruby, Python, Node.js, and PHP. Despite the increasing growth opportunities, the European PaaS market still faces many challenges. Topping the list of challenges is the lack of differentiation/clarity between infrastructure-as-a-service (IaaS) and PaaS offerings. 6

6 Key Findings (continued) Increasing demand to develop services faster by incorporating PaaS has allowed multiple vendors to operate in this space; however, no dominant market leader has emerged to date. Many small vendors such as CloudBees, AppFog, and AppHarbor have withdrawn from the market because of the challenges faced in competing with other big vendors. The 3 big vendors offering public PaaS solutions are Amazon Web Services (AWS) Inc., Google, and Microsoft. London is a hub to new business ventures. Participants from smaller regions in Europe are migrating to London because of the readily available technology and resources outside their home market. This trend has helped develop the PaaS market in London, indirectly affecting the home market of these participants. 7

7 Market Engineering Measurements Market Overview Market Stage PaaS Market: Market Engineering Measurements, Europe, 2014 Degree of Competition Degree of Technical Change Customer Price Sensitivity Growth (scale:1 [low] to 10 [high]) (scale:1 [low] to 10 [high]) (scale:1 [low] to 10 [high]) Competitor Overview Number of Competitors + (active market competitors in base year) Decreasing Stable Increasing For a tabular version, click here. Note: All figures are rounded. The base year is

8 CEO s Perspective The European PaaS market is growing, facilitated by the growth in mobile communications; however, the market still demonstrates a low adoption rate compared to the North American market. Service providers need to demonstrate more depth and resiliency in their solutions to overcome the consumers confusion and to offer PaaS as an option to IaaS. Increasing competition across industries has prompted many companies to look at technology as a way to innovate. PaaS is often considered as the ideal solution to underpin technological innovation. Service providers are using varying pricing models, the most prevalent of which are pay-as-you-go and subscription-based fee for the computing power and add-on services availed. Providers report the high levels of adoption in retail, airline, and manufacturing industries has been impressive, and the mobile backend support offered by PaaS is considered a major reason for the increasing investment. 9

9 Defining Cloud Computing Frost & Sullivan defines cloud computing as a service that delivers information technology (IT) resources in the form of computing power, storage capacity, software/application development environments, and business processes, which are built to leverage collaboration and interconnectivity over the Internet. Service Models Characteristics On demand Pay-as-you-use pricing structure Rapid elasticity easily scale up/down as per demand Based on virtualized IT resources Easily accessible using standard Internet protocols Software-as-a-service (SaaS) Enables access to a software over the Internet or private network Applications and related data delivered as a service PaaS Enables use of a fully functional development platform with tools to maintain and develop applications Platform for development, databases, tools to test, and store applications delivered as a service IaaS Enables use of computing power and storage space on demand Servers, data center space, and operating system delivered as a service Cost Efficiency Control 11

10 Cloud Computing Deployment Models Public Cloud Cloud services are offered to the general public and large organizations and are owned by third-party organizations. Servers and other infrastructure are shared among tenants. Users can access the resources to connect to the service through the Internet. Resources are offered on a pay-as-you-use fee structure. Advantages Public cloud offers on-demand scalability. Setup cost is low no capital investment for customers. Most vendors offer 99.99% uptime. Drawbacks Most users still have concerns over security and privacy. CAPEX = capital expenditure Private Cloud Community Cloud Hybrid Cloud Servers are dedicated to a single tenant or organization. Cloud services are offered solely for a single organization and are managed internally or by a third-party administrator. A private cloud setup can make use of un-used capacities already available in the existing data center to provide cost-saving benefits. Advantages Data security and privacy are more robust, compared to the public cloud. Drawbacks Setup costs are higher (equipment, software, and staff), compared to the public cloud. Drawing similarities from a private cloud setup, the community cloud setup allows 2 or more organizations with common privacy, security, and regulatory policies to share their infrastructure and computational resources. Advantages Setting up a communal cloud is cheaper than a private cloud as the costs are shared. Maintenance can be outsourced to a cloud provider. Drawbacks The fixed amount of bandwidth and storage is shared by all communal members. Hybrid clouds are a combination of 1 or more clouds (private, public, and community). Most hybrid cloud platforms are now open source. These solutions offer a choice to organizations to select an optimal deployment model for each workload, while managing them through a single platform. Advantages CAPEX is reduced by outsourcing part of the infrastructure to public cloud providers. Drawbacks Deployment model is complex, which causes some concern about data being shared between private and public clouds. 12

11 Regional Definition The following are the main regions analysed in the European PaaS market: o United Kingdom o Germany o France o Italy o Spain o Switzerland 15

12 Key Questions This Study Will Answer Is the market growing? What is the nature of the European PaaS market? What are the driving and restraining forces influencing the PaaS market? What are the developing trends in the PaaS market? Who are the key participants in the PaaS market, and what are their product offerings? Are the products/services offered today meeting customer needs or is there room for further development? 16

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