COVID-19 will lead to a temporary reduction in PaaS SMB expenditure but the long-term outlook is strong

COVID 19 will lead to a temporary reduction in PaaS SMB expenditure but the long term outlook is strong

Published on : Nov-2022

Platform as a service

Platform as a service (PaaS) is a type of cloud computing offeringresources that enable delivering everything from simple cloud-based apps to cloud-enabled enterprise applications. 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 to remove the complexities and high costs of managing software licenses.

SMB spending in PaaS

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 spending on PaaS is expected to increase owing to the requirement of businesses to improve operational efficiencies. 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. 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. These businesses especially in the developed regions will be affected majorly by the pandemic but are expected to increase in the long run. Medium-sized businesses, which are among the most intensified users of small and medium businesses PaaS solutions, will be stronger and more protected than small businesses, thereby showing a long-term impact on PaaS revenue.

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 modernize their businesses and as SMB spending on PaaS correlates with that on IaaS, the impact 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.

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