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February 25, 2013
Hosting market segmentation (III)
Public cloud market segmentation based on integration typeThe word “Cloud” can mean many things. And, as the cloud cannot be ignored, it is important to do at least a summary segmentation before we analyze it more deeply.There are major distinctions between the types involved: SaaS - Software as a service is mostly the type of applications that were otherwise sold via on-premise software and that have now been transformed into a service and are being delivered as a web application. End customers use it. This is usually built on top of a IaaS or PaaS offering.IaaS - Infrastructure as a service offering. This is the market segment that overlaps with traditional hosting. A service like this offers VMs dynamically, together with virtual network, load balancers etc. To use it you must have technical background. Usually, the IT department interacts with it directly. It is a supplier for a SaaS or PaaS offerings.PaaS - Application level infrastructure offerings. Programmers interact with this service to: make payment gateway integration, DB scaling, queue scaling, object storage. It is usually built on top of a IaaS offering and can be a basis for SaaS offerings.
Public cloud market segmentation based on integration type
The word “Cloud” can mean many things. And, as the cloud cannot be ignored, it is important to do at least a summary segmentation before we analyze it more deeply.
There are major distinctions between the types involved:
- SaaS - Software as a service is mostly the type of applications that were otherwise sold via on-premise software and that have now been transformed into a service and are being delivered as a web application. End customers use it. This is usually built on top of a IaaS or PaaS offering.
- IaaS - Infrastructure as a service offering. This is the market segment that overlaps with traditional hosting. A service like this offers VMs dynamically, together with virtual network, load balancers etc. To use it you must have technical background. Usually, the IT department interacts with it directly. It is a supplier for a SaaS or PaaS offerings.
- PaaS - Application level infrastructure offerings. Programmers interact with this service to: make payment gateway integration, DB scaling, queue scaling, object storage. It is usually built on top of a IaaS offering and can be a basis for SaaS offerings.
Can be built using | Market size (Billions) | Market size % | ||
| SaaS/BPaaS | Paas, IaaS, HaaS | Services such as Gmail, salesforce, Microsoft Office 365, Google docs and virtually all of today’s websites can be considered software delivered as a service. | 98.6 | 93.02% |
| PaaS | IaaS, HaaS | Services such as Amazon S3, Microsoft Azure SQL. | 1.2 | 1.13% |
| IaaS | HaaS, SaaS | Services such as Amazon Ec2, Microsoft Azure VMs are partially within this frame. | 6.2 | 5.85% |
total (Billon $) | 106 | 100.00% |
The figures are based on a Gartner study[1]
According to it, the Cloud market is 93% of it based on Saas services that have nothing to do with hosting. The rest is mostly IaaS, with very few PaaS offerings. Amazon AWS and Microsoft Azure both offer PaaS and IaaS services.
[1] Forecast Overview: Public Cloud Services, Worldwide 2012 Q2
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