Market leaders failed to take advantage of PaaS growth

If it weren't for the strengthening of the US dollar, the worldwide growth in the application infrastructure and milldeware (AIM) software last year would have been 7.8 per cent.

This way, it will have to settle for a 0.1 per cent increase year-on-year. Those are the latest figures from market analysts Gartner. The revenue in this industry climbed up to $23.9 billion in 2015.

"The PaaS segment showed the most impressive growth, not just in the AIM market but across the entire enterprise software market," said Fabrizio Biscotti, research director at Gartner. "Integration PaaS (iPaaS) grew 55 per cent in U.S dollars, while application PaaS (aPaaS) grew 40 per cent, even despite the headwinds from the strong US dollar."

Gartner says the cloud infrastructure has matured, and now offers more agility, scalability and efficiency than the traditional, on-premise technologies.

"Market concentration among the largest vendors is diminishing under pressure from specialists, and open source and cloud providers," said Mr Biscotti. "The growth of iPaaS and aPaaS has, largely, not worked out to the benefit of the market incumbents."

Even though the largest vendors kept their positions, Oracle has closed in on IBM, which has suffered a 13 per cent decline in revenue last year. The company now sits at 25 per cent of the total AIM software market, followed by Oracle with 13.3 per cent.

"Salesforce continues to disrupt the AIM market, with its revenue growing more than 36 per cent to just over a billion dollars," said Mr Biscotti. "Salesforce's strong performance, as well as steady growth in the ‘Others’ category, underlines the trend of cloud-only firms and smaller specialists picking up market share at the expense of traditional vendors in this space."

The full report, entitled Market Share: All Software Markets, Worldwide, 2015, can be found on this link.

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