teknowlogy I PAC’s new cloud market segmentation

Within its SITSI® “Cloud & Infrastructure” Cluster, teknowlogy I PAC publishes four datamarts with market volumes and growth forecasts for more than 30 countries and regions, comprising a great granularity of market segments and sub-segments:

  • Cloud – Public, Hosted & Managed by Segments [BaaS, SaaS, PaaS, IaaS; each divided into Hosted Private Cloud and Public Cloud]
  • Cloud-related Consulting, Systems Integration and AM by Segments
  • Software as a Service (SaaS) by Segments and by Vertical Sectors
  • IaaS, PaaS and Managed Cloud by Segments

At the beginning of October 2019, we have adapted the segmentation of our IaaS & PaaS datamarts to a more contemporary view on cloud services spending:



What has been changed?

Exclusively affected by the adaptation of the segmentation are the Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) market segments. We also exclusively adapted the sub-segments within the IaaS/PaaS market. The overall cloud services market remains unchanged, just like the SaaS and BaaS market segments, Cloud C&SI and Managed Cloud Services.

The graph below illustrates the major shifts within the segments, from the former segmentation on the left to the new segmentation on the right.



Why these adjustments?

The general IaaS/PaaS logic remains unchanged: IaaS is the basis of a cloud architecture. It comprises the dynamic provisioning of computing, storage, and network resources. PaaS sits on top of the IaaS architecture and, in addition, comprises the middleware, development platforms, web services, etc., that enable users – in particular application developers and IT architects – to develop applications within the cloud and/or operate them.

In the first years of the emergence of cloud computing, cloud services were mainly considered as an alternative to hardware expenditure and to traditional hosting models. PaaS was more or less an enabler for IaaS usage.

Meanwhile, customers’ demand has been diversifying. They still want to benefit from flexible and scalable infrastructures with global reach. But they are also looking for cloud-based services that support their digital journey and data-centric businesses. Cloud platforms are very commonly used as innovation platforms, providing a flexible and cost-effective environment on which new developments can be trialed and eventually delivered. But organizations are also becoming more open towards heavy cloud migrations, increasingly comprising complex enterprise applications.

With the continuous enrichment of the cloud platforms by services beyond mere infrastructures, also the value proposition changed; meanwhile, a differentiation of the platforms does not only take place at cost, reliability and security levels, but very much at PaaS level, with services like analytics, machine learning or AI capabilities.

PaaS solutions however have often been priced at infrastructure level, which makes it difficult to draw an exact line between IaaS and PaaS spending. The assignment of use cases to IaaS and PaaS can help to get a structured view of the market. But the concrete use case is of much bigger relevance: customers hardly buy “IaaS”, they aim at hosting their enterprise applications, want to build new web services, are keen to benefit from advanced analytics functionality or just want to store large amounts of data.

This is why we believe our new – strictly use case-based – IaaS/PaaS segmentation better reflects the nature of cloud services expenditure.

When will the new figures be published?

First local datamarts with the new segmentation are already available on our SITSI® platform for Germany, France and the UK. The remaining countries and regions will follow successively. In the meantime, all IaaS/PaaS datamarts are still available with the former segmentation).