Platform as a service (PaaS) is a cloud computing model that provides a complete on-demand cloud platform—hardware, software and infrastructure—for developing, running and managing applications.
It does so without the cost, complexity and inflexibility that often comes with building and maintaining platform on premises.
The PaaS provider hosts everything—servers, networks, storage, operating system software, databases and development tools—at their data center. Typically, customers can pay a fixed fee to provide a specified amount of resources for a specified number of users, or they can choose "pay-as-you-go" pricing to pay only for the resources they use.
Either option enables PaaS customers to build, test, deploy, run, update and scale applications more quickly and inexpensively than if they had had to build out and manage their own on-premises platform.
According to a report from Statista, in 2024, the PaaS global market is estimated to be worth over 176 billion US dollars. The study contributes this growth to the value PaaS brings by simplifying infrastructure management for software application development.1 Additionally, as the generative AI market accelerates, PaaS is also proving to be instrumental in its development and deployment.
Every leading cloud service provider—including Amazon Web Services (AWS), Google Cloud, IBM Cloud® and Microsoft Azure—has its own PaaS offering. Popular PaaS solutions are also available as open source projects (for example, Apache Stratos, Cloud Foundry) or from software vendors (for example, Red Hat OpenShift and Salesforce Heroku).
Check out this lightboard video, "PaaS Explained," to further understand how PaaS works.
The most commonly cited benefits of PaaS, compared to an on-premises platform, include the following:
With PaaS, there's no need to purchase and install the hardware and software you use to build and maintain your business application development platform (and no need for development teams to wait while you do it). You simply tap into the cloud service provider's PaaS to begin provisioning resources and developing immediately.
PaaS platforms typically offer access to a wider range of choices up and down the application stack—including operating systems, middleware, databases and development tools—than most organizations can practically or affordably maintain themselves.
PaaS also lets you try or test new operating systems, languages and other tools without making substantial investments in them or the IT infrastructure required to run them.
With an on-premises platform, scaling is always expensive, often wasteful and sometimes inadequate. You must purchase more compute, storage and networking capacity in anticipation of traffic spikes. Much of that capacity sits idle during low-traffic periods, and none of it can be increased in time to accommodate unanticipated surges. With PaaS, you can purchase more capacity and use it immediately whenever you need it.
PaaS services provide a shared software development environment that allows development and operations teams access to all the tools they need, from any location with an internet connection.
PaaS reduces costs by enabling organizations to avoid capital equipment expenses associated with building and scaling an application platform. PaaS can also reduce or eliminate software licensing costs. And by handling patches, updates and other administrative tasks, PaaS can reduce your overall application management costs.
PaaS providers invest heavily in security technologies, including built-in tools like threat modeling and access control, which can help organizations enhance their overall security approach.
In general, PaaS solutions have three main components:
Because PaaS delivers all standard development tools through the GUI online interface, developers can log in from anywhere to collaborate on projects, test new applications or roll out completed products. Applications are designed and developed right in the PaaS using middleware. With streamlined workflows, multiple development and operations teams can work on the same project simultaneously.
PaaS providers manage the bulk of your cloud computing services, such as servers, runtime and virtualization. As a PaaS customer, your company maintains management of applications and data.
Platform as a service (PaaS), infrastructure as a service (IaaS) and software as a service (SaaS) are the three most common cloud computing service models. In fact, it's common for an organization to use all three—even if they don't purchase all three specifically.
Infrastructure as a service (IaaS) is internet access to "raw" IT infrastructure—physical servers, virtual machines, storage, networking and firewalls—hosted by a cloud provider. IaaS eliminates the cost and work of owning, managing and maintaining on-premises infrastructure. With IaaS, the organization provides its own application platform and applications.
Any PaaS offering necessarily includes the IaaS resources required to host it, even if those resources aren't discretely broken out or referred to as IaaS.
Software as a service (SaaS) is application software hosted on the cloud and used over an internet connection through a web browser, mobile app or thin client. SaaS enables your organization to use an application without the expense of setting up the infrastructure to run it and the effort and personnel to maintain it (for example, apply bug fixes and updates, address outages and more.) Salesforce and Slack are examples of popular SaaS offerings. Most web applications are considered SaaS.
Every SaaS offering includes the IaaS resources required to host it and, at minimum, the PaaS components needed to run it. Some SaaS vendors also provide a discrete PaaS that allows third parties to customize the SaaS offering.
PaaS, IaaS and SaaS are integral to today's multicloud environments—the use of cloud services from more than one cloud vendor. Multicloud gives organizations the flexibility to optimize performance, control cost and avoid vendor lock-in. In the enterprise, multicloud typically refers to running enterprise applications on PaaS or IaaS from multiple cloud service providers.
PaaS provides an integrated and ready-to-use platform and enables organizations to offload infrastructure management to the cloud provider. This allows development teams to focus on building, deploying and managing applications. PaaS can ease or advance several IT initiatives:
Many cloud, software and hardware vendors offer purpose-built PaaS solutions for building specific types of applications, or applications that interact with specific types of hardware, software or devices.
AIPaaS lets development teams build artificial intelligence (AI) applications without the often prohibitive expense of purchasing, managing and maintaining the significant computing power, storage capabilities and networking capacity these applications require. AIPaaS typically includes pretrained machine learning (ML) and deep learning models developers can use as-is or customize. It also includes ready-made APIs for integrating specific AI capabilities, such as speech recognition or speech-to-text conversion, into existing or new applications.
iPaaS is a cloud-hosted solution for integrating applications. iPaaS provides organizations with a standardized way to connect data, processes and services across different IT environments without purchasing, installing and managing their own backend integration hardware, middleware and software. (Note that PaaS solutions often include some degree of integration capability—API management, for example—but iPaaS is more comprehensive.)
cPaaS is a PaaS solution that lets developers easily add voice (inbound and outbound calls), video (including teleconferencing) and messaging (text and social media) capabilities to applications, without investing in specialized communications hardware and software.
mPaaS is a type of PaaS that simplifies application development and delivery for mobile devices. mPaaS typically provides low-code (even simple drag-and-drop) methods for accessing device-specific features, including the phone's camera, microphone, motion sensor and geolocation (or GPS) capabilities. This end-to-end solution helps streamline mobile app development into one integrated platform.
1 Public cloud platform as a service (PaaS) user spending worldwide from 2015 to 2024, Statista, Mar 27, 2024
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