Platform as a Service Business Model (PaaS)

The birth of cloud computing is changing software development and distribution. Unlike before where customers had to buy licenses, they are now paying for usage and in terms of pay-per-use. The distribution of software is changing where users can access them through third-party platforms such as web browsers.

With this transformation, software companies are rethinking their business models. The focus is no longer on selling computing software to the customers. Rather they are bundling and offering it a service. Cloud computing is enabling this objective to thrive.

One of the new business models in the computing arena is the Platform as a Service or PaaS. In this article, we discuss what is PaaS model, how it works, and the benefits/shortfalls you can gain by adopting it in your business. So keep reading and get to know more about this model.

What is Platform as a Service?

Like SaaS, Platform as a Service is a cloud-based service. This service provides all development and deployment tools on the cloud. In other words, PaaS delivers a framework that developers can use to create applications and customize them for a given purpose.

Unlike SaaS, this service provides a platform for application and software development. As a developer, you can create and design applications that feature special software components known as middleware. The middleware range from simple to enterprise cloud-based applications.

The PaaS is accessible through any internet connection. Also, as they are on the cloud, developers can access it regardless of their location across the globe. This aspect can enhance collaboration in app development.

How Does Platform as a Service Work?

As mentioned, PaaS operates on the cloud. Businesses using the PaaS business model provide a cloud-based framework where developers can build apps and software. This framework has the required application backend components that include operating systems, web servers, databases, and storage. Also, the PaaS solution providers offer developers the required tools to enable them to create apps and software on the pre-developed backend.

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With these aspects, the developers can concentrate on building the user interface and front-end design. Most PaaS solutions come with a downloadable or web-based interface also, the developed app interface has the capability of sync external data through its integrations to provide additional features and functionality.

As a developer, you utilize these tools to create, design, and deliver the apps to the end-user. All these happen in the cloud sphere. Notably, most SaaS solution providers use the PaaS platforms to create their software.

Examples of PaaS Businesses

With cloud computing becoming the new norm, many business solutions are moving to offer PaaS-based solutions. The essence is to help businesses reduce their expenses and migrate to the cloud world. Some of the PaaS businesses are Microsoft Azure which allows developers to build software and apps.

Google Engine App is the next PaaS platform. This serverless platform allows developers to build and apps using popular programming languages or using their selected language and framework.

SalesForce is another PaaS example where you can build apps to enhance your business and customer services. AWS Elastic Beanstalk is also a PaaS platform for creating and scaling web-based applications. All these platforms enable your business to move and operate on the cloud.

Pros and Cons of the PaaS Business Model

PaaS platforms help your business to move to the virtual space and boost your scalability. However, it has benefits and limitations. Here are some of them:

Pros

Enhance the development pace

No doubt developing apps and software is a time-consuming task. The developers have to build databases and manage the backend requirement. These elements lengthen the time for completing and deploying prototypes.

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With PaaS, the development pace becomes shorter. The PaaS platform comes with a pre-developed back-end. This means that the developers only need to concentrate on the front-end features and design.

Also, these solutions offer environments for developing, staging, and testing the apps. This aspect allows faster elimination and fixation of the bugs. As such, it helps to shorten the development duration of the apps and software.

Easy to predict your revenue

Like SaaS, businesses and developers using PaaS solutions subscribe to a membership plan where they pay monthly or annual fees. Also, they pay-per-use like other utilities. This means that as the provider, you can determine with certainty the amount of revenue you will generate in a given period. With certain predictions, you can plan your business effectively and efficiently.

Boost scalability for the client business

One of the major challenges of any business is scaling. Each business wants to reach out to customers across the globe. But to achieve this, they must invest in building IT infrastructures to support their systems. This task can be costly and a challenge to many businesses.

Fortunately, the PaaS solutions come through to save these businesses. The solutions allow businesses to go to the cloud by providing resources that enable them to scale up or down. Also, it speeds up your customer migration to the cloud as well as correction of essential data for decision making. All these elements enhance your business’s scalability.

High demand

As many businesses seek to migrate to the cloud, the demand for PaaS solutions is scaling up. Any provide coming up with a PaaS platform is likely to generate huge profits. The aspect of helping businesses to manage their data and resources at minimum cost is a powerful tool. Hence, if you are a business solution provider, opting for PaaS can be a well-thought idea.

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Cons

Zero control

The PaaS provider has the power to control the platform. As a user, you will be prone to downtime in case the system has some issues. This issue can affect your service provision or app development. So, you need to assess each PaaS platform before subscribing to their services.

Challenges to change providers

Your apps run on the vendors’ platform. In case the vendor has some issues and you need to move to a new one, it will affect your functionalities. Moving to a new provider can be costly as you will need to migrate every app aspect.

Conclusion

In a word, the PaaS model is a good idea for any business solution provider. The model allows the business to migrate to the cloud at a lower cost. Also, it powers and simplifies the developers’ work. However, the lack of control and issues in changing a provider are major challenges that PaaS providers need to tackle to attract clients.

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