CONFERENCE CALL REPLAY | PaaS Wars; Demystifying the PaaS Market and Related Investment Opportunities

    April 17, 2018  8:00 AM PDT / 11:00 AM EDT

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    Conference call materials

    We believe that a fundamental change in the way applications are being built, delivered and managed is creating one of the bigger software opportunities we have seen in our 20+ years in the business, while representing a real risk to legacy vendors that make up roughly $122B of software and services spend that can potentially be disrupted by PaaS and hybrid models.  Simply, PaaS automates the infrastructure for building, delivering and managing applications in the cloud, while hybrid delivery leverages this technology to complement and enhance on premise software.

    Over the next 4 years, we expect cloud based workloads to grow 20-25%, driven by a) more propriety apps (which are over 50% of all apps) moving to the cloud and b) extensions of SaaS apps both of which will cause the PaaS layer to become one of the most important and fastest growing segments in the entire tech stack. In our universe, Red Hat and Salesforce are the best positioned from PaaS and hybrid adoption, have the most financial upside from these shifts and remain two of our top picks, while Microsoft is also well positioned to benefit.

    In this report and on this call we detail:

    -   How and why application development has changed (complete with a detailed technical overview) 

    -   How the platform as a service market is becoming one of the most important layers in the technology stack, set to disrupt $122B of revenue comprised of legacy middleware tools, on premise discrete software tools, database and analytics, and custom app development services

    -   The realistic opportunity for PaaS providers and how we are just beginning to climb the steepest part of the S-Curve Adoption Cycle with PaaS adoption just over 25% going to 41% over the next three years

    -   The major players in the market and a detailed comparison of how the technology stacks and go to market capabilities differ

    -   How different platforms are leveraged for specific use cases

    -   The winners and losers in the shift in application development

    -   The fundamental impact to stocks under coverage and the major public cloud providers