"As of 2025, software as a service (SaaS) continues to dominate the cloud computing landscape, with the global SaaS market expected to generate approximately $390.5 billion in revenue this year. This number not only eclipses the platform-as-a-service ( PaaS) market, which is expected to reach $208.6 billion, and the infrastructure-as-a-service ( IaaS) segment, projected at $180 billion, but also reveals the central role SaaS has come to play in business operations worldwide."
"When people talk about "the cloud," they typically think about spinning up servers, storing files, or leveraging compute power-all classic IaaS. The reason for this starts with the cloud's origin story: infrastructure. The earliest and most transformational cloud narratives involved offloading expensive, difficult-to-maintain hardware and data centers to massive, shared platforms operated by Amazon, Microsoft, or Google. As a result, IaaS defined what it meant to move to the cloud."
SaaS is the dominant cloud segment in 2025, with about $390.5 billion in global revenue. PaaS is expected at $208.6 billion and IaaS at $180 billion. Top SaaS products include Salesforce, Adobe Creative Cloud, and Microsoft 365. IaaS leaders AWS, Microsoft Azure, and Google Cloud Platform hold over 63% of global infrastructure share. PaaS leaders include Salesforce Platform, AWS Elastic Beanstalk, and Azure App Service. IaaS dominates boardroom cloud conversations because the cloud's origin story centered on infrastructure, leading enterprises to focus on servers, storage, and compute rather than SaaS-driven strategic differentiation.
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