What the heck is "the cloud"? And how do IaaS, PasS, and SaaS relate to the cloud?
These seem like simple questions, but they have a big impact on your business and the technologies you use to operate.
In this post, we’ll give you the answers you need and cover:
- IaaS vs. PaaS vs. SaaS: What's the Difference?
- IaaS Definition
- PaaS Definition
- SaaS Definition
- IaaS vs. PaaS
- PaaS vs. SaaS
IaaS vs. PaaS vs. SaaS: What's the Difference?
The cloud refers to how and where data is stored — perhaps more importantly, where it isn’t. The cloud allows software and services to run on the internet instead of only locally on one device because the data is stored remotely across various servers.
IaaS, PaaS, and SaaS are the three main categories of cloud computing. Cloud computing is using a network of different servers that host, store, manage, and process data online — in "the cloud," as I mentioned earlier.
Let’s go over a quick definition for each of these services.
- IaaS (Infrastructure as a Service): IaaS products allow organizations to manage their business resources — such as their network, servers, and data storage — on the cloud.
- PaaS (Platform as a Service): PaaS products allow businesses and developers to host, build, and deploy consumer-facing apps.
- SaaS (Software as a Service): By far the most common cloud service, SaaS products offer both consumers and businesses cloud-based tools and applications for everyday use.
You can access all three via internet browser or online apps available on different devices. A great example is Google Docs, which allows your team to collaborate online instead of needing to work on one Microsoft Word document and send it around to each other.
Compare these to on-premise software, which is installed locally on a server or device at an organization’s physical location.
On-Premises Software
On-premises services are deployed, hosted, and maintained on hardware at an organization’s building or campus.While you can access cloud-based software via the internet, on-premises software requires you to buy a license so you can install it on the organization’s hardware. For cloud-based services, you’d typically pay a subscription instead.
Since most software and platform providers now run on a cloud-computing model, it’s challenging to find active examples of on-premises software. One example would be Adobe Photoshop Elements because, while you can still install it via the cloud, you can buy a license in CD-ROM format and install it locally.
Now that you have an overview of the different cloud services, we'll break it down a little further.
IaaS (Infrastructure as a Service)
IaaS, or infrastructure as a service, is a cloud-based service that allows resources to be delivered to organizations virtually (or through the cloud). IaaS tools help organizations build and manage servers, networks, operating systems, and data storage without needing to buy hardware.
IaaS customers can control their data infrastructure without physically managing it on-site. Instead, they store data on the servers of IaaS providers, and use a dashboard or API (application programming interface) to access and manage their resources.
What does IaaS do?
IaaS helps companies build and manage data as they grow, paying for storage and server space as needed without hosting and managing servers on-site. IaaS products do make up the foundations of building new technologies delivered over the cloud.
IaaS providers manage their customers’ data on physical servers across the world.
IaaS Delivery
IaaS products deliver storage systems, networks, and servers virtually to enterprise businesses. Organizations can access and manage their data through a dashboard and connect it to the IaaS provider’s API.
IaaS Pros
IaaS cloud infrastructure offers companies and administrators the greatest level of control and power over software and hardware. Other benefits include:
- Its pay-as-you-go model allows businesses to only pay for the resources they use.
- Organizations have complete control over their infrastructure.
- It can be scaled or downsized as needed.
- There’s no need to buy a physical server or maintain it.
IaaS Cons
The principal drawback of an IaaS tool is that you're still responsible for being “technologically” secure. In addition:
- You have to make sure that your apps and operating systems are working properly and providing the utmost security.
- You’re in charge of the data — if any of it is lost, it’s up to you to recover it.
- Because it provides the greatest amount of control, IaaS tools are also the most hands-on. IaaS firms only provide the servers and its API, and everything else must be configured on your end.
IaaS Examples
- Amazon Web Services (AWS): AWS is overseen by Amazon and is used for on-demand cloud computing and purchased on a recurring subscription basis. AWS helps companies store data and deliver content — in fact, it's helping you read this blog post right now.
- Microsoft Azure: Microsoft Azure is a cloud-computing IaaS product that allows for building, testing, and managing applications through a network of Microsoft data centers.
- Google Cloud: Google Cloud is an IaaS platform that businesses can use to natively run Windows, Oracle, and SAP. Additionally, a business can manage its enterprise database and use AI solutions to increase operational efficiency within the firm.
- IBM Cloud: IBM Cloud is another IaaS product that allows businesses to “allocate your computer, network, storage and security resources on demand.” In other words, businesses only use resources when needed, increasing efficiency.
PaaS (Platform as a Service)
A PaaS, or platform as a service, provides developers with a framework they can use to build custom applications. PaaS doesn’t deliver software over the internet, but rather a platform that developers can use to create online software and apps.
What does PaaS do?
PaaS products let developers build custom applications online without having to deal with data serving, storage, and management.
You can think of PaaS as a scaled-down version of IaaS. It still provides customers with servers and data centers to store their information (in this instance, an app), but its customer is a developer creating an app that will then be delivered over the internet to consumers. SaaS applications are developed on PaaS platforms.
PaaS Delivery
PaaS provides a secure platform for developers can create software and apps for consumer use. Developers access PaaS tools over the web. For instance, the Heroku dashboard, prompted me to create an app.
PaaS Pros
Developers use PaaS because it’s cost-effective and allows for easy collaboration for an entire team. Consider building an app on your local drive, then trying to deploy it online — that’s difficult or might take too many steps.
With a PaaS, developers build their app right on the platform, then deploy it immediately.
In addition:
- PaaS tools are very easy to use and sign-up for.
- Developers can collaborate with other developers on a single app.
- Developers can easily customize and update apps without thinking about software upkeep on the backend. Just code and go.
- If the app grows in adoption and usage, PaaS platforms offer great flexibility and scalability.
PaaS Cons
The most significant disadvantage of PaaS is that you can only control what’s built on the platform. If there’s an outage or issue with the hardware or operating system, the software will go out with it.
Other drawbacks include:
- You only have control over the code of the app and not the infrastructure behind it. Only small to medium-sized firms should use it.
- The PaaS organization stores your data, which can pose a security risk to your app’s users.
- The PaaS terms of service can limit the customizations you can make.
PaaS Examples
- Google App Engine: Google App Engine allows developers to build and host web applications in cloud-based data centers that Google manages.
- Red Hat OpenShift: Red Hat OpenShift is an on-premises containerization PaaS software.
- Heroku: Developers can use this PaaS tool to build, manage, and grow consumer-facing apps.
- Apprenda: Apprenda is a PaaS product that allows developers and businesses to host an entire application portfolio. Build and deploy applications of all types on this platform.
Next up, let's dive into SaaS — the acronym you're likely most familiar with.
SaaS (Software as a Service)
SaaS, or software as a service, refers to cloud-based software that is hosted online by a company, is available for purchase on a subscription basis, and is delivered to buyers via the internet.
What does SaaS do?
SaaS products are among the most popular cloud computing services used by companies to build and grow businesses. SaaS is highly scalable and easy to use and manage because it doesn’t always require download and installation on individual devices for entire company use. This is particularly helpful for global teams that don't work in close proximity.
SaaS Delivery
SaaS companies delive- products over the web to end users. These tools can either be used as a web app (such as Google Docs) or downloaded and installed on the device (such as Adobe Creative Cloud). With a SaaS app, there’s no need for a specialist to come in and manually install it on each laptop using a purchased license.
SaaS Pros
The biggest advantage of using SaaS products is how easy they are to set up and start using. Because SaaS products are cloud-based, all you need to do to start accessing applications is to simply log in.
Additional benefits include:
- You don’t have to manage or upgrade the software. This is typically included in a SaaS subscription or purchase.
- It won’t use any of your local resources, such as space on your physical server (if you have one).
- It’s extremely easy to find and purchase a SaaS product.
- Your IT team won’t have to worry about the upkeep of a SaaS product.
SaaS Cons
SaaS tools’ ease of use lends itself to a significant disadvantage: When you use a SaaS product, you have no control over the cloud-based infrastructure it runs on. So, if the software provider experiences an outage, so do you. This can lead to widespread website outages and issues that can impact your SaaS-dependent business processes.
Some more drawbacks include:
- SaaS tools may be incompatible with other tools and hardware already in use at your business.
- Integrations are typically up to the provider, so it’s impossible to “patch” an integration on your end.
- You’re at the mercy of the SaaS company's security measures — if a leak happens, all of your data may be exposed.
SaaS Examples
- HubSpot: HubSpot is a CRM, marketing, sales, and service SaaS platform that businesses use to connect with and retain customers.
- JIRA: JIRA is a project management software that's delivered by Atlassian and can be purchased on a subscription basis by customers.
- Dropbox: Dropbox is a file-sharing SaaS tool that allows multiple users within a group or organization to upload and download different files.
- DocuSign: DocuSign is a SaaS product that businesses use to send contracts and other documents that require signatures.
What's the Difference?
IaaS, PaaS, and SaaS are all under the umbrella of cloud computing (building, creating, and storing data over the cloud). To understand the difference between them, think about them in the order we’ve presented them.
Every type of cloud-computing is different and has pros and cons that vary from the rest. Understanding the structure of each one will help you determine the right approach for your business.
Let's begin by comparing IaaS to PaaS.
IaaS vs. PaaS
The most distinct difference between IaaS and PaaS is that IaaS offers administrators more direct control over operating systems, and PaaS offers users greater flexibility and ease of operation.
IaaS builds the infrastructure of cloud-based technology. PaaS helps developers build custom apps via an API that can be delivered over the cloud. And, SaaS is cloud-based software companies can sell and use.
Let's say I wanted to start a website. An IaaS product, like Amazon Web Services, would help me host it and its applications. If I wanted to create further custom features, I’d use a PaaS product like Google App Engine to design it and install it on my site.
SaaS vs. PaaS
SaaS products are fully managed by another company, from applications to data servers, where PaaS products can be used as the foundation for building new products on top of the platform’s network.
For example, if I wanted to create an app for my business, I would use a PaaS product, and it would act as the platform for my app to run on. Once it’s finished, it would be considered SaaS because it would now provide a service to its users.
With both products, there's a risk of external management data that can compromise the function and security of the tools you’re using. SaaS is best for companies looking for out-of-the-box ease of use, and PaaS is best for companies looking to build a solution on an existing network.
Using Cloud-Based Software Increases Productivity and Efficiency
Cloud-based software servers are convenient and easy to use for most businesses, allowing them to virtually manage their organization’s technical infrastructure, create apps, and access a wide array of tools without needing to buy and maintain a physical server. These services can boost productivity and efficiency at your company — and help you grow better as a result.
Editor's note: This post was originally published in May 2018 and has been updated for comprehensiveness.
FAQs
In a SaaS solution, the service provider manages everything, and you can change some configurations once you sign-up. With IaaS, you have full control because you rent (not own) the infrastructure. With PaaS solutions, you control the application and data while the service provider manages the rest of the stack.
Which is better IaaS PaaS or SaaS? ›
For companies that need out-of-the-box services like CRM (even CRM for Gmail), email, collab tools, then it's best to choose SaaS. If you need a platform for building software products, then you should go with PaaS. If you need a virtual machine, go for IaaS.
What is the difference between IaaS vs PaaS vs SaaS? ›
IAAS gives access to the resources like virtual machines and virtual storage. PAAS gives access to run time environment to deployment and development tools for application. SAAS gives access to the end user. It is a service model that provides virtualized computing resources over the internet.
What is the difference between PaaS vs SaaS? ›
PaaS solutions provide a complete tech stack with hardware and software to assist with development, testing, and deployment of apps. SaaS offers minimal customization capabilities. Users will be limited to the specific functionality that is provided by the vendor.
What is IaaS PaaS and SaaS with example? ›
Unlike the IaaS model, PaaS providers manage runtime, middleware, and operating systems.
...
Common examples of PaaS, SaaS, and IaaS.
| Platform | Examples |
|---|
| SaaS | Gmail, Slack, and Microsoft Office 365 |
| IaaS | Amazon Web Services, Microsoft Azure, and Google Compute Engine |
1 more row10 Feb 2021
Software as a service (SaaS) allows users to connect to and use cloud-based apps over the Internet. Common examples are email, calendaring and office tools (such as Microsoft Office 365).
Is Gmail SaaS or PaaS? ›
Gmail is one famous example of an SaaS mail provider. PaaS: Platform as a Service The most complex of the three, cloud platform services or “Platform as a Service” (PaaS) deliver computational resources through a platform.
Why is IaaS better than PaaS? ›
PaaS. The most distinct difference between IaaS and PaaS is that IaaS offers administrators more direct control over operating systems, and PaaS offers users greater flexibility and ease of operation. IaaS builds the infrastructure of cloud-based technology.
What type of cloud is SaaS? ›
SaaS. SaaS is a service that delivers a software application—which the cloud service provider manages—to its users. Typically, SaaS apps are web applications or mobile apps that users can access via a web browser.
What are the 3 main service models of cloud computing? ›
There are three major cloud service models: software as a service (SaaS), infrastructure as a service (IaaS) and platform as a service (PaaS).
Infrastructure as a service (IaaS) is a type of cloud computing service that offers essential compute, storage and networking resources on demand, on a pay-as-you-go basis. IaaS is one of the four types of cloud services, along with software as a service (SaaS), platform as a service (PaaS) and serverless.
What is PaaS in simple words? ›
Platform as a service. Platform as a service (PaaS) is a complete development and deployment environment in the cloud, with resources that enable you to deliver everything from simple cloud-based apps to sophisticated, cloud-enabled enterprise applications.
What is the SaaS lifecycle? ›
SaaS (software as a service) Lifecycle Management refers to the methods used to manage and maintain a SaaS offering, from the prototype stage to the retirement stage, where the SaaS offering is no longer in service.
Is Netflix a SaaS company? ›
Netflix. Netflix is one of the most popular SaaS companies. One of the reasons they're so successful in such a competitive field is their low churn rate. The customer churn rate is the percentage of customers that cancel or stop using a service.
What's the difference between SaaS and cloud? ›
That's primarily the difference: SaaS offerings are applications that are fully formed end-user applications. Cloud Computing is computing infrastructure and services that you can rent. If you are in business, you will want to focus more on SaaS than cloud computing, unless your company develops software for a living.
Is Facebook SaaS or PaaS? ›
Facebook is an example of PaaS. Developers can create specific applications for the Facebook platform using proprietary APIs and make that application available to any Facebook user.
What is PaaS used for? ›
Platform as a service (PaaS) is a complete development and deployment environment in the cloud, with resources that enable you to deliver everything from simple cloud-based apps to sophisticated, cloud-enabled enterprise applications.
What is the most basic cloud service model? ›
There are three main cloud service delivery models: Software as a Service (SaaS) Infrastructure as a Service (IaaS) Platform as a Service (PaaS)
Is Zoom a SaaS? ›
Zoom is a video communications company that affords its users video conferencing remotely using cloud-based computing. It is a Software as a Service (SaaS) that provides you with an easy and stress-free platform to hold online meetings, mobile collaboration as well as video conferencing.
Is WhatsApp a SaaS? ›
Messaging applications like WhatsApp, Facebook messenger etc are SaaS? And how? No. “SaaS” has, like “Cloud”, become a term that no longer really reflects its current meaning.
Amazon Web Services (AWS) AWS (Amazon Web Services) is a comprehensive, evolving cloud computing platform provided by Amazon that includes a mixture of infrastructure as a service (IaaS), platform as a service (PaaS) and packaged software as a service (SaaS) offerings.
Is email an example of SaaS? ›
A simple example of SaaS is an online email service, like Gmail.
Is Gmail a cloud base? ›
Google Cloud is a suite of cloud computing services that runs on the same infrastructure that Google uses internally for their own consumer products, such as Google Search, Gmail, and YouTube. The list of available Google Cloud services is long—and it keeps growing.
What is a SaaS model? ›
Software as a service (SaaS) is a software distribution model in which a cloud provider hosts applications and makes them available to end users over the internet. In this model, an independent software vendor (ISV) may contract a third-party cloud provider to host the application.
How do you choose IaaS or PaaS? ›
The choice between IaaS vs. PaaS comes down to your internal resources and institutional knowledge, and maybe a little bit of what your regulatory environment looks like. Companies that need to invest their time in their development but don't have a lot of ops resources should consider PaaS.
Which is cheaper IaaS or PaaS? ›
PaaS is very easy to maintain and less expensive than IaaS but not as scalable.
Why IaaS is the best? ›
Companies use IaaS for a wide variety of reasons, most commonly including convenience, ease of accessibility, flexible scaling, and reduced operational expenditure (OpEx) costs.
What are the 4 types of cloud storage? ›
There are three types of cloud data storage: object storage, file storage, and block storage. Each offers their own advantages and have their own use cases: Object Storage - Applications developed in the cloud often take advantage of object storage's vast scalablity and metadata characteristics.
What are the 2 basic components of SaaS? ›
The essential SaaS components are: CRM system. Marketing automation.
How many types of SaaS are there? ›
Types of SaaS – What is Horizontal and Vertical SaaS? There are two different types of Software as a Service models, horizontal SaaS and vertical SaaS. A horizontal SaaS is a structure well used by established cloud services such as Salesforce, Microsoft, Slack, Hubspot etc.
APIs tend to also offer metered billing upfront. For these and other reasons, APIs are a distinct subset of SaaS. For fast-moving developers building on a global-scale, APIs are no longer a stop-gap to the future—they're a critical part of their strategy.
Which service model is best in cloud computing? ›
IaaS being the most flexible of cloud models gives the best option when it comes to IT hardware infrastructure. IaaS is the right option if you need control over the hardware infrastructure such as managing and customizing according to your requirements.
What are the three service models? ›
Cloud computing is offered in three different service models which each satisfy a unique set of business requirements. These three models are known as Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
Which three features are part of IaaS? ›
Storage, backup, and recovery.
Is Microsoft Office 365 an example of SaaS? ›
Software as a service (SaaS) allows users to connect to and use cloud-based apps over the Internet. Common examples are email, calendaring, and office tools (such as Microsoft Office 365).
What are the components of IaaS? ›
IaaS is broken into three main components: compute, network, and storage. With these offerings, users have the building blocks they need to create their customized systems, as complicated or powerful as they need, and the ability to scale up and down based on current needs.
Is Netflix a PaaS? ›
Yes, Netflix is a SaaS company that sells software to observe permitted videos on demand.
What is a PaaS model? ›
PaaS, or Platform-as-a-Service, is a cloud computing model that provides customers a complete cloud platform—hardware, software, and infrastructure—for developing, running, and managing applications without the cost, complexity, and inflexibility that often comes with building and maintaining that platform on-premises.
What does a user manage in IaaS? ›
In the IaaS model, users handle the applications, data, operating system, middleware, and runtimes. The IaaS vendor provides the virtualization, storage, network, and servers.
What is SaaS deployment? ›
The term “SaaS deployment model” refers to the installation and delivery of software as a service, as opposed to the traditional on premise model of software deployment.
Development and Launch of the Cloud Development Lifecycle (CDLC) The cloud development lifecycle can be classified into six major stages: data gathering, development, launch, continuing operations, optimization, and improvement.
What is the difference between SaaS and PAAS in terms of SDLC software development lifecycle processes? ›
1. PAAS is the hardware and software tools available on the internet, whereas SAAS is the software available on the internet via a third-party provider. 2. Applications and Data are managed by users in PAAS, while in SAAS, all the requirements are managed by a third party.
Does Netflix have 100% cloud? ›
Netflix Marches Forward on 100% Cloud Data Center.
Is Spotify a SaaS? ›
Software as a Service (SaaS)
Netflix, Spotify, Dropbox and Slack are common SaaS products, in which the product is then delivered to users over the internet on a subscription basis, giving users the flexibility to not have to worry about upfront installation purchases or ongoing maintenance costs.
Is LinkedIn a SaaS company? ›
Second to Salesforce, LinkedIn is the second largest SaaS company in the world. Unlike most SaaS companies which are B2B, LinkedIn is a B2C2B company. LinkedIn attracts hundreds of millions of consumers to post resumes online and sells this data and access to its audience to advertisers and recruiters and salespeople.
Is SaaS public or private cloud? ›
Public clouds include SaaS, PaaS, and IaaS services. Like all cloud services, a public cloud service runs on remote servers that a provider manages. Customers of that provider access those services over the Internet.
Is SaaS always on cloud? ›
Essentially, SaaS is a subset of cloud computing. However, it is important to note that not all SaaS models are built-in the cloud. SaaS products or applications can be built on a local terminal and deployed to a cloud-based server. The product itself is accessed and utilized through a web browser.
Does SaaS require a cloud? ›
Software-as-a-Service, or SaaS for short, is a cloud-based method of providing software to users. SaaS users subscribe to an application rather than purchasing it once and installing it. Users can log into and use a SaaS application from any compatible device over the Internet.
Is Azure functions IaaS or PaaS? ›
Azure App Service and Azure Container Apps are PaaS services. Functions-as-a-Service (FaaS) goes even further in removing the need to worry about the hosting environment. In a FaaS model, you deploy your code and the service automatically runs it.
Does Azure provide IaaS PaaS SaaS? ›
Azure PaaS (like Azure IaaS) is built on top of Azure SaaS, stopping just short of the application and data side. This means that an organization that selects Azure PaaS is still responsible for managing its applications and data, e.g., deciding when to scale them up to meet future demand.
Azure AD is also used for managing external SaaS (Software as a Service) programs and other resources. In contrast to on-premises Active Directory, Azure AD falls under the category of platform as a Service (PaaS) and is managed entirely by Microsoft.
Is Azure files PaaS or IaaS? ›
Azure Files is a PaaS (platform-as-a-service) offering provided by Microsoft Azure that is built on top of Azure Storage. It provides fully managed file shares over a protocol you know and love, SMB (Server Message Block).
What is SaaS in Azure? ›
Software as a service (SaaS) allows users to connect to and use cloud-based apps over the Internet. Common examples are email, calendaring, and office tools (such as Microsoft Office 365). SaaS provides a complete software solution that you purchase on a pay-as-you-go basis from a cloud service provider.
Are virtual machines IaaS or PaaS? ›
VM's are IAAS (Infrastructure as a service) because on a VM you can manage what operation system runs and what software is installed.
What are PaaS in Azure? ›
Platform as a service (PaaS) is a complete development and deployment environment in the cloud, with resources that enable you to deliver everything from simple cloud-based apps to sophisticated, cloud-enabled enterprise applications.
What is PaaS with example? ›
PaaS (Platform as a Service), as the name suggests, provides you computing platforms which typically includes operating system, programming language execution environment, database, web server etc. Examples: AWS Elastic Beanstalk, Windows Azure, Heroku, Force.com, Google App Engine, Apache Stratos.
Is Zoom SaaS or PaaS? ›
Zoom is a video communications company that affords its users video conferencing remotely using cloud-based computing. It is a Software as a Service (SaaS) that provides you with an easy and stress-free platform to hold online meetings, mobile collaboration as well as video conferencing.
What is SaaS stand for? ›
What is SaaS? Software as a service (or SaaS) is a way of delivering applications over the Internet—as a service. Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management.
Is SaaS Active Directory? ›
Active Directory doesn't support SaaS apps natively and requires a federation system, such as AD FS. SaaS apps supporting OAuth2, SAML, and WS-* authentication can be integrated to use Azure AD for authentication. Organizations can use AD FS with Active Directory to support LOB apps requiring modern authentication.
Is Microsoft a SaaS team? ›
With a transactable Software-as-a-Service (SaaS) offer, you can monetize your Teams app by selling subscription plans directly from your Teams store listing. For example, say you have a free app anyone can get in the store. Now you can offer premium and enterprise plans for users who want more features.
Azure AD B2C is a separate service from Azure Active Directory (Azure AD). It is built on the same technology as Azure AD but for a different purpose. It allows businesses to build customer-facing applications, allowing anyone to sign up for those applications with no restrictions on the user account.
Is storage account IaaS or PaaS? ›
Azure storage is a IASS product.
Is Azure SQL Database IaaS or PaaS? ›
Azure SQL Database is a fully managed platform as a service (PaaS) database engine that handles most of the database management functions such as upgrading, patching, backups, and monitoring without user involvement.
Which resource is an example of Laas? ›
Amazon Web Services (AWS) and Google Cloud Platform (GCP) are examples of independent IaaS providers. A business might also opt to deploy a private cloud, becoming its own provider of infrastructure services.
Compare these to on-premise software, which is installed locally on a server or device at an organization’s physical location.
Every type of cloud-computing is different and has pros and cons that vary from the rest. Understanding the structure of each one will help you determine the right approach for your business.