IaaS, PaaS and SaaS: How the Cloud Service Models Differ

Technology has come a long way in the last ten years. Today, we are experiencing a significant decline in demand for traditional IT. Instead of buying and maintaining IT resources in on-site data centers, companies are now leveraging the benefits of cloud computing. Here, third parties own and manage the IT resources, while companies pay for access to these resources over the internet. There are three common types of cloud computing services: IaaS, PaaS, and SaaS. In this article, we show you what these three terms stand for and how they differ from each other.

Definition: IaaS

Infrastructure-as-a-Service (IaaS) is a cloud computing service where companies rent computing resources such as servers and storage space in the cloud. These resources are offered as an individual service and can be scaled up or down according to the company's needs. This significantly reduces the need for physical servers and on-site data centers. The companies are also flexible enough to quickly and cost-effectively handle variable business requirements.

Definition: PaaS

Platform-as-a-Service (PaaS), also known as cloud platform services, provides developers with an infrastructure for software development. This platform is provided over the Internet, allowing developers to focus on creating the software. All servers, storage, and networks are then managed by the company or a third party.

Definition: SaaS

Software-as-a-Service, also known as cloud application services, is the most commonly used option for businesses in the cloud market. This model uses the Internet to provide users with applications, usually for a monthly subscription fee. This eliminates the need for downloads and application installations. The providers also take care of all potential technical aspects such as data, middleware, servers, and storage.

IaaS, PaaS, and SaaS: The Differences

Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) are three delivery models for cloud computing. Let's take a look at the basic differences:

In which situations is which service model suitable?

Not sure which cloud computing service to use? Below are use cases for each service model:

IaaS

With IaaS, you can optimize the operations of a company, whether it's a small, large, or still growing company. For startup or small business owners, IaaS can save a lot of resources. After all, they do not have to buy or manufacture new hardware and software. Larger companies, on the other hand, can use IaaS to maintain control over their infrastructure. They do not have to buy programs that they will not use. Rapidly growing companies can also benefit from the adaptability of IaaS. The service model can be operated with different hardware or software depending on the needs of a company.

PaaS

PaaS is ideal for developers working with other developers on a single project. This platform allows you to work efficiently and create custom applications. This saves you money and time in developing or introducing new apps. PaaS also uses web services and databases to store information. This is ideal if you want to create new programs or organize large amounts of data.

SaaS

SaaS is a good option for you if you work in a start-up or small business and want to offer your customers an e-commerce option. SaaS does not require dedicated servers for accessing applications. Therefore, you can quickly set up SaaS products and make them available to users. You can also use them for short-term projects or for software that you might only need occasionally (e.g. tax software). Furthermore, you can create and share all applications with the cloud computing service that require internet and mobile access.

IaaS, PaaS, and SaaS: The best-known providers in the market

Below is a list of known service providers for all cloud computing services:

IaaS Providers: 

• Amazon Web Services (AWS)
• DigitalOcean
• Google Compute Engine
• Azure Virtual Machines
• IONOS Hosting & Cloud

PaaS Providers: 

• AWS Elastic Beanstalk
• Google App Engine
• IBM Cloud
• Azure App Service 
• Red Hat OpenShift

SaaS Providers:

• Adobe (e.g. Adobe Workfront, Adobe Campaign, Adobe Analytics)
• Google (e.g. Google Forms, Google Pay, Google Analytics)
• Microsoft (e.g. Microsoft Teams, Microsoft Project, Microsoft SharePoint)
• Zoho (e.g. Zoho Social,Zoho Recruit)
• Zoom
• Trello

What are the pros and cons of IaaS, PaaS, and SaaS?

IaaS Advantages

• The resources can be provided by the provider at any time in the customer's environment.
• You can scale the system according to your business requirements.
• The provider has various options for providing resources such as virtual machines, applications, storage, and networks.
• IaaS can manage a tremendous number of users.
• The model is easy to expand and saves a lot of resources long term.

IaaS Disadvantages

• Before a complete migration to the cloud, all older technologies or applications must be checked for compatibility. There are many older systems that are not designed for cloud-based services. They may therefore need to be upgraded or replaced.
• Switching from on-premise to the cloud can introduce new security threats, whether from the host or from other virtual machines (VMs).
• With a new system comes a lack of familiarity with its functions. You should therefore prepare additional training and resources to familiarize your staff with the system.
  

PaaS Advantages

• As programmers, you don't have to worry about which specific database or language the application was programmed in.
• As developers, you can create applications without the overhead of the underlying operating system or infrastructure.

Paas Disadvantages

• With PaaS, you might face challenges when integrating new applications. This is related to problems associated with legacy systems. These systems often aren't designed for the cloud.

• Using third-party servers for your data could lead to additional security risks. Also, the security options can be limited. That's because you have to find a solution that integrates with third-party systems.
• PaaS solutions may not be fully optimized for your company's language and frameworks. Therefore, it can be difficult to find a tailor-made solution.
• Customized cloud operations may not be compatible with PaaS solutions. This is especially true for solutions with automated management workflows, which can limit your operational capabilities. 

SaaS Advantages

• It offers a wide range of hosted features and services. These can be used to create and deploy web-based software applications.
• The service model is cheaper than on-premise software. The reason for this is that no hardware or licenses need to be purchased or installed.
• Access can simply be done through a browser.

SaaS Disadvantages

• Since the data is mainly on external servers, security could become an issue.
• Integrating with existing applications and services can be a hurdle. Many SaaS applications are not designed for open integrations.
• SaaS services generally only allow a minimum customization of features and integrations. This can force companies to invest substantial resources in managing or adding customizations.
• With a SaaS solution, companies often have to give ultimate control to the third-party providers and hand them the keys to functionality, performance, and even data.

What costs can be expected when using IaaS, PaaS, and SaaS?

Depending on which service model you choose, the price can vary greatly.

Pricing Models for IaaS Services

With IaaS, pricing typically follows one of these models:

Subscriptions: Some providers offer discounts for customers who commit to longer contract terms. The pricing for subscription-based services can be cheaper, but also ties you to a provider for a specific period. This can be a disadvantage if your requirements change or you are not satisfied with the provider.

Pay-as-you-go: Traditional IaaS providers typically bill their services hourly/seconds. Also, only what users consume is billed to them. This is beneficial because you can easily switch cloud providers as needed. However, your bill can rise and fall depending on usage, which can lead to unexpected expenses.

Pricing Models for PaaS Services

With PaaS, the price can depend on several variables: 

• Multidimensional usage
• Bandwidth, backups, and regions
• Special licensing may be required

For this reason, a simple PaaS service can cost anywhere from a few euros to several thousand euros per month depending on your company's requirements. Many providers offer the service at a low price and then scale the size and price of the platform according to your actual usage. 

Pricing Models for SaaS Products

With SaaS, there are a variety of pricing models: 

• Flat price: A product or a set of features are offered at a fixed price.
• Usage-based pricing (Pay-As-You-Go model): The cost of a SaaS product is determined by usage.
• Tiered pricing model: The price changes depending on the combination of features offered. 
• Pricing per user: A user pays a fixed monthly price.
• Freemium pricing model: A company offers a free product that is complemented by additional fee-based packages.

Conclusion: IaaS vs. PaaS vs. SaaS

Let's conclude by taking another look at the main differences between the three service models:

• IaaS gives you the most flexibility when it comes to hosting custom applications. Also, a general data center is available for data storage.
• PaaS is usually built on an IaaS platform to reduce the need for system administration. This allows you to focus on application development, rather than infrastructure management.
• SaaS, on the other hand, offers ready-to-use solutions that meet a specific business need (e.g., a website or email). Most modern SaaS platforms are based on IaaS or PaaS platforms.

The increasing popularity of these cloud computing services has reduced the need for on-premise hosting. They enable users to migrate to the cloud, provide them flexibility, and offer scaling options depending on business requirements. All of this is crucial for companies wanting to survive in this constantly evolving landscape. If you want to learn more about cloud computing, you should check out OMR-Reviews now.