By 2025, Gartner predicts that cloud-native platforms will serve as the foundation for more than 95% of new digital workloads, up from less than 30% in 2021.1
One of the greatest benefits of cloud computing is automation. Companies are eager to adopt the cloud to remove layers of management. You won’t be responsible for the physical data centers, operating systems, and hardware.
By removing these layers, your organization can cut costs and minimize the time spent on mundane IT tasks. Instead of maintaining hardware, you can focus on innovation and scale your applications on demand. More enterprises are turning to cloud to reinvent their applications and take advantage of new deployment strategies.
But cloud may mean something different to your enterprise compared to the enterprise down the street. Deploying the right model or hybrid model for your needs is key.
What are the three common cloud service models?
There is confusion about the three main categories of cloud service models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Let’s define each cloud service model.
1. Infrastructure as a Service (IaaS)
Infrastructure as a Service (IaaS) is a self-service model for managing remote data center infrastructures. IaaS provides virtualized computing resources over the Internet hosted by a third party such as Amazon Web Services, Microsoft Azure, or Google.
Instead of an organization purchasing hardware, companies purchase IaaS based on a consumption model. It is like buying electricity. You only pay for what you use. This model enables companies to add, delete or reconfigure IT infrastructure on-demand.
Many IT organizations rely on IaaS because they are more familiar with IaaS, especially if they have years of experience with virtual environments or strict security and regulatory requirements that can only be met through IaaS.
2. Platform as a Service (PaaS)
Platform as a Service (PaaS) allows organizations to build, run and manage applications without the IT infrastructure. This makes it easier and faster to develop, test and deploy applications.
Developers can focus on writing code and create applications without worrying about time-consuming IT infrastructure activities such as provisioning servers, storage, and backup.
PaaS brings more value to cloud. It can reduce your management overhead and lower your costs. PaaS also makes it easier for you to innovate and scale your services on demand.
3. Software as a Service (SaaS)
Software as a service (SaaS) replaces the traditional on-device software with software that is licensed on a subscription basis. It is centrally hosted in the cloud. A good example is Salesforce.com.
Most SaaS applications can be accessed directly from a web browser without any downloads or installations required. However, some SaaS applications require plugins.
Find the right model for the right business outcome
A successful move to cloud isn’t about IaaS vs. PaaS vs. SaaS. The trick for any organization is knowing which model to choose based on what it needs to accomplish. In many situations, it is likely to use all three models to cover various business needs and perhaps a few of the other service models listed below.
Other cloud service models you may want to consider:
- Network as a service (NaaS)
- Backup as a service (BaaS)
- Database as a service (DBaaS)
- Communications as a service (CAAS)
- Storage as a service (STaaS)
Working with a trusted solutions advisor can help you assess your organizations need and develop the right hybrid cloud solution. With a solid strategy, cloud foundation and governance plan, you can achieve more value from cloud.
The three main cloud computing service models are Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Each model has distinct characteristics that make it appropriate for addressing specific types of business objectives. Each cloud computing model offers cloud customers a varying degree of control and level of responsibility when configuring and securing a solution.
In this article, we’re going to take a close look at the differences between these three cloud computing models to help you to choose the right one to address your unique business objectives.
Cloud computing is the delivery of computing services over the Internet. The services can include physical or virtual servers, storage, networking, and databases. Cloud computing also provides more abstract services such as access to analytical engines and business intelligence platforms.
Cloud service providers (CSPs) have developed cloud computing service models that provide different types of IT resources and support. Each model addresses a different set of problems a business needs to solve to be competitive in today’s market.
Why You Should Think About Moving to The Cloud
The market for cloud computing services continues to grow. Estimates expect the market size to reach $1,614.1 billion by 2030. That’s 1.6 trillion dollars spent on cloud computing in a few years, representing a CAGR of over 17% from 2022 to 2030.
Businesses of all sizes and types are migrating some or all of their IT environment to the cloud to take advantage of the many benefits offered by CSPs. These benefits include:
- Reduced capital expenditures and cost savings by using the resources of cloud providers;
- Access to cutting-edge technology that would be difficult to implement in an on-premises data center;
- Virtually limitless scalability that allows a business to grow and optimize its use of cloud resources;
- Enhanced data availability as resources can be accessed from any Internet connection;
- Experienced technical personnel to help implement cloud solutions.
What Are the Three Cloud Computing Service Delivery Models?
Let’s look at what differentiates the three main cloud computing service models. We’ll start by defining them and then discuss the advantages and disadvantages of each of the three cloud service models.
Infrastructure as a Service (IaaS)
In the IaaS model, the cloud provider supplies the customer with a customized infrastructure on which they can run any operating system or application. It’s the most flexible of the three cloud computing service models as it gives the customer almost total control of the infrastructure.
Advantages of IaaS
The advantages of an IaaS solution include:
- Extensive flexibility and scalability;
- Cost savings when compared to upgrading in-house resources;
- Ease of deployment;
- Allows companies to supplement in-house resources for specific projects.
Disadvantages of IaaS
An IaaS offering may pose disadvantages to customers including:
- The need for technical staff to manage the infrastructure;
- Potential security risks by giving up control to the CSP;
- IaaS solutions may require substantial process changes;
- Vendor lock-in can make it difficult to migrate to a different cloud provider.
Platform as a Service (PaaS)
The PaaS model provides customers with a virtualized application development platform without the need for them to furnish hardware or system administration using in-house resources. All necessary infrastructure components and application development services are provided and managed by the CSP.
Advantages of PaaS
Some of the advantages of the PaaS model are:
- Cost savings;
- Reduced development time-to-market;
- Robust infrastructure security;
- Access to cutting-edge technology to future-proof an organization;
- Supports a remote workforce.
Disadvantages of PaaS
Possible disadvantages of PaaS include:
- Compatibility with existing development environments;
- Dependency on the CSP’s ability to perform.
Software as a Service (SaaS)
SaaS solutions offer customers direct, online access to applications without any of the challenges of maintaining them, their platform, or infrastructure. Customers are essentially end-users of the software delivered through the SaaS model.
Advantages of SaaS
Many advantages can be enjoyed with an SaaS offering including:
- Accessibility to applications at any time from an Internet connection;
- Reduced operational management;
- Cost-effective with models that charge customers based on usage;
- Easy scalability to address evolving business requirements;
- Availability of cloud-based analytics and business intelligence solutions.
Disadvantages of SaaS
Disadvantages of an SaaS solution include:
- Loss of customer control;
- Potential network latency;
- Limited customization options;
Choosing the Right Cloud Computing Model for Your Business
Each of the service models in cloud computing is designed to address a different set of business objectives or provide customers with innovative solutions to help them achieve their goals. An organization needs to choose the right model when opting for a cloud solution to effectively address its issues and obtain the maximum value from its investment.
When you should use IaaS
IaaS is a viable choice when a company needs additional computing power but does not want to upgrade its on-premises environment. Organizations often opt for an IaaS solution to upgrade their infrastructure quickly vs. buying hardware and scaling over the course of several months. IaaS infrastructure increases flexibility and scalability of infrastructure and also doesn’t require physical capacity like an on-premise model. In addition, leveraging IaaS allows you to gain access to cutting edge technologies as they are released.
When you should use PaaS
A PaaS solution is appropriate for companies that:
- Need to shorten development cycles to address business requirements;
- Require the ability to easily scale applications;
- Have complex development projects requiring collaboration between remote teams.
When you should use SaaS
SaaS solutions are the easiest of the three service models of cloud computing to implement as they are primarily supported by the SaaS vendor. A SaaS offering should be used when a company:
- Doesn’t have the resources to deploy an on-premises solution;
- Needs to support a mobile workforce;
- Requires a collaborative platform to further business objectives.
How Do You Secure Your Cloud Services?
Securing cloud resources is a responsibility shared by the CSP/vendor and the customer. Each party is responsible for the security of different aspects and components of a cloud offering. The degree of responsibility each party assumes is influenced by the choice of cloud computing service model used to implement a solution. Some vendors may implement a modified version of the shared responsibility matrix.
The following outline provides details on the security responsibility of a CSP and its customer.
Security for IaaS
Cloud provider:
- Services and storage;
- Network and virtualization layer;
- Physical security of the data center.
Customer:
- Operating systems;
- Software stack and applications;
- Data resources.
Security for PaaS
Cloud provider:
- Services and storage;
- Network and virtualization layer;
- Physical security of the data center
- Operating systems;
- Development tools.
Customer:
- Middleware;
- Code and data generated on the platform.
Security for SaaS
Cloud provider:
- The CSP assumes virtually all security functions for a SaaS solution.
Customer:
- Needs to secure login credentials to avoid unauthorized access to the software.
What to Expect From Cloud Computing in the Future
Cloud computing will continue to grow as more businesses take advantage of its benefits and CSPs develop innovative offerings to attract new customers. Familiarity with the three service models of cloud computing can help you align your business requirements with the appropriate infrastructure, platform, or software.
Businesses interested in these benefits and in optimizing their cloud investment should consider working with an experienced managed service provider (MSP) like Cloudticity. Cloudticity brings a wealth of experience in helping healthcare businesses identify and implement the right solution to address their needs. Partnering with Cloudticity is an excellent first step toward maximizing the value of cloud computing for your business.
To learn more about how you can make the most of your cloud investment, read the white paper Maximize Cloud Value for Health Tech. Or schedule a free consultation to learn how we can partner together for your cloud transformation.
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