Cloud Service Models

What is Infrastructure as a Service (IaaS)?

Updated on: October 27, 2026

Author: Ioana Grigorescu, Content Manager

Reviewed by: Meir Amzallag, CEO & Co-Founder

Learn how IaaS gives you control, flexibility, and scalability for your IT infrastructure. Understand the differences between IaaS, PaaS, and SaaS, and see how businesses use it effectively.

What is IaaS?

IaaS stands for Infrastructure as a Service. NIST (SP 800-145) defines it as provisioning processing, storage, and networks to run any software, which can include operating systems. Think of it as renting the basics of a computer system – servers, storage, and networking – from a cloud provider rather than buying and maintaining your own hardware.

 

Think of it as renting an equipped kitchen rather than building one.

Tip

Consider PaaS (Platform as a Service) or SaaS (Software as a Service), which offer pre-built solutions and require less technical management.

What is IaaS vs. PaaS vs. SaaS?

IaaS, PaaS, and SaaS are the three main types of cloud computing services:

 

  • IaaS (Infrastructure as a Service): You rent the basics (virtual servers, storage, networking) and then build your applications and systems on top of them.
  • PaaS (Platform as a Service): A complete platform with tools and services for developing, deploying, and managing applications.
  • SaaS (Software as a Service): Software applications for use over the internet, without installing or maintaining them yourself.

 

The difference between IaaS and SaaS is the amount of control and responsibility you have. With IaaS, you have more control and responsibility, whereas with SaaS, you have less.

 

IaaS is like renting a plot of land and constructing a house. PaaS is like renting an apartment. SaaS is like renting a furnished apartment.

 

 
Characteristic IaaS (Infrastructure as a Service) PaaS (Platform as a Service) SaaS (Software as a Service)
Core Offering
What You Get Virtual servers, storage, networking Development tools, database management, business analytics Ready-to-use software applications
Control Level High control, more responsibility Moderate control Minimal control
Management Responsibilities
Infrastructure Management Provider manages hardware Provider manages infrastructure Provider manages all infrastructure
Software Management You manage OS, applications Provider manages runtime, middleware Provider manages all software
Ideal Use Cases
Best Suited For Businesses needing custom infrastructure, startups, fluctuating workloads Developers wanting to focus on application development Businesses seeking ready-to-use solutions with minimal IT overhead

Why Do We Use IaaS?

IaaS offers such things as:

 

  • Cost: Direct hardware investments are not a prerequisite, and maintenance expenditures typically manifest at a lower degree. IaaS is usually billed pay-as-you-go for the resources you use.
  • Flexibility: The operating system, software, and configurations can be specified by the user.
  • Availability: Redundant infrastructure correlates with the availability of data and applications.
  • Scalability: It involves modifying resource levels to align with shifts in demand.

 

This makes IaaS a way for companies to access computing resources without managing their own infrastructure. Under the hood, IaaS relies on virtualization: the provider creates virtual versions of its servers, storage, and networks that behave like physical ones (AWS).

 

IaaS is for: businesses with fluctuating workloads, startups, and organizations that need to deploy applications or test environments.

Who Uses IaaS and How?

IaaS is used by businesses and individuals:

 

  • Startups: launch and scale without investing in infrastructure
  • Enterprises: modernize their IT infrastructure and cut costs.
  • Developers: set up development and testing environments
  • Anyone who needs access to computing resources.

Is IaaS a Managed Service, and Why Not Use It?

IaaS is a partly managed service: in NIST’s definition (SP 800-145), you control the operating systems, storage, and deployed applications, but not the underlying cloud infrastructure (NIST). This gives you more control but also requires more technical expertise.

 

If you lack the technical skills or resources to manage your own infrastructure, consider PaaS or SaaS solutions, which offer a higher level of abstraction. One provider can offer both models: on Azure, Microsoft describes IaaS as provisioning virtual machines, while App Service and Container Apps are its platform as a service (PaaS) offerings (Microsoft Learn). But if you need control over your environment and want to customize it, IaaS is recommended.

Conclusion

IaaS offers a way to access the computing resources to run your business. By understanding it, you can make the decision about whether it’s the solution for you.

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