Cloud Service Models

What is a Cloud Service Model?

Published: October 9, 2024

Last updated: February 4, 2025

Understand cloud service models like SaaS, PaaS, and IaaS. This guide explains their unique characteristics and how they fit within the cloud computing landscape.

What is a Cloud Service Model?

Cloud service models are the way in which computing services are fulfilled through the internet. Basically, you will rent rather than own the physical hardware and software, which is then accessed through the cloud as a pay-as-you-go service.

What are the main Cloud Service Models?

The three main cloud service models are: 

  • Software as a Service (SaaS): This service is ready-to-use software accessed through an application via a mobile app or web browser. Examples include Google Workspace, Microsoft 365, Salesforce.
  • Platform as a Service (PaaS): Removing the need to manage servers, storage, or operating systems, PaaS is a platform for developers to build, test, deploy, and manage applications. Examples include AWS Elastic Beanstalk, Google App Engine, and Heroku. 
  • Infrastructure as a Service (IaaS): With minimal limits over your infrastructure, compared to PaaS and SaaS, IaaS provides digital services such as virtual machines, storage, and networks. Examples include AWS EC2, Google Compute Engine, Microsoft Azure Virtual Machines.

What are the key differences between SaaS, PaaS, and IaaS?

The main differences between the cloud service models are: 

 

Comprehensive Comparison of Cloud Service Models: SaaS vs PaaS vs IaaS
Feature SaaS PaaS IaaS
Control & Management
User Controls Applications only Applications and data Applications, data, runtime, middleware, OS
Provider Controls Full infrastructure and software stack Infrastructure and development platform Physical infrastructure only
Management Complexity Minimal Moderate High
Usage & Implementation
Primary Users End users Developers IT Administrators
Technical Expertise Required Minimal Moderate to High Extensive
Typical Use Cases Email, CRM, productivity suites Application development and testing Virtual machines, data storage, hosting
Business Considerations
Cost Structure Subscription-based, per user Usage-based, development focused Resource consumption based
Scalability Limited to application features Platform-dependent scaling Highly flexible scaling
Customization Level Limited to application settings High within platform constraints Complete infrastructure control

Why is SaaS Considered a Type of Cloud Computing?

The applications are hosted on the provider’s servers, which are then accessed via the internet; SaaS is considered a cloud computing model because there is no need to install and maintain the software on any of their own hardware.

How to Choose the Right Cloud Service Model for Your Business

For a good fit, consider the following factors:

  • Budget: Consider what you are willing to spend, but keep in mind that it ranges from SaaS to IaaS when it comes to the differences in expense.
  • Business Needs: Think about your unique needs. Do you require a full software application and development platform?
  • Control: If this is a factor, consider that IaaS offers the most, while SaaS offers the least.
  • Technical Expertise: Does your team have the necessary knowledge? SaaS requires the least technical expertise, while SaaS requires the most.

Conclusion

There are options for all businesses when choosing cloud computing. Once you understand your needs for these services, an informed decision can be made about which you are most aligned with to meet your specific needs.

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