Topics Covered:

1. Introduction
2. What are the differences between IaaS, PaaS, and SaaS?
3. Infrastructure-as-a-Service (IaaS)
4. Platform-as-a-Service (PaaS)
5. Software-as-a-Service (SaaS)
6. IaaS vs. PaaS vs. SaaS market share
7. Conclusion

1. Introduction
With the increased adoption of cloud environments, more and more businesses are moving away
from on-premise IT solutions and have come to rely on IT infrastructures, platforms, and software
offered as a service. But what does that look like in practice and what are the differences between
the various service models?
Learn all about IaaS vs PaaS vs SaaS and how they help create a cloud-computing
environment that is tailored to your needs. We’ll also take a look at some examples, so you know
how as-a-service options integrate into your current IT landscape and what benefits and
disadvantages to expect.

2.0 What are the differences between IaaS, PaaS, and SaaS?
IaaS, PaaS, and SaaS stand for Infrastructure-as-a-Service, Platform-as-a-Service, and Software-
as-a-Service. Each describes a way of how you can use the cloud for your organization. The
service models don’t stand in direct opposition to each other but cover a degree of IT management,
thus offering an alternative to self-managed on-premise IT solutions.
While traditional solutions require you to manage your own IT infrastructure and in-house
software, IaaS provides a pay-as-you-go approach for storage, networking, and virtualization. In
addition, PaaS includes even more services like hardware and software development tools
available via the web. And with SaaS, you get the highest degree of vendor management by
“renting” full software solutions.
The diagram “As-a-Service” below illustrates the differences between IaaS vs PaaS vs SaaS and
the level of vendor management that you get with each service model.
Examples of Three Cloud computing models are following:
Examples of Saas Examples of Paas Examples of Iaas
 Salesforce  Google App Engine  Amazon Web Services
 Cisco WebEx  OpenShift (AWS)
 Dropbox  Heroku  Google Compute
 ZenDesk  Force.com Engine (GCE)
 MailChimp  Windows Azure  IBM Cloud
 Slack  AWS Elastic Beanstalk  Microsoft Azure
 HubSpot  Apache Stratos  Rackspace
 DocuSign  Magento Commerce  Linode
 Google Apps  AWS Lamda  Cisco Metacloud
 Microsoft Office 365  SAP Cloud  Digital Ocean
 Vultr
 Oracle Cloud
IaaS vs. PaaS
Infrastructure-as-a-Service offers you a great deal of control over your operating systems. It is the
foundation of your cloud-computing environment. With Platform-as-a-Service on the other hand,
you can build apps without having to host them on-premise, so you benefit from more flexibility
but get a little less control.
Which service model is best for you, depends on your enterprise’s needs. For example: If you are
looking to build a website, an IaaS product like Amazon Web Services can provide the
infrastructure for hosting the site and its applications. However, if you want to add custom
features, a PaaS product like Google App Engine does not only host your site but also lets your
developers design and deploy custom apps.

SaaS vs. PaaS

As described above, Platform-as-a-Service is used as a way to build new products on top of your
already existing network. But Software-as-a-Service takes this one step further. SaaS products are
entirely managed by the vendor and ready to use by your teams.
So when should you choose a PaaS product over a SaaS product? Example: If you want to create a
payroll app that is tailored to your HR needs, Platform-as-a-Service provides all the tools you
would need to succeed. Once your product is finished, it can be considered SaaS. However, if you
prefer out-of-the-box ease of use, a payroll app like Quickbooks would be the better option.

IaaS vs. SaaS

With a Software-as-a-Service product, you are getting the most service from your third-party
provider in terms of software management and maintenance. With Infrastructure-as-a-Service on
the other hand, the provider only supplies and maintains core components such as servers or
storage.
Which model is best for your business highly depends on what you are trying to achieve. If you
need a maximum amount of control within the cloud environment and want to avoid external
management data issues that could compromise the functionality or security of your data, IaaS is
the best option. However, if you don’t need much flexibility and value ease of use, migrating to a
small-scale SaaS solution is the better idea.
Scroll down to learn more about each one.
Infrastructure-as-a-Service (IaaS)
IaaS stands for Infrastructure-as-a-Service. It allows organizations to purchase resources like
networking and storage on-demand instead of having to buy costly hardware. IaaS is highly
scalable and offers businesses more flexibility than on-premise solutions.
IaaS can be seen as the basic layer in cloud computing. The virtualized components available
through the internet are equivalent to the servers and hardware companies would traditionally store
in their building.
When to use IaaS?
Organizations of all sizes can benefit from IaaS. Small companies who want to avoid purchasing
hardware or don’t have the time, staff, or ability to host large data centers on-premise, as well as
larger businesses who want to stay in control of their apps and only want to consume the resources
they actually need. The scalability of IaaS is also great for companies that experience rapid growth.

IaaS delivery
With IaaS, enterprises get a full cloud computing infrastructure including network, servers,
operating system, and data centers/storage. Full access is granted through virtualization technology
via dashboard or API. This way, clients have complete control over their computing infrastructure.
The IaaS provider is responsible for managing and maintaining servers, hard drives, storage, and
virtualization tools. However, applications, runtime, OS, middleware, and data still need to be
managed by the client.

IaaS benefits
IaaS offers many benefits to companies who want to migrate to the cloud. The most compelling
ones are listed below.
 Flexibility: IaaS is more flexible than all the other cloud computing models.
 Automation: With IaaS, you can easily automate the deployment of servers, storage, and
networking.
 Cost-reduction: IaaS lets you purchase resources on an as-needed basis, so you only pay
for what you’re actually using.
 Control: IaaS lets you retain complete control of your infrastructure.
 Scalability: Since you’re only “renting” IT components, you can easily upscale or
downscale your resources.

IaaS disadvantages
IaaS also has some potential drawbacks that you should be aware of before settling on a provider.
 Legacy systems: Before migrating to the cloud, legacy apps might have to be enhanced for
the new type of infrastructure.
 Internal training: Staff might have to undergo additional training to effectively manage
and monitor IaaS.
 Security: While you are in control over your apps, data, middleware, and the OS platform,
you are also responsible for mitigating new security threats.
Platform-as-a-Service (PaaS)
PaaS stands for Platform-as-a-Service. The platform that can be accessed through the internet
provides developers with a framework and tools to build apps and software that are tailored to the
organization’s individual needs.
PaaS can be seen as a scaled-down version of IaaS. Just like IaaS, the customers have access to
servers and data centers which are maintained and managed by the third-party provider. However,
they mainly use PaaS for building custom SaaS applications.

When to use PaaS?

There are several situations when a Platform-as-a-Service would be a good idea. For example, if
you have several developers working on the same development project, PaaS is a great way to
streamline workflows.
You can even include other vendors and stay flexible during the entire process. PaaS is also the
way to go if your organization requires customized applications that need to be developed and
deployed in a short amount of time.

PaaS delivery
PaaS delivery can be compared to the way SaaS is delivered. The only difference is that customers
don’t access online software, but an online platform for the creation of software. And since tools
and environment are ready-to-use, software engineers and developers can concentrate on building
applications without having to worry about other components like operation systems, storage, and
infrastructure.

PaaS benefits
Below are a few of the biggest benefits that speak for adopting PaaS as a cloud computing model.
 Cost-reduction: PaaS is a simple, cost-effective way to quickly develop and deploy new
apps.
 Scalability: PaaS service models can easily be adjusted to a developer’s needs.
 Migration: With PaaS, it’s easy to migrate to a hybrid cloud model.
 Less coding: Your developer teams have to do a lot less coding than before.
 Freedom: PaaS frees up time as developers can customize apps without having to maintain
the software.

PaaS disadvantages
Not surprisingly, there are also some drawbacks that you need to be aware of before subscribing to
a PaaS cloud computing model.
 Data security: Using third-party vendor-controlled servers means that there are various
security risks to look out for.
 Runtime issues: Some PaaS solutions are not optimized for the language or framework
that your development teams are used to.
 Integrations: You might encounter some challenges with integrating new applications as
not every component of your legacy IT system is built for the cloud.
  Limitations: Customized cloud operations tend to have automated workflows that might
not be compatible with PaaS solutions, thus limiting operational capabilities for your end-
user.

Software-as-a-Service (SaaS)
SaaS stands for Software-as-a-Service. These entire cloud application services are the most
common form of cloud computing. They are ready-to-use and often run directly through the
client’s web browser, meaning there is no need for installations or downloads like it with on-prem
solutions.
SaaS is hosted on remote servers and fully managed, updated, and maintained by a third-party
vendor. This results in less responsibility but also less control for the end-user.

When to use SaaS?

SaaS is ideal for small companies or startups that don’t have the capacity to develop their own
software applications. From e-commerce to short-term projects, SaaS is the quickest and easiest
solution if you don’t need highly customized applications. SaaS is also a great option for
applications that are not used very often, e.g. tax software.

SaaS delivery
SaaS is delivered as a fully functional service and can be accessed remotely via any web browser,
allowing clients to work from anywhere. The users connect to the app through a dashboard or API
and rely on the SaaS provider when it comes to bug fixes, middleware, support, and any potential
technical issues.

SaaS benefits
Software-as-a-Service provides several advantages to businesses and their teams.
 Cost-reduction: SaaS usually resides in a shared or multi-tenant environment. When
managed correctly, the license costs are lower compared to traditional models.
 Scalability: SaaS solutions are easy to scale up or down based on your specific needs.
 Integration: Many SaaS solutions have integrations with other SaaS offerings, so you
don’t have to buy another server or software.
 Upgrades: With SaaS, you instantly benefit from new software releases and upgrades.
 Ease of use: Without installation or download, SaaS is easy to use and comes with baked-
in best practices.

SaaS disadvantages
Before opting for a SaaS cloud computing model, you should also be aware of its potential
drawbacks.
 Data security: Since large volumes of sensitive data are being exchanged with off-premise
servers, security and compliance might be compromised.
 Limited customization: SaaS only allows for minimal customization when it comes to
features and capabilities.
  Interoperability: It might be difficult to integrate SaaS with existing apps and services due
to dependencies.
 Less control: Users have very little control over functionalities, performance, downtime, or
how their data is governed.
 Wasted resources: With the ease of use and scalability SaaS provides, an organization's
SaaS stack includes many overlapping, underutilized, or unused apps. The value of SaaS
apps in the organization can drop without automated SaaS Management or SaaS
optimization processes in place.
 Shadow IT: Employees often purchase or sign up for new SaaS without the knowledge of
IT. Unmanaged SaaS apps could have potential security gaps.

IaaS vs. PaaS vs. SaaS market share

Below, you can see how the public cloud computing market share has developed over the course of
three years as well as its projection for 2022. The leading service in the cloud computing industry
is SaaS with a 39.4% cloud computing market share in 2021, followed by the fastest-growing
cloud service IaaS with 20.9%, and PaaS with 18.7%.
The trend shows that there is a slight decrease in SaaS, and a slight increase in IaaS and PaaS,
which is likely to continue over the next years. This may be due to companies acknowledging IaaS
for being more flexible and customizable when compared to ready-to-use SaaS solutions.
Nonetheless, the latter will likely remain dominant and stay the largest cloud service model in
terms of cloud spend.

Source: https://www.t4.ai/industry/cloud-computing-market-share

Conclusion
As you can tell, each cloud computing model is appropriate for different businesses and business
needs. And since each model has its pros and cons, it’s important to know what is more valuable to
you and your company – control, customization, or convenience. And once you’ve made a
decision, you need to find the right vendor that goes with your organization’s culture and
ultimately helps increase your teams’ productivity and efficiency.
Next to IaaS, PaaS, and SaaS, there are also other emerging cloud computing models that might be
of interest to you: Monitoring as-a-service (MaaS), Function as-a-service (FaaS), and
Communication as-a-service (CaaS). Each of them is targeted at businesses who seek select
services to remain competitive in a cloud-first market.
From Geeks for Geeks Websites about Difference among Saas, Paas and Iaas

Difference between IAAS, PAAS and SAAS

IAAS, PAAS and SAAS are sometimes referred to as cloud service models or cloud
computing service models. IaaS (Infrastructure as a Service) gives you virtual hardware like
servers and storage. PaaS (Platform as a Service) provides tools for building and managing
software applications. SaaS (Software as a Service) delivers ready-to-use software applications
over the internet. In this article, we will learn the difference between IAAS, PAAS and SAAS.
What is IAAS?
Infrastructure As A Service (IAAS) is means of delivering computing infrastructure as on-demand
services. It is one of the three fundamental cloud service models. The user purchases servers,
software data center space, or network equipment and rent those resources through a fully
outsourced, on-demand service model. It allows dynamic scaling and the resources are distributed
as a service. It generally includes multiple-user on a single piece of hardware.
It totally depends upon the customer to choose its resources wisely and as per need. Also, it
provides billing management too.
Characteristics of IAAS (Infrastructure as a Service)
 IAAS is like renting virtual computers and storage space in the cloud.
 You have control over the operating systems, applications, and development frameworks.
 Scaling resources up or down is easy based on your needs.
Example of IAAS (Infrastructure As A Service)
 Amazon Web Services
 Microsoft Azure
 Google Compute Engine
 Digital Ocean
What is PAAS?
Platform As A Service (PAAS) is a cloud delivery model for applications composed of services
managed by a third party. It provides elastic scaling of your application which allows developers to
build applications and services over the internet and the deployment models include public, private
and hybrid.
Basically, it is a service where a third-party provider provides both software and hardware tools to
the cloud computing. The tools which are provided are used by developers. PAAS is also known as
Application PAAS. It helps us to organize and maintain useful applications and services. It has a
well-equipped management system and is less expensive compared to IAAS.
Characteristics of PAAS (Platform as a Service)
 PAAS is like a toolkit for developers to build and deploy applications without worrying
about infrastructure.
 Provides pre-built tools, libraries, and development environments.
  Developers focus on building and managing applications, while the provider handles
infrastructure management.
 It speeds up the development process and allows for easy collaboration among developers.
Examples of PAAS (Platform as a Service)
 AWS Lambda
 Google App Engine
 Google Cloud
 IBM Cloud
What is SAAS?
Software As A Service (SAAS) allows users to run existing online applications and it is a model
software that is deployed as a hosting service and is accessed over Output Rephrased/Re-written
Text the internet or software delivery model during which software and its associated data are
hosted centrally and accessed using their client, usually an online browser over the web. SAAS
services are used for the development and deployment of modern applications.
It allows software and its functions to be accessed from anywhere with good internet connection
device and a browser. An application is hosted centrally and also provides access to multiple users
across various locations via the internet.
Characteristics of SAAS (Software as a Service)
 Applications are ready to use, and updates and maintenance are handled by the provider.
 You access the software through a web browser or app, usually paying a subscription fee.
 It’s convenient and requires minimal technical expertise, ideal for non-technical users.
Example of SAAS (Software as a Service)
 Salesforce
 Google Workspace apps
 Microsoft 365
 Trello
 Zoom
 Slack
 Adobe Creative Cloud
Difference between IAAS, PAAS and SAAS

Basis Of IAAS PAAS SAAS

Stands for Infrastructure as a service. Platform as a service. Software as a service.

Uses IAAS is used by network PAAS is used by developers. SAAS is used by the end user.
Basis Of IAAS PAAS SAAS

architects.

IAAS gives access to the PAAS gives access to run time

resources like virtual environment to deployment and
SAAS gives access to the end user.
machines and virtual development tools for
Access storage. application.

It is a service model that It is a cloud computing model

It is a service model in cloud
provides virtualized that delivers tools that are used
computing that hosts software to
computing resources over for the development of
make it available to clients.
Model the internet. applications.

There is no requirement about

It requires technical Some knowledge is required
Technical technicalities company handles
knowledge. for the basic setup.
understanding. everything.

It is popular among developers It is popular among consumers and

It is popular among
who focus on the development companies, such as file sharing,
developers and researchers.
Popularity of apps and scripts. email, and networking.

It has around a 12% It has about a 27 % rise in the cloud

It has around 32% increment.
Percentage rise increment. computing model.

Used by the skilled

Used by mid-level developers Used among the users of
developer to develop unique
to build applications. entertainment.
Usage applications.

Amazon Web Services, sun, Facebook, and Google search MS Office web, Facebook and
Cloud services. vCloud Express. engine. Google Apps.

Enterprise
AWS virtual private cloud. Microsoft Azure. IBM cloud analysis.
services.

Outsourced cloud
Salesforce Force.com, Gigaspaces. AWS, Terremark
services.

Operating System, Runtime,

Middleware, and Data of the application Nothing
User Controls Application data
Basis Of IAAS PAAS SAAS

It is highly scalable to suit the

It is highly scalable and It is highly scalable to suit the small,
different businesses according
flexible. mid and enterprise level business
Others to resources.

Advantages of IaaS
 The resources can be deployed by the provider to a customer’s environment at any given
time.
 Its ability to offer the users to scale the business based on their requirements.
 The provider has various options when deploying resources including virtual machines,
applications, storage, and networks.
 It has the potential to handle an immense number of users.
 It is easy to expand and saves a lot of money. Companies can afford the huge costs
associated with the implementation of advanced technologies.
 Cloud provides the architecture.
 Enhanced scalability and quite flexible.
 Dynamic workloads are supported.
Disadvantages of IaaS
 Security issues are there.
 Service and Network delays are quite a issue in IaaS.
When to Use IaaS
Choosing Infrastructure as a Service (IaaS) sets businesses up for future success, irrespective of
their size. With IaaS, one can easily adjust their resources as your business grows or changes, all
without dealing with physical hardware. This means one have to only pay for what they need,
keeping costs in check. Plus, they have total control over their setup, allowing them to customize it
to fit your needs and keep up with industry standards. If they run into any issues, they can count on
support from their provider to help out. And with IaaS, they are always up-to-date with the latest
tech advancements, keeping them competitive in the market. So, by using IaaS, businesses can stay
flexible, save money, and keep up with the times, paving the way for future innovation and
success.
Advantages of PaaS
 Programmers need not worry about what specific database or language the application has
been programmed in.
 It offers developers the to build applications without the overhead of the underlying
operating system or infrastructure.
 Provides the freedom to developers to focus on the application’s design while the platform
takes care of the language and the database.
 It is flexible and portable.
  It is quite affordable.
 It manages application development phases in the cloud very efficiently.
Disadvantages of PaaS
 Data is not secure and is at big risk.
 As data is stored both in local storage and cloud, there are high chances of data mismatch
while integrating the data.
When to Use PaaS
PaaS is ideal when developers prioritize cost-effectiveness and efficiency in creating unique
applications. By unloading tasks like software updates and security patches, PaaS enables
developers to focus on the creative aspects of app development, such as designing, testing, and
deploying. Use PaaS when you want to streamline development, reduce time spent on
maintenance, and maximize focus on innovation.
Advantages of SaaS
 It is a cloud computing service category providing a wide range of hosted capabilities and
services. These can be used to build and deploy web-based software applications.
 It provides a lower cost of ownership than on-premises software. The reason is it does not
require the purchase or installation of hardware or licenses.
 It can be easily accessed through a browser along a thin client.
 No cost is required for initial setup.
 Low maintenance costs.
 Installation time is less, so time is managed properly.
Disadvantages of SaaS
 Low performance.
 It has limited customization options.
 It has security and data concerns.
When to Use PaaS
SaaS Platform are ideal when you want applications to work smoothly without needing much
effort from you. It’s great for businesses that want quick access to tools like email, project
management, or customer relationship management (CRM) software.
Frequently Asked Questions (FAQs) related to Difference between IAAS, PAAS and SAAS
What does IAAS, PAAS and SAAS Stand For?
IaaS Stands for Infrastructure as a Service, PaaS Stands for Platform as a Service and SaaS
Stands for Software as a Service.
Is Netflix a SaaS?
Yes, Netflix is a SaaS Company.
What is XaaS?
XaaS (Everything as a Service or Anything as a Service) is a concept where various services are
delivered over the internet, providing users with access to a wide range of resources and
functionalities without the need for on-premises infrastructure.
Is EC2 IaaS or PaaS?
AWS Elastic Compute Service or EC2 is IaaS(Infrastructure as a Service).