Cloud based services

IaaS vs. PaaS vs. SaaS-What are the differences?

With more and more organizations opting for cloud computing technology rather than setting up their own on-premises infrastructure; digital transformation has progressed a lot over time. Presently, the IT industry has a multitude of innovative software compatible with powerful cloud models.

Companies who desire to optimize their systems using these services, need to carry out a thorough research on the pros and cons of each model, before committing to a specific portfolio; only then can a seamless working system be ensured.

However, this is easier said than done as a simple Google search on cloud computing reveals up to 397 million answers! Something that can be very harrowing and misleading for independent companies and buyers.

Cloud permits companies to store data across an array of remote servers as per their choice. It also enables important services, typically: hybrid cloud, disaster recovery, data security, file data analytics, cloud storage and backup. Fundamentally, cloud computing contains a trio of ‘as a service’ models, namely:

  1. IaaS: Infrastructure as a Service
  2. PaaS: Platform as a Service
  3. SaaS: Software as a Service

Companies frequently ask questions like what is Cloud computing? How does it work? What are it’s technicalities, and why is it recommended as a solution by so many? To discern this, a basic understanding of IaaS, PaaS and SaaS, along with their differences is essential.

Infrastructure as a Service (IaaS):

IaaS is a type of virtual computing service accessible via the internet. In this type of solution, a cloud provider directs various IT programs such as: data collection, networking, and managing centralized resources. Service provider also grants consumers authority to command its virtual machinery while other physical infrastructures tasked with supporting the virtualized software remain under their management.

What does IaaS do?

IaaS vendors accommodate a plethora of additional services along with standard infrastructure constituents, known to make it more effective and secure. They are:

  1. Administration
  2. Storage adaptability
  3. Hassle- free traffic management
  4. Data protection

Organizations using IaaS Solutions:

IaaS solutions comprise an extensive tally of hosted infrastructure, for e.g., Bare Metal, DPC (Dedicated Private Cloud), and VPC (Virtual Private Cloud). Following are some of the most popular IaaS vendors:

  1. Amazon Web Services
  2. Microsoft Azure Cloud Hosting
  3. Google Compute
  4. INAP Bare Metal (attainable API)

IaaS Pros and Cons:

 Organizations are known to prefer IaaS because:

  1. It is budget friendly
  2. It can sustain critical central infrastructures.
  3. It is very scalable and can effortlessly scale up whenever workload increases.
  4. Companies that are unable to afford third-party hosts can establish IaaS on-premises which work equally well. 
  5. IaaS sellers employ the pay-as-you-go service, which eliminates unnecessary capital payments

Nothing in this world is ever completely perfect; similarly IaaS consumers should keep an eye out for possible setbacks, such as:

  • Consumers would need to run a ROI or Return on Investment formula to corroborate their budget, workload and performance syncs with the goals set.

Platform as a Service (PaaS):

PaaS involves a third-party host set with distributing hardware and software equipment to consumers via the internet. Generally, this service is employed to draft, develop and modify applications, by companies that don’t wish to take responsibility for administering hardware, establishing networks or buying and managing software licenses, in lieu, these companies concentrate their efforts on software development and customer needs and services.

PaaS providers on their infrastructure host software and hardware; thus, consumers only have to run in-house software and hardware to generate a program.

What does PaaS do?

Services accommodated by the PaaS solution include:

  1. Database Integration
  2. Application testing
  3. Data Protection
  4. Developing Team Collaboration
  5. WSI (Web Service Integration)
  6. Development and deployment

Companies using PaaS Solutions:

  1. Linux Apache Stratos
  2. AWS (Amazon Web Services)
  3. IBM
  4. Google App Engine

PaaS Advantages:

Certain aspects of PaaS make it more beneficial than others, thus, companies that are considering subscribing to this service, must be aware that:

  1. The primary advantage of PaaS is that hosts provide the entire necessary infrastructure, which is accessible anywhere through the use of a web browser.
  2. PaaS has uncomplicated features.
  3. Per-use payment service removes added capital expenses.

PaaS Disadvantages:

Just like IaaS, PaaS has its limitations too. Therefore, it would be best for a company to consider the risks before acquiring this service. Some of the risks are:

  1. PaaS providers improve the service effectiveness by making internal changes to the application, developmental tools or its policy. Companies should consider this factor before subscribing to this model.
  2. A significant portion of data is protected by the PaaS host and isn’t under the consumer’s authority; this could cause future obstacles.
  3. PaaS service, despite the providers’ efforts, isn’t very resilient. In case of any service disruption consumers can be negatively affected and the company might face productivity drop costs.
  4. PaaS buyers also face the threat of Vendor Lock-in; this usually occurs when data is being shifted from a device to another one.

Software as a Service (SaaS):

SaaS is a kind of deployment model where the service host provides programs accessible to consumers via the internet; this is exceptionally beneficial for organizations scattered worldwide. In addition, users aren’t required to install anything to enjoy the service, making it very easy to use and scalable.

SaaS model has certain primary features that a company must be aware of before subscribing to it:

  1. Consumers have to purchase a subscription in order to acquire services.
  2. The user, itself, doesn’t have to run any software.
  3. All updates are automated.

If the buyers have little to no understanding of backend management and development services and neither does they wish to understand them, SaaS would definitely be the best and most convenient service they could opt for..

SaaS Working Mechanism:

  1. SaaS solutions are typically multi-tenant; a particular version of the software supported by the seller’s server will be accessible to each and every consumer.
  2. The same version of the application will be available to all users; however the data of each unique consumer will be kept separated from another’s.
  3. Companies only need to fix issues on the shared instance, and all changes would be automatically implemented  across all applications in use, this hassle-free alternative is loved by all.

Companies Using SaaS Services:

  1. Microsoft Office 365
  2. Shopify
  3. Zoom

SaaS Privileges:

So far, SaaS has been the most scalable, seamless, and accessible service to use. It has a long list of benefits that must be acknowledge before subscribing to other solutions. Some of them are:

  1. SaaS consuming organizations don’t need to possess any data centers or run any software, cutting down potential costs of obtaining hardware equipment and their maintenance.
  2. SaaS services can be, more often than not, customized. They can also be interlinked with other services even across applications through a standard host.
  3. SaaS applications are available on the internet, thus, accessible to all.
  4. SaaS service is very flexible and scalable.
  5. Payments are fixed and recurring thus, buyers and organizations can better plan their budgets as all unforeseen expenses are eliminated.

SaaS Limitations:

SaaS isn’t without its share limitations. Since users are utterly dependent on the software vendor to ensure the smooth functioning of applications, several things can go wrong:

  1. Critical patching for SaaS servers can be suspended abruptly.
  2. End-User-Development (EUD) assists unprofessional developers in programming softwares, however this facility is limited in SaaS model.
  3. SaaS users have often expressed concern over data protection.

Why are Industries Opting for Cloud Services:

Cloud Computing services have taken over the global market. It has redefined the shift in consumption patterns, now, more than ever, people are choosing to digitalize their lifestyle. Products are being sold and bought online, records are being saved across online databases, social media, online documents and entertainment etc. Cloud has become an omnipresent part of the modern world.

E-commerce:

Consumer habits have transitioned to give retailers a huge opportunity to anchor their online presence and grow their businesses. This paradigm shift has led to e-commerce benefit hugely from cloud services. Any company who strives to inflate their sales must pay careful attention to the benefits of cloud computing.

  1. Scalability: Cloud supports retailers build their online platform steadily as their business grows. They bypass the need to establish infrastructure middleware or provision remote servers of their own, consequently growth rate of these companies boosts several folds.
  2. Security: Cloud computing ensures all online monetary exchanges between the seller and buyer are PCI-DSS certified and that buyers receive the same product as described by the dealer.
  3. Profit: For small-to-medium-enterprises, the pay-as-you-go-service is very beneficial, as savings can be invested elsewhere.
  4. Durability: Whenever the company starts a new ad-campaign or sale strategy the site traffic spikes, usually independent companies observe site crashes and instability. However cloud users are saved from this trouble.

Independent Software Vendors (ISVs):

There are a lot of reasons Independent Software Vendors should consider moving to cloud, but the first and foremost reason is because ‘it levels out the playing field’ among corporations of massive size.

  1. Cost-effective: SMEs can expand their system to the same level as big corporations without investing a lot in hardware acquisition. Increase or decrease in data storage can be easily managed by pay-per-use service.
  2. Accessible and easy deployment: Vendors who use cloud can provide their customers a secure and flexible platform to store their data on-site. Hybrid Clouds can also be used to access a multi-tenant approach. Updates through cloud computing are several fold faster and easier to install.
  3. Expands market: Vendors on cloud can expand their market on a massive scale with minimal expenses, they can increase sales, satisfy their customers while also reaching new ones!

Startups:

Cloud computing is a very old technology, although, only recently have companies aggressively started capitalizing on it. It has still lowered barriers to new business formations.

All kinds of startups can avail the benefits of cloud technology. International companies can use cloud computing to collaborate with each other over long distances. Cloud presents a lot of boons to start ups, some of these benefits have been explored below:

  1. Disaster Recovery: Startups have to deal with all kinds of data losses, they could occur because of data theft, corrupted systems or any natural disaster. Thus, it is crucial that backup be available in case of loss. It might save the company a lot of money and legal expenses.
  2. Remote Access: In 2019 the world came to an abrupt stop, when a viral disease of the name COVID-19 spread around the world like a forest fire bringing life to a standstill. Offices, schools and businesses closed in its wake and no roaming was allowed, It was then, when the importance of remote access was realised. Employees started to work from their homes and all kinds of meetings were held virtually. Companies use cloud based tools to come together and work like before– just from home.
  3. Environmental friendliness: Startups can decrease a big portion of their carbon footprint by opting for cloud computing. It further enables remote working which decreases travel costs and stores all data digitally which reduces paper consumption to minimum. Thus, making the work environment sustainable.

Government:

Cloud computing is being used at a massive scale all around the world by private firms, however, now government agencies are slowly shifting to cloud management too. Some of the advantages, government can reap if they switch over to cloud computing are:

  1. Self-service: Governmental agencies all over the have started providing Citizen Service or self-service. It let’s public access their gas, water and electricity bills or their loans and medical fees, which can help them regulate their expenses and consumption accordingly.
  2. Flexibility: Government can store and protect its data without dealing with the hassle of buying, managing software licences and infrastructure middleware. Cloud services make it easy to change or modify services of any kind, this is exceptionally important when handling risky management tasks that require a lot of space and power.
  3. Infrastructure consolidation: By using cloud services, the government is conserving money and workforce, both of which are then distributed elsewhere.
  4. Collaboration: Collaboration between different government wings is simplified and related files and documents are assigned credentials, these docs can be accessed from anywhere in the world with the availability of internet connection.

Questions to Ask:

Your company must touch on several aspects of their position before subscribing to any model:

  1. Is the company able to afford necessary equipment required to support their client’s base?
  2. Is the company’s software secure? Will it still function smoothly when changes are being made to it?
  3. Is the company capable of administering hardware setups without jeopardizing their application development efforts?
  4. Will a browser be able to support the organization’s software made to assist customers with limited command?
  5. Would the XaaS model be profitable to the company?

Companies ought to consult an advisor before they move forward with any of the aforementioned cloud services.

Conclusion:

If your company is new to cloud computing and is still contemplating which model they would like to subscribe to, we’d recommend; you carefully read the information provided above and evaluate the benefits and losses for each service as per the needs and demands of your company.

However, if your company already uses cloud computing services but wants to modernize their service further, we recommend you observe the tools already in your company’s use. It would be even better if the company consulted a professional before settling on any service.