Cloud computing services: SaaS vs PaaS vs IaaS

This article was originally published on 15/11/2022

Technology has had a significant influence on the way businesses operate. With the three main types of cloud services Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS), companies can look to upgrade their data management tools and aim to achieve their targets more effectively.

This article will help you understand how these cloud service solutions could help your business and the key differences between IaaS PaaS and SaaS in cloud computing.

During the COVID-19 pandemic, working from home emerged as a new normal among businesses and has continued in many UK firms subsequently. This, in many cases, will have led to companies introducing additional data security measures and enhancing remote working capabilities. 

For stable and secure operations using cloud infrastructure, companies can look to identify various SaaS, PaaS, and IaaS cloud computing services for businesses that could align with their requirements.

What are SaaS, PaaS, and IaaS services?

Broadly speaking, SaaS, PaaS, and IaaS are cloud-based service models that can be accessed using internet applications. These solutions can be differentiated based on their function, the technology services they host (hardware solutions located away from the recipient’s location), and their attributes.

There are, however, many business benefits of cloud computing as well as nuances to consider before adopting one of the three types of cloud service models. In the next section, we will explore the various uses, advantages, and challenges when considering SaaS vs PaaS vs IaaS.

What is Software-as-a-Service (SaaS) in Cloud Computing?

Software-as-a-Service (SaaS) is a program which is centrally hosted and delivered via cloud hosting to subscribers. SaaS application providers usually offer their software on an on-demand basis, where users can access its functions in return for registering and buying a subscription.

SaaS software, also known as on-demand software, is available for use through third-party platforms such as cloud computing service providers, which offer tools that are accessible over a public network. These solutions offer a range of business applications that could potentially increase operational efficiency.

Advantages of SaaS:

• Relatively easy integration with other SaaS solutions using application programming interfaces (APIs).
• The cost of application upgrades can potentially be lower than those for non-cloud based models.
• Reduces the cost of licensing and purchasing additional software resources.
• As SaaS software usually comes fully configured, this can help companies save time on installation and configuration.

Disadvantages of SaaS:

• Administrators may need to constantly monitor user access to prevent security breaches as the data is mostly managed by third party services.
• Potential data syncing issues owing to the use of different data formats could pose challenges for applications installed on-premise (software that operates at the company’s premises).
• The introduction of new versions could lead to companies spending extra on training expenses as updates are usually implemented irrespective of customer preferences.
• Switching from on-premise solutions to a cloud service model can be time-consuming.

While there are different types of SaaS solutions available for use, the National Cyber Security Center (NCSC), in its study, recommended that companies should enable SaaS solutions to be centrally managed, and users should be granted access as per their requirements to safeguard cloud security. It further highlighted that companies should monitor records of their system’s activities and investigate any suspicious activity, amongst other guidelines.

SaaS solutions can offer convenient access to important data, meaning users can quickly launch the software and work on their projects from anywhere. Some SaaS applications also enable users to export and share data in different formats, including .xml, .docx, .doc, and .pdf, which can be another helpful feature.

What is Platform-as-a-Service (PaaS) in cloud computing?

Platform-as-a-Service (PaaS) is described by Gartner as a cloud-based solution that offers an infrastructure for application development, i.e., middleware, as a service. In short, it allows companies to access many of the tools needed to design, test, deploy, and host software via public, private and hybrid cloud systems.

Advantages of PaaS:

• Reduces hardware installation expenses as users can scale up computing and storage resources as needed.
• Lowers application development time as some of these solutions enable users to access pre-built tools and templates.
• Prevents interruptions in workflows with prompt data backup solutions.
• Helps in developing applications quicker.

Disadvantages of PaaS:

• Could be difficult to operate with existing technology solutions that help in deploying, designing, and developing applications. 
• Could deny user login permits due to the controlled user access policy set by the service administrator.
• Only secures platforms and infrastructure services and not any other applications created by businesses.

With PaaS solutions, users may be able to save on additional software expenditure with access to a set of applications, including development tools and databases. Internet of Things (IoT) is one of the prominent applications of PaaS software.

What is Infrastructure-as-a-Service (IaaS) in cloud computing?

Infrastructure-as-a-Service (IaaS) is a cloud computing service model that provides businesses with comprehensive computing, data storage, and networking resources via a subscription. In this case, and unlike PaaS, it comprises all the tools necessary to operate as a digital business without needing dedicated on-site IT, networking, and data centre infrastructure. 

Advantages of IaaS:

• Could potentially secure access to operating systems, data centres, and hardware in the long term.
• IaaS services, unlike SaaS and PaaS solutions, could offer more scope for managing and customising data and applications. 
• Some IaaS services offer instant data recovery during any interruption or failure of services, which could ensure steady operational efficiency.
• Accommodates storage requirements when scaling down may be required, especially at peak times when greater cloud storage might be needed.

Disadvantages of IaaS:

• There may be difficulties in blocking access to a user if there is any misuse of credentials, as such services are not usually fully controlled by the administrator or server.
• Provides limited capabilities for customising and control to users outside of the organisation. 
• Some IaaS solutions could face challenges in interacting with existing systems.
• Might require changes in the workflow process to ensure optimum operability.

IaaS services can offer companies a flexible cloud computing solution by allowing access to applications, data storage, and networking solutions. Hosting complex websites and big data analysis are some of the applications of IaaS solutions.

Adoption of SaaS, PaaS, and IaaS software by SMEs

SaaS, PaaS, and IaaS services offer solutions that cater to information storage, security, and virtualisation of hardware platforms (creating virtual versions of computers or operating systems) that could help support diverse business operations. However, a proportion of small to midsize enterprises (SMEs) have not been able to fully capitalise on the benefits of these services. 

According to a study by the Organisation for Economic Co-operation and Development (OECD), while digitalisation of businesses has witnessed quick adoption, there has been a lag in digital adoption among SMEs, as they may prefer digitising only a few business functions primarily, such as marketing operations and administrative functions.

What are the three main “as a service” categories: In a nutshell

Overall, SaaS, PaaS, and IaaS solutions differ in various ways from each other, and have diverse uses, depending on an organisation’s requirements. Fundamentally, however, they offer, end-user software, wider platforms, and broad computing and app design and business infrastructure as services, which are accessible from anywhere via the web using cloud technology. 

Companies, particularly SMEs, with limited budgets or a preference for cost-effective solutions could benefit from these solutions to improve productivity. Cloud services, if implemented, should be able to support increased requests such as those created by the COVID-19 crisis or more general issues like a sudden rise in data traffic. 

In a published study, 51% of UK business leaders said that the shift to a cloud computing-based model saved their companies from collapse during the pandemic. Considering such numbers, it’s fair to note that with the implementation of such cloud-based services, SMEs can help ensure connectivity and operational flow no matter whether their business is remote or hybrid.