“The cloud services companies of all sizes…The cloud is for everyone. The cloud is a democracy.” – Marc Benioff, CEO – Salesforce.com


Cloud computing's importance is evident from the above quote. In fact, the total cloud computing market will reach up to $1240.9 billion by 2027! This makes one thing clear; no business can ignore cloud computing and its advantages. And to implement it successfully, you need to be familiar with the right cloud computing service models for your business.


To help you with the same, here is a detailed guide on Cloud Service Models with examples, their pros and cons, and use cases. 


What is Cloud Computing Service Models

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Cloud computing means delivering computing resources or services on the internet. And a cloud services model is a standardized framework for delivering the same.  In simple words, Cloud computing service models refer to ways in which cloud services can be provided to organizations or companies 


These Cloud Service Models allow your business various levels of control, flexibility, and management over your IT resources. 

Types of Cloud Computing Service Models

There are three types of cloud service models.

  • Software as a Service
  • Platform as a Service
  • Infrastructure as a Service


Let’s look at them one by one. 

Software as a service (SaaS)


SaaS is the most dominating model in the Cloud Native Development Services market. In fact, Gartner forecasts that SaaS will generate more than $208 billion in end-user spending in 2023. 

You may also have come across platforms using this model many times. With 6 billion businesses using it, Google Workspace is a prime example of this. If you use G Workspace, you know you can access it directly from your browser without downloading it.


This is what the SaaS model is.  In this model, businesses can access software over the Internet via a subscription model. Under this model, the vendor provides ready-to-use software and hosts everything: servers, storage, networking, middleware, and data storage. Plus, they also take care of the updates and patches. 


Thus, with SaaS, you get a ready-to-use application with no need to download and install the same. This is why it is also known as “on-demand software”.

  • Example:


Some well-known examples of SaaS are Netflix, Dropbox, Shopify, and Google Workspace.


  • Use Anytime, anywhere: 

You can access SaaS applications from any device no matter where you are. This helps your team to work remotely and also boost collaboration. Plus, you also need not worry about keeping the software updated on every device.

  • Payment model: 

Most SaaS providers offer a subscription model. This way you know in prior how much monthly expense are you incurring on this software. You can thus avoid any hidden surprises and create a budget easily.

  • Minimal Cost: 

If you don’t want to make a huge investment in creating an application this model is the best. As the third party takes care of everything from creation, and maintenance, to security of the software. This can be super cost-effective.

When to Choose This Model?


A SaaS application is ideal when

  • You want to give minimal input to an application. 
  •  If you are just starting your business or running a small business this can save you a lot of money and time. 
  • Also, if you have a small project and want to get done with it quickly.



  • Data security: 

As a third-party vendor maintains and updates the application, you have no control over the security of your data. So, if a leak happens, anyone can have access to your data.

  • Open Integration: 

This is a major challenge with SaaS. You may find it difficult to integrate it with existing applications and services. So, if a SaaS model doesn’t support open integration, compatibility issues may arise.


  • Limited Customization: 

When you host an application you get more control over the application and customization. So, you may customize it as per your unique needs and have to operate it as offered by the provider.


Platform as a service (PaaS)


In this model, the Cloud Native Development Services rely on virtualization. In PaaS, you get framework software and tools needed to build apps and software– all accessible through the internet. 


Thus, in SaaS, you get access to software through the internet, whereas in PaaS you get online tools, Cloud Native Application development frameworks, databases, and infrastructure to streamline an application development process. 

  • Example


Amazon web services, Google Cloud platform, Oracle Cloud platform, Microsoft Azure, and IBM Cloud.


  • Collaboration: 

If you are relying highly on remote working, this can be the most suitable model as it allows multiple-user access. Also, this model provides necessary development tools to development and operation teams which they can access through the internet from anywhere.

  • Deploy Faster: 

As developers don’t need to start from scratch, they can deploy the Cloud Native Application Development faster in a few hours rather than spending months on it.

  • Save Time and Money:

With PaaS, your developer can save time in writing long codes. This brings their creative side like testing, deploying, and creating. They are also freed from the task of software updates and security patches

When You Need this Model?


The PaaS Model is Ideal when;

  • If you need a setup where multiple developers can work together on the same project from anywhere.
  • If you are starting your business, and need to develop your application developers only need to focus on deploying the app.
  • If you are a large organization and want to streamline your updates and maintenance of security patches.


  • Limited Control: If you need complete control over your IT resources, compliance, security, or customization this model may not be suitable. This is because a third-party provider manages the underlying infrastructure.

  • Data Security: As a third-party provider manages the framework, there may be concerns of privacy. You must ensure that your data is protected from unauthorized access and breaches.

  • Runtime: You may find it difficult to find a PaaS solution tailored to your language and business framework.


Infrastructure as a service (IaaS)


This is one of the most flexible Cloud Computing Service Models. In this model, a third-party provider offers you virtualized computing resources such as storage, servers, and networking online. In this model, you can have complete control over you’re the hardware that runs your application or stores data. 


You have a pay-as-you-go model, allowing you to expand or reduce resources on demand. Thus, you can manage your resources as per needs online instead of buying and maintaining costly hardware.

  • Example


Digital Ocean, Linode, Rackspace, AWS, Cisco Meta pod, Microsoft Azure, Google Compute Engine (GCE)


  • No Onsite Infrastructure Needed: 

Maintaining on-premise physical hardware can be time-consuming and costly. Plus, you have to maintain and update them regularly. With IaaS you get rid of all this. Also, you can purchase more resources as you grow.

  •  Quick Deployment:

As you have more scalability in this model, you can test new ideas quickly and deploy them faster to more users.

  • Better Security:

IaaS provider offers better security measures, two-factor authentication, and disaster recovery plans ensuring business continuity. 

When You Need this Model?


The IaaS Model is Ideal when;

  • If you are running an e-commerce business and see constant spikes in your traffic as you can scale up and down on demand
  • If you are a start-up it is not viable to spend most of your capital on setting up IT infrastructure
  • If you want to set up a quick development and testing environment



  • Internal Challenges: 

As you will be moving to the cloud from on-premise you may face the challenge of migrating some of your legacy data. Plus, you need to incur training expenses if your IT team is not well-versed with cloud setup.

  • Time consuming: 

Because the third-party provider offers only servers and API, you need to configure everything else on your own.


IaaS vs SaaS vs PaaS 

Wrapping Up

The answer to your business’s wants to increase their productivity and efficiency is cloud computing. However, choosing the right cloud service models becomes extremely important to succeed in using a cloud model. Each of the Cloud Service Models has its own benefits and challenges and is up to you to decide what benefits outweigh the challenges.

If you need any help with cloud computing services or Cloud Native Application Development, you can count on us. With years of experience in cloud environments, our developers have made cloud computing fruitful decisions for many businesses like yours.

Contact Us Now to Get Started with Cloud Computing


  • 01

    What is the best - SaaS, PaaS or IaaS?

    • The best Cloud Native Development Services model depends on your business needs. Each one offers different features and tradeoffs. So, if you need out-of-the-box features without maintenance, SaaS may be best. If you want to build your own applications, PaaS can provide the right platform. And if you need maximum flexibility and control over infrastructure, IaaS is the way to go.

  • 02

    What's the difference between PaaS and SaaS Cloud Service Models?

    • The key difference is that with SaaS, the entire application is managed by the provider. You just use the software. With PaaS, you get a platform to build your custom Cloud Native Application Development.

  • 03

    What's the difference between IaaS and PaaS Cloud Service Models?

    • With IaaS, you have more direct control over the operating systems and other low-level infrastructure. In PaaS, you have greater control over your own applications and software, while the platform provider manages the infrastructure.