When it comes to cloud computing and the relationship the technology has with your business, there are three essential acronyms to understand: IaaS, PaaS, and SaaS.

Really, it might help to note that the last three letters are all the same, standing for “as a Service.” The first letter of the acronym, however, indicates the key differentiator between the services: how expansive the product is. What they all share is their ability to use the cloud, which is the capacity to run remotely on the Internet across various devices, instead of locally on one device or server. Where they differ is in their functionality, user experience, and deliverable end product.

We’ll outline each category of cloud computing from the most common in everyday use to the most technical and specialized for cloud computing experts.

SaaS: Software as a Service

More and more teams, especially teams that don’t work in the same office or have numerous colleagues working remotely or at home, are using SaaS products to get work done. These products are easy to install or use in a browser. They’re super easy to get up and running so you can jump in and work collaboratively right away. All the technical backend work will be managed for you.

Of course, these user-friendly SaaS programs also have some drawbacks. Any updates or upgrades, as needed as they may be, are up to the provider. Integrations with other tools may also be beholden to the provider’s discretion and timing as well. And since the programs are operating on the provider’s cloud-based infrastructure, when the provider is experiencing an outage or a security leak, you are too.

Examples include HubSpot, JIRA, Dropbox, and DocuSign.

PaaS: Platform as a Service

If building apps is your thing, PaaS is the way you do it. Using PaaS products, developers can build custom applications on top of the provider’s data serving, storage, and management system. Think of PaaS as the middle ground between SaaS and IaaS. IaaS supports PaaS, which then delivers SaaS at the easiest entry point for the everyday consumer.

While PaaS products are very easy to use and have strong abilities to customize a final user product, there may be some limitations based on the provider you use. Also, the PaaS company will be directly able to access data, which could pose a security risk if data is exposed.

Examples of PaaS products include Google App Engine, Kinsta, Heroku, and Apprenda.

IaaS: Infrastructure as a Service

IaaS products allow organizations to manage their business resources and information, such as their network, servers, and data storage, on the cloud. These products offer companies and administrators the highest level of control and can be scaled or downsized as needed.

However, the hands-on nature of an IaaS product can also be its downfall. You, as an IaaS administrator, need to be up to date on all apps and operating systems. If any data is lost, you are in charge of recovering it yourself. These may require a higher degree of technical expertise to manage and run to its optimal capacity.

Examples of IaaS products include Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and IBM Cloud.

While understanding the distinctions between SaaS, PaaS, and IaaS is crucial for leveraging the benefits of cloud computing, it's equally important to ensure a strong foundation for your business. If you're navigating the intersection of cloud computing and financial management, consider consulting with a Cloud FinOps expert from Squire.

Our experts can help align your technological advancements with sound financial strategies. Reach out to learn more about Squire’s award-winning business services.

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