Key Differences Between IaaS and SaaS and How to Pick One for Your Business?


The continuous merging of business and technology has uplifted the popularity of IaaS and SaaS cloud computing models. These cloud solutions not only eliminate the need for on-premise hosting but also drops the requirement of an IT staff to address technical or software issues. Businesses that wish to remain on the cutting-edge rely on these models to offer their clients greater flexibility and options.

Niti Pawar  | 
April 28, 2022

Key Differences Between IaaS and SaaS and How to Pick One for Your Business?

With numerous business ideas in mind and several services to offer via cloud technology, startups are emerging from all over the world to explore multiple cloud computing models. And now that cloud has become a hot topic, especially for entrepreneurs who wish to switch their base to the cloud, it is important to understand some basic yet major differences and advantages of these cloud models. Additionally, as per a detailed report published by Research Dive, the global retail cloud market is predicted to generate a revenue of $93,360.0 million and grow at a stable 21.4% CAGR during the 2020-2027 forecast timeframe.

Now that we know these cloud computing models are here to dominate the business world, let’s explore infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) models in this blog section.

Infrastructure-as-a-Service (IaaS)

Infrastructure-as-a-service cloud computing model is made of scalable and automated compute resources and is a full-service platform for accessing and monitoring storage, computers, networking, etc. IaaS solution provides resources to businesses as per the demand instead of purchasing the complete hardware.

IaaS offers cloud computing infrastructure like operating systems, servers, storage, and network via virtualization technology. The cloud servers are usually provided to the organizations via an API or a dashboard that allows them to monitor the complete infrastructure.

While IaaS providers are responsible for managing networking, hard drives, servers, virtualization, and storage, IaaS clients are responsible for managing OSes, applications, runtime, data, and middleware. Some renowned IaaS providers are AWS EC2, Google Compute Engine (GCE), Rackspace, and Microsoft Azure.

Since Microsoft has always been at the forefront of delivering digital tools and services for organizations, Westpac, an Australian bank and financial services provider, recently partnered with the IaaS provider to boost its digital and hybrid multi-cloud strategy and respond to customer needs immediately using Azure AI.

Software-as-a-Service (SaaS)

Software-as-a-Service cloud computing model offers the most widely used application services to businesses present in the cloud market. This solution utilizes the internet to provide applications to the clients, which are managed by a third-party vendor. Since most SaaS applications easily run on web browsers, they don’t need any installations or downloads from the customer side.

SaaS uses a web delivery model that eliminates the need for an IT staff and downloading of multiple applications on every computer. SaaS vendors manage all the technical issues like servers, data, middleware, and storage to offer complete support to the business.

Some leading SaaS providers are Google Workspace, Salesforce, Dropbox, BigCommerce, Zendesk, MailChimp, and Hubspot. Moreover, Apple recently announced its partnership with Google Workspace to make cloud identity management easier for organizations with the new Managed Apple ID that eliminates the need for an IT department.

How to Choose One for Your Business?

To sum it up, IaaS provides high flexibility in the case of hosting custom-built applications along with a general data center for data storage. Meanwhile, SaaS provides ready-to-use solutions as per a specific business’s need, like email or websites that are made available via third-party vendors.

If you are a startup company and need to launch your e-commerce quickly and don’t have much time for addressing software or server issues, you should consider adopting a SaaS model. Moreover, this cloud computing solution also offers you both web and mobile access. And if you wish to skip the tedious part of buying hardware and software, then IaaS is an ideal cloud solution for your business.





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