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IaaS, PaaS and SaaS Explained with Real Examples

Basics4 min

In short

IaaS gives you virtual hardware that you configure yourself, PaaS gives you a ready platform where you just deploy code, and SaaS gives you finished software you use in a browser.

The short answer

The three models differ in how much of the work the provider takes on and how much stays with you. A handy analogy is food:

  • IaaS: you rent a kitchen with a stove and cookware, but you do the cooking.
  • PaaS: you get a ready kitchen with a sous-chef; you bring the recipe, the rest is handled.
  • SaaS: you go to a restaurant and simply order.

Who manages what

LayerOwn serverIaaSPaaSSaaS
Data and accessYouYouYouYou
Application (code)YouYouYouProvider
Runtime, librariesYouYouProviderProvider
Operating systemYouYouProviderProvider
Virtualization, network, storageYouProviderProviderProvider
Physical servers, data centerYouProviderProviderProvider

Note the first row: you are always responsible for your data and access rights, in every model. This is known as the shared responsibility model.

IaaS: infrastructure as a service

You get virtual machines, disks, networks and load balancers. You install the OS, configure the environment, deploy the application and maintain everything.

Examples: Amazon EC2, Google Compute Engine, Azure Virtual Machines, and VPS plans from hosting providers.

Choose it when:

  • you need full control over the environment and network;
  • your stack is unusual or you have special security requirements;
  • you have a DevOps engineer or system administrator.

Impact on team and budget: the most flexible model, but also the most manual work: updates, monitoring, backups, scaling. Your costs include not only the resource bill but also specialists' time.

PaaS: platform as a service

You push code, and the platform builds, runs, scales and patches the environment. PaaS often includes managed databases, queues and logging.

Examples: Heroku, Google App Engine, Azure App Service, AWS Elastic Beanstalk, Vercel, Render.

Choose it when:

  • you are a small team that wants to work on the product, not on servers;
  • your stack is standard: Node.js, Python, PHP, Go, Java;
  • shipping updates quickly matters.

Impact on team and budget: less administration and a faster launch. In exchange you get less control, platform limits and a risk of vendor lock-in. As load grows, PaaS can cost more than equivalent infrastructure on IaaS, so review the bill periodically.

SaaS: software as a service

A finished product you use in a browser or app on a subscription. Nothing to install or maintain.

Examples: Google Workspace, Microsoft 365, Slack, Notion, Salesforce, amoCRM, cloud Bitrix24.

Choose it when:

  • the task is standard: email, documents, CRM, accounting, task tracking;
  • building your own makes no sense because an existing product covers your needs.

Impact on team and budget: minimal technical work and a predictable subscription. The limits: customization only within what the product allows, and your data lives with the provider. Always check whether you can export your data if you decide to leave.

How to choose

  1. Is it a standard business task? Look for SaaS first.
  2. Building your own product or service? Start with PaaS if the stack is standard and the team is small.
  3. Need special configuration, network control or cost optimization at high load? Move to IaaS.

In practice companies mix models: CRM on SaaS, the website on PaaS, heavy data processing on IaaS.

Common mistakes

  • Assuming security in the cloud is the provider's job. Misconfigured access rights are your responsibility.
  • Choosing IaaS with nobody to run it.
  • Building from scratch what SaaS already offers, spending budget on features that are not unique.
  • Not planning an exit from PaaS or SaaS: data export and code portability.

FAQ

Serverless (for example AWS Lambda or Google Cloud Functions) is usually seen as an evolution of PaaS: you write functions and the provider fully manages execution and scaling. It is sometimes called a separate model, FaaS (Function as a Service).

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