“The cloud” refers to servers that are accessed over the Internet, and the software and databases that run on those servers. Cloud servers are located in data centers all over the world. By using cloud computing, users and companies don’t have to manage physical servers themselves or run software applications on their own machines.
Cloud technologies have transformed how organizations procure and manage infrastructure. With every organization today entering the cloud world, it is essential to understand the different types of services cloud computing offers. Although there are many types of cloud computing services, all these services have a few basic features and advantages in common and can be categorized into four basic cloud service offerings. Organizations can fly their business, small or big, to the cloud with these four different types of cloud computing services.

1. Infrastructure as a Service (IaaS)
The lower end of managed cloud computing services where hardware resources are provided by an external provider and managed for you. IaaS provides users access to computing resources such as networking, processing power and data storage capacity. The lower end of managed cloud computing services where hardware resources are provided by an external provider and managed for you. IaaS provides users access to computing resources such as networking, processing power and data storage capacity.
Examples of IaaS: Amazon EC2, Windows Azure, Rackspace, Google Compute Engine.
2. Platform as a Service (PaaS)
This cloud computing service is an advanced version of IaaS. Apart from just providing the IT infrastructure, PaaS also provides the computing platform and solution stack as a service. PaaS is a cloud computing service that provides developers with a framework that can be used for building custom applications. Platform as a Service lets software developers build custom applications online without having to worry about data storage, data serving, and management.
A typical Platform as a Service offering consists of –
- Hosting Solutions
- OS
- Software tools for design and development.
- Environment for server-side scripting
- DBMS
- Network Access
- Storage
- Server Software
- Support
Examples of PaaS solutions include Microsoft Azure, AWS Elastic Beanstalk, Force.com. by Salesforce, Google App Engine, Rackspace Cloud Sites, OpenShift, and Apache Stratos

3. Software as a Service (SaaS)
A special cloud computing service that incorporates both IaaS and PaaS service offerings. SaaS is a cloud computing service that provides application-level services tailored to diverse business needs such as business analytics, CRM, or marketing automation. SaaS is a cloud computing service offering that provides web-based software applications to customers on-demand. SaaS providers host a fully-functional application through a browser-based interface and make it accessible to the users through the Internet.
SaaS offerings allows the cloud to be leveraged for software architecture thereby reducing the overhead of support, maintenance, and operations as the applications run on systems belonging to the vendor. SaaS is the most familiar cloud computing service offering as users most often interact directly with SaaS applications like Netflix, Gmail, JIRA, Dropbox, or Salesforce.
Examples of SaaS solutions include SAP Business ByDesign, Zoho CRM, AppDynamics, Microsoft Office 365, Pardot Marketing Automation.
4. Functions as a Service (FaaS)
Before we understand Functions as a Service, it is important to understand the most popular tech term associated with FaaS – serverless computing. Serverless computing is a cloud computing model that takes away low-level infrastructure decisions and server management from the developers. The application architect need not deal with the allocation of resources as it is managed by the cloud service provider.
FaaS is a brand-new and very young cloud computing service acting as a game-changer for many businesses. It is a serverless computing concept that lets software developers develop applications and deploy an individual “function”, piece of business logic, or an action without maintaining a server. It increases the efficiency as developers need not to consider server operations because they are hosted externally.
Examples of FaaS include Google Cloud Function, Microsoft Azure Functions, Webtask.io, Iron.io , Open Whisk, and AWS Lambda.