In some cases, companies will use cloud-based versions of the software, in some cases they will only use the provider’s infrastructure and install their own solutions on it. If the company develops these solutions independently, then it makes sense to think about using the services of a PaaS provider. Since it is also possible to conduct development on a “bare” infrastructure that is more familiar, companies often do not see a reason for platform solutions, although they differ quite a lot in purpose, in complexity of operation, and in terms of capabilities.
IaaS: simple and scalable
The main principle of services like IaaS is that the customer gets access to certain virtual IT resources. In the general case, these are computing power, data storage capacity, and communication channels. These are rather unified, simply scalable and easily charged services that are paid depending on the volume of consumption.
By virtue of its unification, the IaaS segment tends to be clearly concentrated. In 2018, the Big Four (Amazon, Microsoft, Alibaba and Google) owned 75% of the total market, with the leader, Amazon, almost 50%. Over the past year, there are no such numbers yet, but the situation is unlikely to have changed significantly.
Largest IaaS Service Providers
| Company |
Turnover in 2018,
$ million |
Market share in 2018,
% |
Turnover in 2017,
$ million |
Market share in 2017,
% |
Annual growth,
% |
| Amazon |
15,495 |
47.8 |
12,221 |
49.4 |
26.8 |
| Microsoft |
5,038 |
15,5 |
3,130 |
12.7 |
60.9 |
| Alibaba |
2,499 |
7.7 |
1,298 |
5.3 |
92.6 |
| Google |
1,314 |
4 |
820 |
3.3 |
60,2 |
| IBM |
577 |
1.8 |
463 |
1.9 |
24.7 |
| Other |
7 519 |
23,2 |
6 768 |
27.4 |
11.1 |
| Total |
32,441 |
100 |
24,699 |
100 |
31.3 |
PaaS – a platform as a service
If IaaS provides computing infrastructure, and SaaS provides access to applications, then PaaS is a kind of intermediate option with an emphasis on software development. Platform as a Service service includes operating systems, middleware and special solutions to optimize the process of creating Internet applications.
PaaS is considered the most complex model for deploying public cloud services, therefore, the operators of such services are, as a rule, specialized companies with in-depth expertise both in the field of cloud platforms and application software.
This market, unlike the IaaS market, is extremely fragmented. According to Gartner, in 21 segments of the PaaS market, which analysts of this company single out, there are more than 360 providers offering more than 550 solutions – and these are only service providers that are “noticeable” to Gartner. The fragmentation of the market is aggravated by the fact that 90% of suppliers work in only one segment and none in all 21.
PaaS provides three important functions. Firstly, integration with basic web services and databases, which makes it easier for developers to work. Secondly, it’s easy to configure software, applications can be easily adapted to meet business needs with built-in testing, development and deployment tools. And thirdly, PaaS provides collaboration tools, a unified development platform that allows multiple users to work together on various projects.
So what is the difference?
IaaS services provide maximum control over virtual computing resources. However, the freedom to dispose of them requires the user to have knowledge and skills regarding infrastructure management, monitoring its operation, and ensuring cybersecurity.
PaaS offers a greater depth of workflow automation, optimizes application development, providing a unified approach for heterogeneous data sources and computing resources, and optimizes costs through the use of agile development methodology.
The choice between IaaS and PaaS depends on the specific needs of the business, on what is more important for it – scalability or flexibility, control or standardization
Its disadvantages include less flexibility compared to IaaS, since the platform provides, as a rule, a set of specialized tools for developing applications and working with data.
IaaS or PaaS – what to choose?
The process of choosing between IaaS and PaaS begins with an understanding of the needs of the business. The company must ask itself a number of key questions. For example, how mature is the business, is there a deep understanding of the need for cloud solutions? What is more important: full control or maximum standardization? Scalability or agile development capabilities?
In general, if a business needs full control over the cloud, has a qualified team of IT specialists, and is quite mature in terms of understanding and applying IT infrastructures, then IaaS will be the best choice. But, in the case when the company (or its department) is focused primarily on application development and cost optimization for this process, then it is worth paying attention to PaaS.
