Top 5 Fascinating Types Of Cloud Service Models – The Operating Model Study




May 28, 2020

Last updated: April 12, 2024

Cloud Service Models

Cloud Service Models – Deep Dive Into The Behaviors & Benefits

The world is changing at a breakneck pace, and businesses are under tremendous pressure to maintain a reliable and cost-effective IT infrastructure in order to keep up. But thanks to Cloud service models – Saas, IaaS, Paas, Xaas & Faas, businesses may now move beyond on-premise IT infrastructure for improved processing and storage capacity. 

Over the last few years, the cloud has remained to be an integral component of overall business operations and software development. It has unfolded several possibilities for businesses of all sizes and even for individual users to gain easy access to data storage and processing capabilities.

Right from powering web app development, video streaming, CRM systems, mobile banking, and big data analyses, the cloud services model is helping businesses to empower and focus on innovation.

What Is Cloud Computing?

Cloud computing is a technology that allows users to access and utilize computing resources over the internet on a pay-as-you-go basis. Instead of relying on local servers or personal computers, cloud computing relies on a network of remote servers hosted on the internet to store, manage, and process data and applications.

Cloud Computing in short is the process of storing and accessing data, software, programs, or services over the internet regardless of any physical hard drives, servers, or mainframes at any instant of time. Cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, provide computing resources to users and organizations all over the world. The organizations make use of the cloud service models to flexibly act based on their dynamic needs and to deliver automated and on-demand access to the resources at a seamless and faster rate.

To relate it with real-time, the one common factor that Netflix, Slack, Uber, and Dropbox accounts hold is the Cloud. It is the Cloud computing service models that appear to be a way to send messages, stream shows, book rides, share photos, and many more at any time from any internet-enabled device.

Cloud computing is hence without a doubt the way to and of the future! Missing out on it can significantly impede a company’s progress and ability to perform. But, before we delve into the crux of Cloud Computing deployment models, let’s first define the main idea of cloud computing.

Characteristics Of Service Model of Cloud Computing

Here are some of the key characteristics of cloud service models:

  • On-demand self-service: Users can provision and manage cloud resources without having to interact with the cloud provider.
  • Broad network access: Cloud services are accessible from anywhere over the internet using a variety of devices.
  • Rapid elasticity: Users can quickly scale cloud resources up or down to meet their changing needs.
  • Measured service: Cloud providers meter the amount of resources used by each customer, allowing for pay-as-you-go pricing.
  • Multi-tenancy: Cloud resources are shared among multiple customers, which helps to reduce costs .

Why Is Cloud Computing Important For A Business?

Cloud computing is important for businesses for several reasons, offering a wide range of benefits that contribute to efficiency, flexibility, and overall competitiveness. Here are some key reasons why cloud computing is important for businesses:

Cost Efficiency:

Cloud computing allows businesses to reduce upfront capital expenditures by adopting a pay-as-you-go model, where they only pay for the resources they consume. This eliminates the need for large initial investments in hardware and infrastructure.


Cloud services provide businesses with the ability to scale resources up or down based on demand. This scalability ensures that businesses can easily adapt to changing workloads, optimizing performance and resource utilization.

Accessibility and Flexibility:

Cloud computing enables employees to access data and applications from anywhere with an internet connection. This flexibility in access promotes remote work, collaboration, and improved overall productivity.


Reputable cloud service providers invest heavily in security measures, including encryption, access controls, and regular audits. This professional approach to security often surpasses what many businesses can achieve on their own, enhancing data protection.

Business Continuity and Disaster Recovery:

Cloud services offer robust backup and recovery options, ensuring data redundancy and minimizing the risk of data loss. In the event of a hardware failure or disaster, businesses can quickly recover their data and maintain continuity in operations.

Cloud Computing Deployment Models & Cloud Service Models – An Extensive Study

types of cloud service models

Cloud service models over these years have grown at an exponential rate around the world. In 2020, the global cloud computing industry was estimated to be worth USD 274.79 billion. As an astounding factor, it is predicted to expand at a compound annual growth rate (CAGR) of 19.1% from 2021 to 2028. 

Having said that, let us see the different types of cloud computing service model types and their functionalities. Generally, cloud computing offerings and deployment models are classified as public, private, hybrid, and multi-cloud.

Public Cloud

The public cloud computing model generally remains open for use by the general public or by large industry groups. It operates on the multitenant model and hence multiple users from different organizations can access the service at the same time. In this model, the third-party cloud service providers (like Alibaba, Amazon, Google, and Microsoft) hold on to the ownership and provide maintenance and management for the users.

The on-demand capability allows dynamic resource allocation based on users’ requirements and the users get to access the cloud services via the internet. The public model is normally used for less-integral applications or operations and typically mounts for single users and small and medium-sized businesses. Simply put, the public cloud model can be stated as Shared, On-Demand Infrastructure, Resources & Third-party Providers.

Private Cloud

In the private cloud computing model, businesses get to operate with their cloud computing infrastructure and the users get to access the resources on-demand over a private network connection set up by their company. On being private within the organizations, this cloud model allows the running of their resources and infrastructure in a more secure and controlled manner. Usually, these models are used for sensitive data or applications, and for operations that require a high level of control and security. 

Moreover, the cloud gets shared only when the owner chooses to share the same. The sectors like healthcare organizations, government agencies, financial institutions, and telecommunication companies make use of this model in a wider range. Nevertheless, in this model, the organization is the one responsible for paying for the acquisition, deployment, and maintenance costs and the resources can be allocated dynamically based on users’ demands.

Simply put, the Private Cloud model can be stated as Dedicated, On-Demand Infrastructure, and Resources & Owned Data Center.

Hybrid Cloud

The hybrid cloud operating model results from a combination of both public and private cloud models and the combinations occur between the dependable nature of the private cloud and the on-demand capacity of the public cloud. The consistency of the hybrid cloud operating model is made possible through the advantage of the automated, programmable, on-demand public cloud models.

The model drives the value from the consistent underlying infrastructure, consistent operations and stands ideal for businesses that provide services or offer products. Simply put, the Hybrid Cloud model can be stated as Public Cloud & Private Cloud & Consistent Infrastructure and Operations.

Multi-Cloud Computing

Multi-cloud computing makes its space when companies can’t withstand the usage of a single public cloud and requires Google Cloud or Amazon Web Services (AWS) based on their operations needs and developers’ needs. The model exhibits flexibility to the organizations in choosing the cloud model that best fits the application or business needs. And hence they tend to go with the multi-cloud route, often with the inclusion of the hybrid cloud.

The connective products and services that multi-cloud computing owns have made companies embrace this everywhere while sticking with consistent infrastructure and operations. The Multi-Cloud model can hence be simply stated as Any Combination of Native Public Clouds and Private Clouds.

Did You Know?
The three sectors that plan to spend the most on cloud computing services are manufacturing ($19.7 billion), professional services ($18.1 billion), and banking ($16.7 billion).

Business Advantages Of Cloud Computing Service Models

You must be wondering! Why should I use the cloud services model for my business, and what can it do to expand the scope of my operations? The benefits of cloud adoption significantly exceed the disadvantages, which is why you should consider it in the first place. 

The users get to customize and arrange the cloud computing models resources according to their needs and demands. Broad network access allows users to have user-friendly access and cloud-dependent capabilities over any platform. Cloud service models, being a multi-tenant platform, aids multiple users to use cloud service models and do effective resource pooling.

Cloud Computing service model types also remain highly measured on accurate users’ usage or consumption levels and details for both users and providers. It is also a flexible option for companies who wish to quickly upgrade or downgrade storage options or move from one as-a-service choice to another without needing to make a substantial change to their current IT infrastructure. 

Cloud computing is a great euphemism for centralization of computer services under one server. – Evgeny Morozov

If you are looking forward to getting started with cloud computing, look for top cloud service providers who follow certified security measures, offer a wide range of features, and have a cost-effective pricing strategy. You’ll also need an experienced custom software development company and team to assist you in making an informed decision and integrating the solution into your operations.

Closer Look At The Types Of Cloud Service Models

Cloud computing is a broad word that refers to the supply of data storage, processing, analytics, and other services over the internet rather than through local hardware. Understanding various cloud service models, analyzing your needs, and determining how the chosen model can offer you a planned set of workflows are all the necessary steps in deciding between them.

There are normally 3 cloud service models to compare, Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Each of these cloud services models possesses its benefits, as well as variances. Now, for any organization to know how to make the best choice, it is necessary to understand the differences between SaaS, PaaS, and IaaS.

service models of cloud computing

Software as a Service (SaaS)

SaaS is the most widely used type of cloud service model. In short, it is a way of delivering applications over the Internet as a service. The services over the internet make accessibility of the same more convenient thereby making the installation and maintenance of complex software easier.

This could hence indeed help service providers manage, maintain, and have control over the cloud infrastructure on both hardware and software as well as its security. SaaS is more user-friendly in nature and can be easily adapted. Some SaaS examples include Gmail, Google Apps, Salesforce, and Netflix.

SaaS Benefits:

– Multitenant Architecture

– Easy Customization

– Better Access

– Automatic Updates

– High Usage Rates

Platform as a Service (PaaS)

Platform as a service is where the cloud service providers deliver a platform to clients, enabling them to develop, run, test, manage, and host their applications. It also provides users with computing resources as well as tools and software to develop their apps, including middleware, database management, and the operating system. Similar to SaaS, even the PaaS providers manage, maintain, and have control over the cloud infrastructure as well as its security.

PaaS being mostly used by application developers requires certain technical skills to operate the same. Popular examples of PaaS include AWS Elastic Beanstalk, Windows Azure, Google App Engine, and OpenShift.

PaaS Benefits:

– Increased Agility

– Highly Scalable

– Faster Time to Market

– Cost-effective development of apps

– Centralized and simplified app management

Infrastructure as a Service (IaaS)

Infrastructure as a Service (IaaS) is made of highly scalable and automated computing resources. Here, businesses can opt or purchase the computing resources on-demand and when it is required. This service type among all the cloud service models is completely self-driven for accessing and monitoring computers, networking, storage, and other services. Unlike SaaS and PaaS, IaaS users have control over the cloud infrastructure as well as its security.

IaaS is hence highly used by technical professionals like that of infrastructure and network architects. Common examples of IaaS include DigitalOcean, Amazon Web Services (AWS), Microsoft Azure, and Google Compute Engine (GCE).

IaaS Benefits:

– More rapid innovation

– Resources are available as a service

– Increased scalability, dynamic and flexible

– Reduced startup and maintenance expenses

– Organization retain complete control of the infrastructure

cloud computing service model types

Anything as a Service (XaaS)

Anything as a Service ( XaaS) stands as a single term denoting the extensive variety of services and applications emerging for users to access over the Internet. Businesses under these systems get to innovate faster, extend their customer relationships, and nurture the sale beyond the initial product purchase by using the data generated over the cloud services model.

Anything-as-a-service derives (XaaS) refers to the delivery of anything as a service right from software-as-a-service (SaaS) to storage-as-a-service, desktop-as-a-service (DaaS), disaster recovery-as-a-service (DRaaS), network-as-a-service (NaaS), infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS), and even emerging services such as marketing-as-a-service, healthcare-as-a-service and more.

XaaS Benefits:

– Allows the shift of capital expenses to operating expenses

– Quick launch of new apps and business processes

– Creates space for new projects

Functions as a Service (FaaS)

Developers can split down their software’s functionality into separate features and edit them one by one in FaaS. This extra degree of abstraction makes app creation and maintenance easier. Software engineers can isolate a single feature and modify it without affecting the rest of the program’s operation. Especially for complicated projects, narrowing the work scope down to functional code blocks makes development much easier and faster. 

In Functions as a service, developers are only responsible for the code. Access to the app container, language runtime, operating system, and hardware will be provided by the provider, resulting in a universal virtual development environment. Common examples of FaaS include AWS Lambda, Azure functions and IBM OpenWhisk. 

FaaS Benefits:

– Improved developer velocity

– Built-in scalability

– Cost efficiency

– Simplified code 

– Minimal administrative effort

End Lines:

The expanding use of cloud services reflects the quickly changing business landscape and the reports show how the cloud will become the key computing resource in the future for businesses. As a result, your company should swiftly embrace a cloud platform to take benefit of its numerous advantages and, as a result, help you develop your business. Over the last five years, cloud computing models have been one of the fastest-growing businesses, and this trend is set to continue into the next decade. With leading cloud computing firms investing in the technology, such as Amazon, Microsoft, Google, and IBM, it’s certain that the service models of cloud computing will become more innovative with each new release.

But, which cloud model would be the most appropriate for delivering the results you require? The information regarding the main 3 cloud service models – SaaS, IaaS, and PaaS offered above may have given you a glimpse into the nature of these cloud platforms. Each one is unique, and it is up to you to assess your business needs and choose the one that best suits your requirements. To recap, if your company needs cloud-based software such as email, CRM, or productivity tools, SaaS is a good fit. If you need a complete virtual computing platform with lots of resources, IaaS is the way to go. If you need a platform for developing and testing your software and applications, PaaS is the way to go.

cloud computing deployment models

The tried-and-true approach to automating your contacts with clients and team members is to integrate noisy solutions into your website and organizational methods, which results in huge efficiency gains.

To conclude, the cloud is a broad concept that covers a lot of online territories and never fails to be an exciting topic right from small businesses to global enterprises. The service models of cloud computing have completely revolutionized the way IT departments manage and deploy infrastructure. When considering switching your business to the cloud, either for application or for infrastructure deployment, it is more important to understand the advantages and differences of the various cloud services. Whether it’s SaaS, PaaS, or IaaS, there are always suitable cloud service models to virtually fulfill all business needs. 

Frequently Asked Questions On Cloud Service Models

What Are Cloud Service Models?

Cloud Service models are those which enable pervasive, convenient and on-demand network access to a shared pool of resources. 

What Are The Three Main Cloud Service Models?

IaaS, PaaS and SaaS are the three most popular types of cloud service models. They are also referred to as cloud service offerings or cloud service models. 

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