Cloud computing

Cloud computing is the delivery of on-demand computing resources, including servers, storage, databases and software, over the internet. Instead of buying and maintaining physical infrastructure, organisations rent these resources from a provider and pay for what they consume, scaling capacity up or down as needs change.

The three service models: IaaS, PaaS and SaaS

Cloud services are commonly grouped into three models that differ by how much of the technology stack the provider manages versus the customer. Choosing the right model depends on how much control and how much operational responsibility a business wants to keep in-house.

  • IaaS (Infrastructure as a Service): the provider supplies virtualised compute, storage and networking. The customer manages the operating system, runtime and applications. It offers the most control and is suited to teams that need to configure their own environment.
  • PaaS (Platform as a Service): the provider manages the underlying infrastructure plus the runtime, operating system and middleware. The customer focuses solely on building and deploying applications, which shortens development cycles.
  • SaaS (Software as a Service): the provider delivers a complete, ready-to-use application over the internet, typically through a browser. The customer manages only its data and user accounts, with no installation or maintenance.

The three models also differ by deployment context. Public cloud shares infrastructure across many tenants, private cloud dedicates it to a single organisation, and hybrid cloud combines both to keep sensitive workloads in-house while bursting to public capacity when needed.

Comparing the cloud service models

CriterionIaaSPaaSSaaS
Provider managesHardware, virtualisation, networkingInfrastructure plus runtime and middlewareEntire application stack
Customer managesOS, runtime, applications, dataApplications and dataData and user accounts only
Level of controlHighMediumLow
Typical userSystem administrators, infrastructure teamsDevelopersEnd users and business teams
Example useHosting custom virtual machinesDeploying a business applicationUsing an email or CRM tool in the browser

A single organisation often combines all three: a SaaS tool for email, a PaaS environment to deploy an internal application, and IaaS for workloads that require granular configuration.

Why cloud computing matters for SMEs

For small and mid-sized businesses, cloud computing removes the need for large upfront investment in servers and data-centre space. Resources are billed on consumption, which converts capital expenditure into predictable operating costs and frees capital for the core business.

  • Elastic scalability: capacity can be increased during peak periods and reduced afterwards, so a business pays for what it actually uses rather than for permanent over-provisioning.
  • Faster time to market: environments can be provisioned in minutes, letting teams launch and iterate on applications without procurement delays.
  • Lower maintenance burden: the provider handles hardware upkeep, patching and physical security, reducing the need for a large in-house infrastructure team.
  • Accessibility and continuity: resources are reachable from any internet connection, supporting remote work and built-in redundancy across multiple locations.

The trade-offs to plan for are dependence on internet connectivity, recurring subscription costs that need monitoring, and a shared responsibility model where the provider secures the infrastructure but the customer remains responsible for its own data, access management and configuration.

Questions fréquentes

The three models differ by how much the provider manages. IaaS delivers raw infrastructure such as compute and storage while the customer manages the operating system and applications. PaaS adds the runtime and middleware so developers only handle their code. SaaS delivers a complete ready-to-use application accessed through a browser.

Cloud providers operate under a shared responsibility model. They secure the underlying infrastructure, including physical data centres and the network, while the customer remains responsible for its own data, user access and configuration. With proper access controls and correct configuration, cloud platforms can offer stronger security than an unmanaged on-premises setup.

Public cloud shares infrastructure among many customers and is managed entirely by the provider. Private cloud dedicates infrastructure to a single organisation for greater control and isolation. Hybrid cloud combines both, allowing a business to keep sensitive workloads private while using public cloud capacity for variable or less critical demand.

Most cloud services use a pay-as-you-go model, billing for the resources actually consumed, such as compute hours, storage volume or number of users. This avoids large upfront hardware purchases and turns infrastructure into a predictable operating cost. Because usage-based billing can grow with consumption, ongoing monitoring is recommended to control spend.

Building a custom software project? We design bespoke software aligned with your roadmap.

See our custom software expertise