Payments 101

What is an IaaS company? Everything you need to know

In today’s digital era, businesses are constantly looking for solutions that can help streamline operations, increase efficiency, and reduce costs. One of the ways companies achieve this is by leveraging cloud computing services. Among the various cloud computing models, Infrastructure-as-a-Service (IaaS) has gained significant popularity. This article explore the world of IaaS, covering what it is, its benefits, and how it compares to other cloud computing models.

What is IaaS in simple terms?

Infrastructure as a Service (IaaS) is a form of cloud computing that provides virtualized physical computing resources over the Internet. IaaS is one of the three main categories of cloud services, alongside Platform as a Service (PaaS) and Software as a Service (SaaS). With IaaS, businesses can rent IT infrastructure—servers, virtual machines, storage, networks, and operating systems—from a cloud provider on a pay-as-you-go basis.

What falls under IaaS?

IaaS provides a wide array of resources and services that cater to various business needs. Under the umbrella of IaaS, businesses have access to:

  • Computing power: Virtual machines with customizable configurations.
  • Storage: Scalable storage solutions.
  • Networking: Ability to manage networks and connect virtual machines.
  • Load balancers: Distribute incoming network traffic across multiple servers.
  • Virtualization: Create and manage virtual machines.
  • Operating systems: Choice of operating systems.

These components work together to provide a comprehensive, scalable, and flexible infrastructure solution.

IaaS examples

To further understand IaaS, it is essential to look at some practical IaaS examples. These examples showcase the diversity and capabilities of IaaS providers.

  • Amazon Web Services (AWS): AWS offers a vast range of IaaS products, including EC2 (Elastic Compute Cloud), S3 (Simple Storage Service), and VPC (Virtual Private Cloud).
  • Microsoft Azure: Provides virtual machines, virtual networks, and a variety of storage solutions.
  • Google Cloud Platform (GCP): Offers computing resources, storage options, and networking capabilities.

These providers have robust ecosystems that cater to a wide array of business needs, making them some of the most popular choices in the market.

Is Amazon an IaaS?

When we talk about Amazon in the context of cloud computing, we primarily refer to Amazon Web Services (AWS), which is Amazon’s cloud computing division. AWS is widely recognized as a leading provider of Infrastructure as a Service (IaaS), offering a robust and comprehensive range of services that fall under this category.

IaaS provides hardware resources over the internet, including computing power, storage, and networking capabilities. AWS excels in this area, delivering a vast array of services and solutions to meet the varied needs of businesses and developers. From virtual servers (EC2) to scalable storage options (S3), AWS provides the essential building blocks required to run applications, manage workloads, and store data in the cloud.

Amazon’s EC2 service is one of the most notable examples of IaaS, offering resizable compute capacity in the cloud. It allows users to run virtual servers, configure security and networking, and manage storage. Similarly, Amazon S3 provides scalable object storage, suitable for a wide range of applications, from backup and restore to content distribution.

Is Azure a PaaS or IaaS?

Microsoft Azure stands out as a comprehensive cloud platform offering a wide variety of services spanning across IaaS and Platform as a Service (PaaS). This breadth of offerings highlights Azure’s versatility, catering to various business requirements and use cases.

On the IaaS front, Azure provides a suite of services that give users direct access to virtual machines, virtual networks, and other fundamental computing resources. These IaaS solutions are ideal for businesses looking for flexibility and control over their computing environment, similar to what they would have with on-premises data centers, but with the added benefits of cloud scalability and cost-efficiency.

By providing both IaaS and PaaS solutions, Azure ensures that businesses can choose the level of control and management that best fits their needs. Whether they need raw computing resources or a platform to streamline application development, Azure has the services and tools to support them.

Is Amazon EC2 SaaS or IaaS?

Amazon EC2 stands prominently as an IaaS offering, providing resizable capacity in the cloud. It enables users to run virtual servers, configure security and networking, and manage storage. EC2 encapsulates the essence of IaaS, delivering fundamental computing resources over the internet.

With Amazon EC2, users can take advantage of the scalability and flexibility of the cloud, deploying and scaling applications as needed. The service eliminates the need for upfront investments in physical hardware, providing a cost-effective solution that can be scaled up or down based on demand.

It’s important to clarify that EC2 is not a Software as a Service (SaaS) offering. SaaS typically refers to cloud-based software applications that are provided over the internet, ready to use without the need for installation or maintenance on the user’s part. EC2, on the other hand, provides the infrastructure that enables users to run their own applications, offering greater flexibility and control but also requiring more management and configuration.

In summary, Amazon EC2 exemplifies what IaaS is all about: providing scalable, flexible, and cost-effective computing resources in the cloud. It stands as a foundational service within AWS’s extensive cloud computing ecosystem, supporting a wide range of use cases and applications.

Is AWS an Example of IaaS or PaaS?

Amazon Web Services (AWS) provides a mix of both IaaS and Platform as a Service (PaaS) offerings. Services like EC2 and S3 are considered IaaS since they offer essential computing and storage resources. On the other hand, AWS also offers PaaS solutions like AWS Elastic Beanstalk, which simplifies the deployment and scaling of applications, allowing developers to focus on code rather than the underlying infrastructure.

IaaS, PaaS, SaaS

Understanding the differences between IaaS, PaaS, and Software as a Service (SaaS) is crucial in choosing the right cloud service for your needs.

  • IaaS: Provides the basic infrastructure services.
  • PaaS: Offers a platform allowing customers to develop, run, and manage applications without dealing with the underlying infrastructure.
  • SaaS: Delivers software applications over the internet on a subscription basis.

Each of these models provides a different level of control, flexibility, and management, catering to various business needs.

What is PaaS?

Platform as a Service (PaaS) is a cloud computing model that provides a platform allowing customers to develop, run, and manage applications without dealing with the complexity of building and maintaining the underlying infrastructure. PaaS is ideal for developers who want to focus on writing code without worrying about the operational aspects of server management, storage, and networking.

AWS IaaS services list

Amazon Web Services (AWS) provides a comprehensive list of IaaS services, catering to a wide array of computing needs. Some of the key services include:

  • EC2: Scalable virtual servers.
  • S3: Object storage service.
  • VPC: Virtual private cloud for network customization.
  • EBS: Block storage volumes for persistent data storage.
  • RDS: Relational database service.
  • Lambda: Serverless computing service.

These services represent just a fraction of what AWS offers in terms of infrastructure capabilities.

Platform as a Service

Platform as a Service (PaaS) stands out as a cloud computing model that bridges the gap between IaaS and SaaS. It provides a platform allowing developers to build, deploy, and manage applications with greater ease and efficiency. PaaS delivers a set of tools and services designed to make coding and deploying applications much quicker and more efficient.

IaaS vs PaaS

When it comes to IaaS vs. PaaS, the main difference lies in the level of control and flexibility.

  • IaaS provides the raw building blocks for IT. Users have direct access to computing, storage, and networking resources, granting them a high level of control and customization.
  • PaaS abstracts and automates many of the underlying infrastructure details, focusing more on the deployment and management of applications.

Businesses choose between IaaS and PaaS based on their specific needs, required control levels, and technical expertise.

IaaS vs SaaS

Comparing IaaS vs SaaS, these models cater to different needs and offer varied levels of control.

  • IaaS provides the fundamental building blocks for computing, allowing users to run any software, including operating systems and applications.
  • SaaS, on the other hand, delivers software applications over the internet, ready to use without the need for installation or maintenance.

IaaS offers more flexibility and control, while SaaS simplifies the user experience at the cost of customization.

In conclusion, understanding what an IaaS company is and how it functions is crucial for businesses looking to leverage cloud computing services. IaaS provides the essential infrastructure services required to run applications, store data, and manage workloads over the internet. With the flexibility, scalability, and cost-efficiency it offers, IaaS has become a go-to solution for businesses aiming to stay competitive in the digital landscape. Whether you are a small startup or a large enterprise, IaaS provides the tools and resources needed to drive innovation and growth.

An $8.1 trillion market eGuide


Embarking on the journey of payment orchestration doesn’t have to be daunting, and Gr4vy is here to light the way with our expertly crafted eGuide. Designed with merchants in mind, this invaluable resource provides a thorough introduction to payment orchestration, equipping you with the knowledge to navigate this complex landscape with confidence. Whether you’re considering building a payment orchestration layer in-house or exploring the avenues of outsourcing, our eGuide has got you covered with insights from industry experts at RPGC, as well as various payment orchestration providers.

We understand that every business has unique needs and goals, and that’s why our eGuide delves deep into the options available to you, including the critical decision between SaaS and IaaS. With the potential of tapping into an $8.1 trillion market, making the right choice has never been more crucial. So, don’t leave your success to chance; download our eGuide today and take the first step towards mastering the art of payment orchestration. Your journey toward efficiency, cost-effectiveness, and enhanced customer satisfaction starts here with Gr4vy. 

Gr4vy

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