Cloud models form part of cloud computing services that provide multiple IT services to different service sectors. Over 90% of businesses are using these models to avoid vendor lock-in and optimise workloads.
Software as a Service (SaaS) is the largest sector by far, but we are seeing Infrastructure as a Service (IaaS) growing. As of 2025, 95% of organisations use SaaS, and four out of five companies use two or more IaaS or Platform as a Service (PaaS) providers.
With the numbers across all three cloud models, read on to learn what is iaaS PaaS SaaS and how it may be relevant to your business model.
What Are Cloud Models?
Cloud models, sometimes called cloud computing service models, are cloud service categories that define the level of management and the type of resources users have access to. The primary and most popular models that we’ll talk about are IaaS, PaaS, and SaaS.
They’re all service models available through cloud models, but they’re different in how they work and the benefits they offer to users.
It’s a way of separating cloud services into three models users can select from based on what suits their needs.
Infrastructure as a Service
The global Infrastructure as a Service (IaaS) market is projected to grow from $190.32 billion in 2025 to $712.46 billion by 2032 (Fortune Business Insights). It’s one of the fastest-growing cloud models, with a compound annual growth rate of 20.8%.
This type of cloud model provides on-demand IT infrastructure. Examples include:
- Servers
- Storage
- Networking over the internet
Essentially, businesses rent these resources from a cloud service provider instead of buying them. This model means they don’t need to pay for the expensive physical hardware, and they can flexibly scale and reduce their capital spending.
Cloud-hosted virtual private servers are one of the most popular examples of IaaS.
Platform as a Service
PaaS gives developers the platform space they need to build, run, and manage applications. Their cloud model gives them the necessary hardware, software, and infrastructure to build and manage those applications without worrying about maintaining the app lifecycle. They don’t need to worry about operating systems, development tools, or databases. Teams then have the freedom to focus on coding and innovation instead of the costly and time-consuming infrastructure management.
The benefits are:
- Cost-effective scalability
- Affordable access to resources
- Enhanced security
- Faster time to market
Software as a Service
SaaS is a more inclusive cloud model in that it isn’t specifically designed for businesses.Â
Cloud providers host software applications and make them available as everyday subscriptions to internet users. Customers can then get access to software on the web without needing to purchase expensive packages or take up their entire small laptop RAM space with a software download.
Some of the most popular SaaS examples include:
- HubSpot
- Salesforce
- Slack
- Dropbox
- Google Workspace
- Shopify
Cloud models are the perfect solution to the once static, limited software and application solutions that we used to deal with. They’re relatively inexpensive, easy to access, and easy to manage. And with the power of cloud computing, the issues with the packages are minimal.
