CLOUD COMPUTING: THE SERVICE MODELS AND INDUSTRY STATISTICS
“Ultimately, the cloud is the latest example of Schumpeterian creative destruction: creating wealth for those who exploit it; and leading to the demise of those that don’t.” - Joe Weinman, Senior VP at Telx and author of Cloudonomics: The Business Value of Cloud Computing
In my previous blog “Cloud Computing: The Preface” we discussed the definition and characteristics of Cloud Computing. In this article let’s get into more details of the service models.
Though service-oriented architecture advocates "everything as a service" (with the acronyms EaaS or XaaS) cloud-computing providers offer their "services" according to different models, which happen to form a stack: infrastructure-, platform- and software-as-a-service.
Infrastructure as a service (IaaS)
Infrastructure as a Service (IaaS) is a form of cloud computing that provides virtualized computing resources over the Internet. In an IaaS model, a third-party provider hosts hardware, software, servers, storage and other infrastructure components on behalf of its users. IaaS providers also host users' applications and handle tasks including system maintenance, backup and resiliency planning.
IaaS platforms offer highly scalable resources that can be adjusted on-demand. This makes IaaS well suited for workloads that are temporary, experimental or change unexpectedly.
Other characteristics of IaaS environments include the automation of administrative tasks, dynamic scaling, desktop virtualization and policy-based services.
IaaS customers pay on a per-use basis, typically by the hour, week or month. Some providers also charge customers based on the amount of virtual machine space they use. This pay-as-you-go model eliminates the capital expense of deploying in-house hardware and software. However, users should monitor their IaaS environments closely to avoid being charged for unauthorized services.
In 2016, spending on public cloud Infrastructure as a Service hardware and software is forecast to reach $38B, growing to $173B in 2026. SaaS and PaaS portion of cloud hardware and infrastructure software spending are projected to reach $12B in 2016, growing to $55B in 2026. The following graphic provides an overview of spending on public cloud infrastructure worldwide from 2015 to 2026.
Platform as a service (PaaS)
Platform as a service (PaaS) is a cloud computing model that delivers applications over the Internet. In a PaaS model, a cloud provider delivers hardware and software tools - usually those needed for application development - to its users as a service. A PaaS provider hosts the hardware and software on its own infrastructure. As a result, PaaS frees users from having to install in-house hardware and software to develop or run a new application.
PaaS does not typically replace a business' entire infrastructure. Instead, a business relies on PaaS providers for key services, such as Java development or application hosting. For example, deploying a typical business tool locally might require an IT team to buy and install hardware, operating systems, middleware (such as databases, Web servers and so on) the actual application, define user access or security, and then add the application to existing systems management or application performance monitoring (APM) tools. IT teams must then maintain all of these resources over time. A PaaS provider, however, supports all the underlying computing and software; users only need to log in and start using the platform – usually through a Web browser interface.
Most PaaS platforms are geared toward software development, and they offer developers several advantages. For example, PaaS allows developers to frequently change or upgrade operating system features. It also helps development teams collaborate on projects.
Software as a service (SaaS)
Software as a service (SaaS) is a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet.
SaaS removes the need for organizations to install and run applications on their own computers or in their own data centers. This eliminates the expense of hardware acquisition, provisioning and maintenance, as well as software licensing, installation and support. Other benefits of the SaaS model include:
Flexible payments: Rather than purchasing software to install, or additional hardware to support it, customers subscribe to a SaaS offering. Generally, they pay for this service on a monthly basis using a pay-as-you-go model. Transitioning costs to a recurring operating expense allows many businesses to exercise better and more predictable budgeting. Users can also terminate SaaS offerings at any time to stop those recurring costs.
Scalable usage: Cloud services like SaaS offer high scalability, which gives customers the option to access more, or fewer, services or features on-demand.
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