In general, there are three types of cloud computing services: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS).

IaaS is a way of delivering cloud computing infrastructure – servers, storage, network, and operating systems – as an on-demand service, rather than purchasing that infrastructure. In IaaS, resources are distributed as a service, which allows for dynamic scaling. This type of service makes sense when an organization has very volatile demand, and as a result, there is fluctuating demand for the infrastructure as well. It is also great for companies that are new and do not have the capital to invest in new hardware or if a company is growing rapidly and needs to scale its resources.

PaaS allows for the creation of web applications quickly and easily without the complexity of buying and maintaining the underlying software and infrastructure. In other words, it is a platform for the creation of software, delivered over the internet. PaaS is different from IaaS in the value added from providing a platform for software development, focused on workflow management regardless of data source, and a platform for the creation of software utilizing data from an application. This type of service makes sense when there are multiple developers working on a development project or other external parties need to interact with the development process. In other words, PaaS makes is easier for developers to create web or mobile applications without worrying about setting up the underlying infrastructure.

SaaS is a process for delivering software applications over the internet, on-demand, and typically on a subscription basis. Cloud providers host and manage the software application and underlying infrastructure and handle any maintenance, such as software upgrades and security patching. SaaS has been a growing method of delivering technology, such as in financial management, customer relationship management, healthcare management.