Cloud computing is a method for delivering information technology (IT) services in which resources are retrieved from the Internet through web-based tools and applications, as opposed to a direct connection to a server. Rather than keeping files on a proprietary hard drive or local storage device, cloud-based storage makes it possible to save them to a remote database. As long as an electronic device has access to the web, it has access to the data and the software programs to run it.
Different Types of Cloud Computing
Cloud computing is not a single piece of technology, like a microchip or a cell phone. Rather, it’s a system, primarily comprised of three services: infrastructure as a service (IaaS), software as a service (SaaS)+ and platform as a service (PaaS). SaaS is expected to experience the fastest growth, followed by IaaS.
Software as a Service (SaaS): SaaS involves the licensure of a software application to customers. Licenses are typically provided through a pay-as-you-go model or on-demand. This rapidly growing market could provide an excellent investment opportunity, with a Goldman Sachs report projecting that by 2018, 59% of the total cloud workloads will be SaaS.
Infrastructure as a Service (IaaS): Infrastructure as a service involves a method for delivering everything from operating systems to servers and storage through IP-based connectivity as part of an on-demand service. Clients can avoid the need to purchase software or servers, and instead procure these resources in an outsourced, on-demand service.
Platform as a Service (PaaS): Of the three layers of cloud-based computing, PaaS is considered the most complex. PaaS shares some similarities with SaaS, the primary difference being that instead of delivering software online, it is actually a platform for creating software that is delivered via the internet. A report by Forrester indicates that PaaS solutions are expected to generate $44 billion in revenues by the year 2020.