Cloud Providers offer services that can be grouped into three categories.
1. Software as a Service (SaaS): In this model, a complete application is offered to the customer, as a service on demand. A single instance of the service runs on the cloud & multiple end users are serviced. On the customers‟ side, there is no need for upfront investment in servers or software licenses, while for the provider, the costs are lowered, since only a single application needs to be hosted & maintained. Today SaaS is offered by companies such as Google, Salesforce, Microsoft, Zoho, etc.
2. Platform as a Service (Paas): Here, a layer of software, or development environment is encapsulated & offered as a service, upon which other higher levels of service can be built. The customer has the freedom to build his own applications, which run on the provider‟s infrastructure. To meet manageability and scalability requirements of the applications, PaaS providers offer a predefined combination of OS and application servers, such as LAMP platform (Linux, Apache, MySql and PHP), restricted J2EE, Ruby etc. Google‟s App Engine, Force.com, etc are some of the popular PaaS examples.
3. Infrastructure as a Service (Iaas): IaaS provides basic storage and computing capabilities as standardized services over the network. Servers, storage systems, networking equipment, data centre space etc. are pooled and made available to handle workloads. The customer would typically deploy his own software on the infrastructure. Some common examples are Amazon, GoGrid, 3 Tera, etc.
