There are three most popular cloud accounting models, PaaS, SaaS and IaaS. Finding the best cloud accounting model that suits you and your business best can be confusing. Especially when there are so many different options, and each of these options has its advantages.
Whilst they may all sound similar they all have their own meanings and all work differently in their own way. So let’s break it down and take a look into what each means and which one is best for you and your business.
At DH Business Support, our team is on hand to help you with your accounting needs at any time. Get in touch today to learn more about what we have to offer.
The Basics: What Do PaaS, SaaS, and IaaS Stand For?
Let’s start with the basics and break down what each service stands for:
- PaaS – Platform as a Service
- SaaS – Software as a Service
- IaaS – Infrastructure as a Service
These terms describe the different levels of service that cloud providers offer, they each give a different amount of control and responsibility, so it is up to you how much you want to control.
Let’s look into what is different about each software:
The Key Features and Differences of Each Model
| Feature | PaaS | SaaS | Iaas |
| Speed | Fast- you can build apps quickly with built-in tools | Fast- just log in and start using | Slower- You need to set up your servers and software, as it is tailored to you |
| Growth | Auto-scales as your app grows | Auto scales with your usage | You control how your software scales, and you can add and remove servers |
| Control | Slight control, you control the app, not the servers | Low control, you only manage settings inside the application | Full control, you manage the servers and updates |
| Management | The provider manages servers and updates | Everything is managed for you | You manage servers and updates |
| Payment | You pay for what you use | Based on a subscription | Pay for virtual machines/storage |
PaaS (Platform as a Service)
PaaS is typically used by software developers and it provides a cloud based platform that is complete with tools, frameworks and runtime that developers can use to build, test and move applications.
Key Benefits:
- Less hassle, you no longer have to worry about managing servers.
- Integrated tools include databases, testing tools and APIs.
- Affordable, pay only for what you use.
PaaS is best suited to software development teams and tech teams. PaaS provides a complete development environment and therefore it is perfect for businesses that want to develop, test and move apps quickly.
SaaS (Software as a Service)
SaaS is the most common type of cloud service. Instead of installing and regularly updating software across individual computers, users can access their accounts through a web browser or mobile app.
SaaS applications are maintained by the service provider so there is no need to worry about software updates or data backups as everything is already handled for you.
Key Benefits:
- No installation needed, you can sign up and use your SaaS software anytime and anywhere.
- You don’t have to worry about maintenance, updates and bug fixes are handled by the server automatically.
- Affordable, pay-as-you-go.
SaaS is beneficial for most types of businesses as it requires no technical knowledge to set up or manage. Offering quick access to essential tools like email, file storage, project management and collaboration platforms. This can help businesses to reduce IT costs and more time to focus on core operations. Learn the best SaaS software here.
IaaS (Infrastructure as a Service)
IaaS is the most flexible and customisable form of cloud service model. It provides computing resources such as servers, networking and storage.
This gives you the same level of control as you would have with physical hardware, but without the upfront costs of purchasing it.
Key Benefits:
- With full control, you can choose the operating systems, middleware and apps.
- Scalable, you can adjust the resources depending on the workload.
- Resources on demand, if you have unpredictable workloads, this is ideal or if you are working on temporary projects.
IaaS is ideal for businesses with internal IT teams and businesses that require custom infrastructure. Since IaaS offer flexibility and control, it is perfect for businesses that want to replicate or replace their current infrastructure on the cloud whilst remaining in control.
How to Choose The Right Model For Your Business
Choosing the correct model for your business depends on your business requirements, preferences and long-term goals. To choose which is the right one for your business, here are some things you should consider:
- Consider Your Development Needs – If your primary focus is application development and innovation, PaaS may be the ideal choice, offering a streamlined development experience and access to pre-configured tools and services.
- Evaluate Application Requirements – For businesses seeking ready-to-use software applications with minimal maintenance overhead, SaaS provides a convenient solution, offering accessibility, scalability, and automatic updates.
- Assess Infrastructure Control – If you require maximum control and flexibility over your IT infrastructure, IaaS empowers you to customise and manage virtualised resources according to your specific requirements.
Get Tailored Accounting Advice Today From Our Team
Ultimately, choosing between PaaS, SaaS and Iaas is about finding the right fit for your business goals. Whether you are new to business, looking for easy-to-use software or just want more control over your infrastructure. There is always a model that will work for you.
Whilst cloud services are great, navigating them can be confusing, especially the accountancy side of things and making sure that you are using cloud tools securely is essential. However, we are here to help! At DH Business Support, our team of SaaS accountants are here to help and guide you through your cloud accounting.
We will help you to create a strategy that works and we will explain it to you in simple terms.
Get in touch with a member of our team today to find out how we can help you to better manage your finances and get the most out of your cloud software.