Infrastructure as a Service
IaaS allows for computer infrastructure, typically a platform virtualisation environment to be sold as a service. So rather than having to purchase servers, software, data center space or network equipment, clients instead buy all those resources as a fully outsourced service. The service is scalable and can be sold based on the amount of resources consumed.
Accordng to HP, physical servers can be consolidated 13:1 for 90% fewer servers, 95% lower power and cooling expenses and 90% fewer software licenses realised. Using Storage Area Networks is a way to consolidate disk space.
Platform as a Service
PaaS is the delivery of an entire computing platform that is sold as a service. This is typically used for web based applications, and does away with the cost and complexity of having to purchase and setup the underlying hardware.
Software as a service
SaaS is basically a software program you can use on demand or as a subscription.
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