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Infrastructure as a service (IaaS) is a cloud computing model that outsources IT infrastructure. IaaS providers purchase and manage expensive, physical computing resources while providing a wide range of cloud services in return. Companies essentially rent out the provider’s processing power to virtualize servers, store data, and facilitate network traffic.
IaaS offerings allow businesses to create and utilize virtual hardware tools without buying, building, or hosting them. These tools are provided externally as virtualized servers, databases, or bandwidth, as well as other tools.
What Does IaaS Stand For?
IaaS stands for infrastructure as a service. The products deliver virtualized infrastructure deployed on the physical resources of a cloud services provider. They deliver these virtualized solutions in the form of a managed service, hence it is called infrastructure “as a service.”
It is common for IT departments to use a patchwork of IaaS solutions to manage web applications across multiple environments. However, this complex architecture needs to be evaluated constantly to maintain efficiency and meet business goals. Deciding between using public, private, or hybrid clouds usually comes down to performance and cost.
Public cloud
Public clouds are the most cost-effective route when choosing an IaaS provider, as they allow businesses to reduce upfront spending on hardware and maintenance costs. Technical benefits of public cloud options include scalability, reliability, and broader feature sets. Public cloud options are popular among startups and small businesses; however, they may not be the best fit for businesses operating in industries regulated by data security laws (HIPAA, PCI, etc.).
Private cloud
Private clouds offer better security and compatibility for legacy web applications, as well as an easier migration process than public clouds. Private clouds can be housed in onsite data centers; however, most mid-market to enterprise-level businesses that use private clouds opt to use third-party IaaS service providers. Private clouds are popular among businesses in industries such as finance, healthcare, and commerce, where data security is held to a higher standard than in other industries.
Hybrid cloud
Hybrid clouds provide a combination of the two options mentioned above. Hybrid clouds are popular among large enterprises and other businesses looking to find common ground between security and cost. This approach to IaaS allows businesses to process certain parts of a web application in a public cloud while storing and processing confidential data in a private cloud.
The following are some core features within IaaS that can help users build, deploy, and manage cloud services:
Virtual machines (VMs): IaaS software provides virtualized networks, applications, and operating systems. These solutions deliver emulated tools using the provider’s physical resources. VMs expand a user’s access to operating systems and host environments without requiring expensive hardware.
Storage management: IaaS software provides management tools for data storage, database configuration, and scaling. These solutions give users access to a variety of databases and cloud storage applications that scale as use increases. Cloud-based storage can become especially important for preventing data loss.
Networking: IaaS software lets users provision networks, deliver content, balance loads, and manage traffic. Networking features allow users to choose how data is connected and networks are communicating.
Cloud migration: IaaS software allows data and VM transfers during adoption and maintenance. Digital transformation has caused many businesses to shift from on-premises infrastructure to cloud-based solutions. Cloud migration tools simplify and expedite the process of transferring systems to the cloud.
Analytics: IaaS software lets users analyze storage, performance, and connectivity. Analytics features can help optimize performance for users by managing traffic and resource allocation. Some IaaS solutions also have big data analytics features to help users process enormous data sets.
Maintenance: IaaS software enables maintenance to existing VMs to improve functionality and security. Maintenance features help users centralize control over their users, their endpoints, and the VMs they access.
Database management: IaaS software supports managing different types of databases and integration methods. Database support can give users access to cloud databases and sync them to facilitate live updates.
Outsourced infrastructure: IaaS solutions can be a great fit for all businesses. For example, small businesses can avoid the costly process of building or buying in-house software solutions by using IaaS solutions. These tools can require heavy maintenance but are managed by the service provider rather than the small business. Instead of hosting the tools onsite, they are distributed through multiple data centers and maintained by the IaaS provider.
Scaling: IaaS solutions are ideal for growing businesses. They are highly scalable and are offered on a pay-per-use basis. This means that companies don’t have to worry about surprises in cost. As the company grows and utilizes an existing plan, they are already presented with the price for additional usage.
Flexibility: Small businesses with limited physical resources can subscribe to an IaaS solution and multiply their potential infrastructure. New, larger databases allow companies to use scalable storage solutions. Virtual desktops enable customers to utilize products across any platform. Companies are also provided with as much bandwidth as they need.
Outsourced management: If a company has limited staff or time, they can also benefit from the automation of multiple tasks. This includes IT administrative duties, deployments, application monitoring, and others (depending on the provider). Providers control resources to optimize a company’s services or an application’s productivity.
Application lifecycle management: Tech companies developing new software can benefit from IaaS solutions significantly during the development and testing phases. Application hosting and testing can be much cheaper through remote servers than through self-hosting. Users are able to test and deploy a tool multiple times without requiring in-house servers. They can then either keep an application hosted remotely or deploy it on in-house resources once the application is ready to be made publicly available.
Alternatives to IaaS can replace this type of software, either partially or completely:
Managed hosting providers: Managed hosting is essentially the precursor to IaaS. These providers will offer servers, VMs, and other hosting services on a smaller scale. IaaS offers a wider variety of services and a higher maximum performance and scalability threshold.
Virtual private servers (VPS) providers: Both VPS and IaaS can be used to create individual servers, but IaaS has a significantly larger scope. IaaS operates with pay-per-use pricing and in many cases can virtualize entire data centers.
Virtual private cloud (VPC) software: IaaS and VPC solutions both rely on third-party infrastructure and shared, fixed resources, but most VPC offerings can manage numerous servers and VMs to build their own cloud services rather than a single VPC. VPC is often offered by IaaS providers, but isolates services from customers, improving control and security for the customer.
Related solutions that can be used together with IaaS include:
Cloud platform as a service (PaaS): IaaS is typically considered the most bare bones offering model for cloud-based solutions. IaaS provides a wider range of functionality and customization compared to PaaS and software as a service (SaaS) offerings. IaaS delivers computing power and management capabilities, while PaaS and SaaS provide a range of prebuilt tools and applications.
Security and compliance: During the evaluation process, the buyer will need to take into consideration the data they plan on processing in the IaaS solution. Sensitive data such as intellectual property, medical records, and payment information require strict security controls. As regulations like the Payment Card Industry Data Security Standard (PCI DSS) and Health Insurance Portability and Accountability Act (HIPAA) dictate how confidential data is stored and transferred, businesses governed by these will have to make sure their IaaS provider can meet these standards.
Existing infrastructure: Businesses with existing cloud infrastructure will have to consider the cost and effort necessary to migrate to or integrate with a new cloud solution. While migrating to a private cloud can be easier for businesses with existing infrastructure, public clouds offer broader feature sets and lower costs. Furthermore, several IaaS providers offer entire ecosystems around their solutions which can also influence buying decisions.
The first step to purchasing an IaaS solution is to outline the options. Companies should include the dominant cloud computing service providers, but also explore alternatives with additional features, services, and integrations. Additional considerations should also include costs, staffing limitations, and required services.
Create a long list
Once the requirements are outlined, buyers should rank the tools by priority and identify the ones with as many of the features that fit the budget window. It is recommended to restrict the list to products with desired features, pricing, data center locations, and deployment methods to identify a dozen or so options.
Create a short list
Once the long list is limited to affordable products with the desired features, it’s time to search for third-party validation. At this point, for each tool, the buyer must analyze end-user reviews and analyst reports. Combining these specified factors should help rank options and eliminate poorly performing products.
Conduct demos
With the list narrowed down to three to five possible products, businesses can reach out to vendors and schedule demos. This will help to get first-hand experience with the product, ask targeted questions, and gauge the vendors quality of service.
Choose a selection team
To choose a selection team, decision makers need to involve subject matter experts from all teams that will use the system. For IaaS software, this primarily involves IT managers, developers, and security staff. Any manager or department-level leader should also include individuals managing any solution the backup product will be integrating with.
Negotiation
Depending on the maturity of the business, the seniority of the negotiation team may vary. It is advisable to include relevant directors or managers in the security and IT departments as well as from any other cross-functional departments that may be impacted.
Final decision
If the company has a chief technology officer, that individual will likely make the decision. If not, companies must trust their security professionals’ ability to use and understand the product.
IaaS offerings are virtually all priced using the pay-per-use model. This means companies can pick and choose which services they would like to utilize and pay only for those services. The cost is typically determined by the kind of services a customer is licensing and how much computing capacity they use. Additionally, services may be available for companies to purchase future, scheduled services, or ad-hoc instances, or both. Some providers also include volume-based discounts for high-scale usage and packaged discounts that include numerous services.
ROI for IaaS is typically determined by the cost of adoption relative to the cost of purchasing and managing in-house, on-premises infrastructure. The former will be faster and cheaper, as it requires no physical implementation or perpetual maintenance staffing. The latter, on-premises infrastructure will cost more upfront, but ROI will still depend on the staff available and the long-term scaling plans.
Microservices: Infrastructure is the backbone of any cloud service offering. Microservices architecture is an evolving approach to building, deploying, and maintaining software systems. Microservices typically provide a suite of applications or plug-and-play modules to support a company’s specific needs. Microservices control how independent applications communicate with each other. Often powered by an IaaS solution, microservices can be used to develop virtually any software solution from wearable technology to fintech solutions.