IaaS vs. SaaS – why the difference is very relevant for cloud software

Find out what the difference between IaaS (Infrastructure as a Service) and SaaS (Software as a Service) is – and what this has to do with cloud software architecture.

Lift and shift?

You may have heard of the term lift and shift – which means you take some existing system or application that has been living happily in a data center for years, rip it out and move it over to some cloud provider. Usually the idea behind this is saving on data center infrastructure and management cost. And usually lift & shift means that you spin up the required number of virtual machines in the cloud and reconfigure their connections and backup settings. Sounds simple, but is this giving you the benefits that true cloud solutions could provide? Most likely not. VM’s are great, and they have revolutionized app and service provisioning. They have decoupled the 1:1 relationship between soft- and hardware and allowed for easy sharing of servers between different systems. And they are still going to be around for a long time. Using VM’s from some cloud provider would mean consuming Infrastructure as a Service (IaaS).

However we are in 2019, and VM’s are not the latest-and-greatest technology any more – rather look at SaaS (Software as a Service) as the new mainstream. What does that mean?

Assume you need a database to store your customer and sales data. In ancient times you would have bought a server and installed your operating system and database software. You would have planned for regular updates of your systems to cater for security patches and bug fixes. If your server broke down you were in trouble and hopefully had a disaster recovery plan that allowed for fast re-installation once the hardware was fixed or replaced. Then the VM concept entered the arena. You could just backup your entire server to a single file. Move it to another machine if required. And the virtual machine concept enabled better use of existing hardware by running several VM’s on the same physical machine – a huge step forward.

The IaaS approach

With the cloud you can now use the exact same technology but without owning any physical hardware by yourself. Just sign up with a cloud provider and book as many cloud based VM’s as you need – with size and performance as required. This approach is called IaaS – Infrastructure as a Service. But it still leaves you with maintenance work for the VM’s operating system and database. You still need to maintain and manage those setup procedures and maybe fine tune your database system parameters. If you need high availability you’ll have to set up several VM’s and manage the cluster. And if your database is sitting idle because there’s not much activity during non office hours you still pay for every single minute all your VM’s are up and running. You could do better: go and buy not the VM for the database – rather buy the database service itself! Skip that middle layer. The cloud providers offer a broad range of database services – from the classical relational DB’s to NoSQL and Caches, all fully managed, with high-availability and data backup rather simple configuration options.

The SaaS approach

This is the SaaS approach – software as a service. It will be much simpler to set up and maintain, and it will typically be more cost efficient. And easier to scale up if required. Can you do this for existing legacy software that you can’t or don’t want to touch? Probably not, at least not if your legacy software requires a specific version of database xyz with specific settings and configuration. Can you go that way for a new development? Yes of course – pick the most suitable option for your use case, and don’t forget to take a look at resource pricing before you make your choice. Your system architecture and your selection of cloud components as building blocks will have a huge impact on your future operation cost.

For many use cases the SaaS approach will be more interesting. Go that way if you can. Especially for new developments consider using SaaS over IaaS approaches, and if possible serverless over containers. The ‘lift & shift’ approach for existing applications could for many companies be the first step towards cloud based IT. However don’t stop there – at least you may want to investigate a more in-depth approach over time, where the existing application is restructured and optimized to leverage the cloud capabilities.


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