Why SaaS companies must leverage IaaS & PaaS to save time and money

SaaS industry
At a Glance

Since their inception in the early 2000s, PaaS and IaaS providers like Amazon’s AWS and Microsoft’s Azure have been absolute game-changers for the SaaS industry. Their platforms have helped thousands of entrepreneurs develop SaaS products without breaking the bank.

In this article, we’ll give you a brief overview of what they are, the major IaaS and PaaS providers. How IaaS and PaaS platforms help SaaS companies save time and money.

What are PaaS and IaaS

In simple words, PaaS or Platform as a Service offers users a virtual platform to build software, and IaaS or Infrastructure as a Service gives users access to virtualized IT infrastructures like storage, computers, and networking.

The basic premise of IaaS is to help companies avoid investing their resources in on-site infrastructure and offer a cloud-based alternative. On the other hand, PaaS reduces the effort required for coding by providing pre-built platforms, which helps users manage servers, networking, storage, and various other operations efficiently. 

Before PaaS and IaaS came into the picture, startups had to build their own infrastructure and figure out ways to scale up and deploy add-ons as they grew. Today, most SaaS startups can host everything on cloud platforms and focus on what they do best: making amazing software.

In 2022, the lines between PaaS, SaaS, and IaaS companies are rapidly blurring, and it is essential to know how one can complement the other. To understand that, let’s look at the most popular PaaS providers in the market.

  • Amazon AWS

Amazon Web Services (AWS) is a cloud-based program for building business solutions using integrated web services. AWS users have access to ‘AWS Elastic Beanstalk’ that gives developers an easy way to deploy services. AWS scales the application based on the resources needed. After uploading applications, everything else from load balancing to auto-scaling is handled by Elastic Beanstalk. 

Apart from PaaS services, AWS also gives users access to a wide range of cloud services such as content delivery and database storage (IaaS). 

  • Microsoft Azure

Many cloud providers are blurring the lines between PaaS and IaaS (Infrastructure as a Service). Microsoft Azure is no stranger to this idea of mixing and matching both services. With Azure, clients can use the services purely on the cloud. It can be combined with any existing applications, data center, or infrastructure that the SaaS company may already have in place.

  • Google Cloud

Google Cloud can run and manage monitoring, scaling, and hosting for SaaS companies. Google’s Compute Engine SaaS companies can secure and customize compute services that let users create and run virtual machines on Google’s infrastructure. With Google’s Cloud Storage, companies can store any amount of data and retrieve it as often they’d like.

Why must SaaS companies leverage IaaS and PaaS

As we can see, most IaaS companies are also PaaS providers and vice-versa. Since all PaaS is built on top of IaaS, PaaS offers middleware and development tools to businesses while providing the advantages and value of IaaS. Here are some of the benefits for SaaS companies leveraging IaaS and PaaS ecosystems:

Rapid Time-to-Market

With PaaS, developers gain instant access to sample code and pre-built components. Using these tools, developers can integrate the pre-coded components such as security features, directory services, search options, etc., into the developing application. This saves time by minimizing the effort needed for coding a new app.

Increased Scalability and Flexibility

With IaaS, businesses can scale up or down on-demand and as-needed. For example, let’s take a SaaS business catering to a live sporting event. It needs hosting infrastructure to meet high traffic over a relatively short period. IaaS ensures that the business infrastructure can handle the boost in traffic through procedures such as the automatic provisioning of resources. This reduces the need to invest in massive servers to meet short-term requirements.

Manage entire application lifecycle

PaaS design is to support the complete development lifecycle of software businesses – building, testing, deploying, managing, and updating. SaaS startups do not have to look anywhere else for managing their entire application lifecycle. 

Disaster Recovery and Business Continuity

Most IaaS providers are prepared for worst-case scenarios. They host their equipment in highly secure data centers with backup power, advanced cooling, and network connectivity. In contrast, traditional SaaS startup offices do not have the luxury to build complex centers with such redundancies. Minimizing downtime and business continuity is one of the significant benefits of IaaS hosted in the cloud. As it was evident when the world went into a lockdown during the Covid-19 pandemic.

Location-independent teams

Since the development environment is accessible via the internet, multiple development teams located across the world can work together on application development using PaaS infrastructure.

System maintenance and support pains

An in-house platform for application development needs to be maintained and updated whenever new versions are released. If not, it could expose the company to significant security issues or miss out on the latest features and capabilities. Similarly, maintenance of servers and infrastructure is a huge hassle. This is where PaaS and IaaS play a significant role and reduce such pain points for SaaS companies.


The primary benefit of using PaaS and IaaS is their utility billing model, where SaaS companies can opt to pay for only the services they use. Since IaaS and PaaS provide both hardware and software infrastructure, cost savings are significant.


Using IaaS and PaaS providers like Azure and AWS give startups an all-in-one solution for the efficient development of SaaS products. In addition, the platform provider handles the server management and platform performance optimization. It maximizes uptime and minimizes development and maintenance problems. 

Last but not the least, the cost savings that IaaS and PaaS provide to businesses in terms of lower initial investment, faster time to market, and access to better technology help reduce the overall cost to the company.

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