Expense increase or decrease as per demand– Instead of having to invest heavily in data centers and servers before you know how you’re going to use them, you can pay only when you consume computing resources, and pay only for how much you consume.
Benefit from massive economies of scale – By using cloud computing, we can achieve a lower variable cost than you can get on your own. Because usage from hundreds of thousands of customers is aggregated in the cloud, providers such as AWS can achieve higher economies of scale, which translates into lower pay as-you-go prices.
Stop guessing capacity – Eliminate guessing on your infrastructure capacity needs. When you make a capacity decision prior to deploying an application, you often end up either sitting on expensive idle resources or dealing with limited capacity. With cloud computing, these problems go away. You can access as much or as little capacity as you need, and scale up and down as required with only a few minutes’ notice.
Increase speed and salability – In a cloud computing environment, new IT resources are only a click away, which means that you reduce the time to make those resources available to your developers from weeks to just minutes. This results in a dramatic increase in agility for the organization, since the cost and time it takes to experiment and develop is significantly lower.
Low Cost to maintaining data centers – Cloud computing lets you focus on your own customers, rather than on the heavy lifting of racking, stacking, and powering servers.
Easy Deployment– Easily deploy your application in multiple regions around the world with just a few clicks. This means you can provide lower latency and a better experience for your customers at minimal cost.
Service Models on Cloud
Software as a Service (SaaS)
The SaaS model allows your business to quickly access cloud-based web applications without committing to installing new infrastructure. The applications run on the vendor's cloud, which they, of course, control and maintain. The applications are available for use with a paid licensed subscription, or for free with limited access. SaaS does not require any installations or downloads in your existing infrastructure.
SaaS does not require any installations or downloads in your existing computing infrastructure. This eliminates the need for installing applications on each of your computers with the maintenance and support taken over by the vendor. Some known example of SaaS includes Google G Suite, Microsoft Office 365, Drop box etc.
Platform as a Service (PaaS)
Platform as a Service or PaaS is essentially a cloud base where we can develop, test and organize the different applications for your business. Implementing PaaS simplifies the process of enterprise software development. The virtual runtime environment provided by PaaS gives a favorable space for developing and testing applications.
The entire resources offered in the form of servers, storage and networking are manageable either by the company or a platform provider. Google App Engine and AWS Elastic Beanstalk are two typical examples of PaaS. PaaS is also subscription based that gives you flexible pricing options depending on your business requirements.
Infrastructure as a Service (IaaS)
IaaS, as the most flexible of the cloud models, allows your business to have complete, scalable control over the management and customization of your infrastructure.
In the IaaS model, the cloud provider hosts your infrastructure components that would traditionally be present in an on-site data center (such as servers, storage and networking hardware). Your business, however, would maintain control over operating systems; storage, deployed applications, and possibly limited control of select networking components (e.g. host firewalls).