What Is Infrastructure as a Service (IaaS)

Infrastructure as a Service (IaaS) - What It Is, How It Works & Key Use Cases

Infrastructure as a Service (IaaS) is a form of cloud computing that delivers fundamental IT infrastructure—such as compute, storage, and networking—over the internet on a pay-as-you-go basis. Instead of buying and maintaining physical servers and data centres, organisations can rent the resources they need from a cloud provider and scale them up or down as required.

IaaS is one of the core cloud service models and is widely used by businesses that want flexibility, control, and cost efficiency without the operational burden of managing physical hardware.

How Does Infrastructure as a Service (IaaS) Work?

IaaS works by virtualising physical data centre resources and making them available to customers through an online interface or API.

Here’s how it typically operates:

  1. Physical infrastructure
    The cloud provider owns and manages the physical servers, storage systems, networking equipment, and data centre facilities.

  2. Virtualisation layer
    Using hypervisors and software-defined technologies, physical resources are abstracted into virtual machines (VMs), virtual networks, and virtual storage.

  3. Self-service access
    Customers provision and manage resources through a web portal, CLI, or API—often in minutes rather than weeks.

  4. Usage-based billing
    You only pay for the resources you consume (e.g. CPU hours, storage capacity, network traffic).

With IaaS, customers retain control over operating systems, applications, security configurations, and data, while the provider manages the underlying hardware and facilities.

IaaS Architecture and Related Components

A typical IaaS architecture is made up of several key components working together.

1. Compute

  • Virtual machines (VMs)

  • CPUs and memory

  • GPU support for high-performance or AI workloads

2. Storage

  • Block storage (for databases and applications)

  • Object storage (for backups, archives, and unstructured data)

  • File storage (shared file systems)

3. Networking

  • Virtual networks and subnets

  • Firewalls and security groups

  • Load balancers

  • VPNs and private connectivity options

4. Virtualisation and Orchestration

  • Hypervisors (e.g. KVM, VMware)

  • Automation tools for scaling and provisioning

  • APIs for infrastructure management

5. Security and Management

  • Identity and access management (IAM)

  • Monitoring and logging

  • Encryption and compliance controls

This modular architecture allows IaaS platforms to be highly scalable, resilient, and customisable.

Common IaaS Use Cases

IaaS is suitable for a wide range of workloads and industries. Typical use cases include:

1. Website and Application Hosting

Organisations use IaaS to host websites, APIs, and business applications with full control over the environment.

2. Backup, Disaster Recovery, and Archiving

IaaS provides cost-effective storage and compute resources for backups, off-site replication, and disaster recovery environments.

3. Development and Testing

Developers can quickly spin up test environments without impacting production systems or investing in hardware.

4. High-Performance and Compute-Intensive Workloads

Ideal for analytics, AI/ML, rendering, simulations, and batch processing workloads.

5. Compliance and Data Sovereignty

IaaS allows organisations to choose where their data is stored and how it is secured—critical for regulated industries.

These three cloud models differ mainly in who manages what.

Infrastructure as a Service (IaaS)

  • You manage – OS, middleware, applications, data

  • Provider manages – physical infrastructure

  • Best for – flexibility, control, custom environments

Platform as a Service (PaaS)

  • You manage – applications and data

  • Provider manages – OS, runtime, infrastructure

  • Best for – developers who want to focus on code, not infrastructure

Software as a Service (SaaS)

  • You manage – usage and configuration

  • Provider manages – everything else

  • Best for – ready-to-use applications (e.g. email, CRM, collaboration tools)

In short:

  • IaaS = maximum control

  • PaaS = faster development

  • SaaS = minimal management

iaas-vs-paas-vs-saas image peasoup

IaaS vs. Other Cloud Services

IaaS is often compared with other cloud deployment and service models.

IaaS vs. Private Cloud

  • IaaS – shared infrastructure, elastic scaling, lower upfront costs

  • Private cloud – dedicated infrastructure, higher control, higher cost

IaaS vs. Bare Metal

  • IaaS – virtualised, flexible, scalable

  • Bare metal – physical servers, maximum performance, less flexibility

IaaS vs. Managed Cloud Services

  • IaaS – customer manages OS and workloads

  • Managed cloud – provider takes responsibility for maintenance, monitoring, and optimisation

Many organisations adopt a hybrid approach, combining IaaS with managed services or private infrastructure depending on workload requirements.

Why Businesses Choose IaaS

Organisations adopt Infrastructure as a Service because it offers:

  • Lower capital expenditure (no hardware purchases)

  • Rapid deployment and scalability

  • Greater control than higher-level cloud services

  • Improved resilience and availability

  • Support for modern, cloud-native and legacy workloads

For businesses looking to modernise IT while maintaining control, IaaS provides a strong foundation.

Summary

Infrastructure as a Service (IaaS) is a cornerstone of modern cloud computing, giving organisations the freedom to build, scale, and operate IT environments without the limitations of physical infrastructure. By understanding how IaaS works, its architecture, and how it compares to other cloud models, businesses can make informed decisions about their cloud strategy.

What is infrastructure as a service (IaaS)?