PaaS Business Model

PaaS stands for the platform as a service. Together with other “as-a-service” models, this model‘s basic premise is to offer a solution to the final customer without having to host it on-premise, with complex implementations and large overhead. The PaaS model is a form of evolved cloud computing. The provider, together with virtualization, storage, network, and servers, provides middleware and runtime to the user/customer, which only handles data and applications.

Platform as a Service — IaaS includes servers and storage, networking firewalls and security, and datacenter (physical plant/building). PaaS includes IaaS elements plus operating systems, development tools, database management, and business analytics. SaaS includes PaaS elements plus hosted apps.
Image Source: Microsoft Azure, What Is PaaS?
The different layers of companies built on top of the various “as-a-service” models. From IaaS which is in the middle bottom, to SaaS which also handles the applications for the final user. PaaS is in the middle, as the PaaS provider also manages middleware and runtime, while the user manages data and applications built on top of the PaaS.

PaaS applications and examples

In the PaaS model, the platform that enables the applications’ development is handled by the PaaS provider, where the final user/customer (usually development teams) will handle the application and data itself. Therefore, the PaaS provides a platform where users can develop and deploy their own applications, with the advantage of an agile infrastructure, not hosted on-premise, and therefore faster to implement and more flexible.

Some PaaS providers also include Microsoft Azure, Google Cloud, Amazon AWS, IBM Cloud, where together with the cloud infrastructure (IaaS), the platform to develop and deploy applications on top of the cloud is offered.

This makes it possible for the user/customer of the PaaS provider to only focus on developing and deploying applications, rather than developing the whole infrastructure.

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"