What is IaaS?
Infrastructure as a Service (IaaS) is a cloud computing model that provides businesses with virtualized computing resources over the internet. Instead of investing in physical servers, networking, and data centers, companies can rent IT infrastructure on demand from cloud providers. This allows businesses to scale their operations efficiently without the high upfront costs of traditional on-premises IT setups.
How does IaaS work?
IaaS operates by delivering on-demand computing resources such as servers, storage, and networking through a cloud platform. Businesses access and manage these resources via a web-based dashboard or API.
How it works:
- Virtualization – Physical hardware is virtualized into multiple instances that customers can use flexibly.
- Automated Provisioning – Users can scale resources up or down as needed.
- Pay-as-You-Go Pricing – Costs are based on actual usage, reducing waste.
- Remote Management – Companies can configure and manage their infrastructure without needing on-site IT staff.
This model is particularly useful for businesses that need scalable, flexible, and cost-effective IT solutions without the burden of maintaining hardware.
examples of IaaS providers
Many cloud providers offer IaaS solutions, including some of our key partners:
AWS (Amazon Web Services)
One of the largest cloud providers, AWS offers Elastic Compute Cloud (EC2) for virtual machine hosting, Simple Storage Service (S3) for object storage, and Virtual Private Cloud (VPC) for networking solutions.
Microsoft Azure
Azure’s Virtual Machines provide cloud-based computing power, while Azure Blob Storage offers scalable storage solutions. Azure’s Hybrid Cloud capabilities make it a strong choice for enterprises.
Nutanix
Known for its hyper-converged infrastructure (HCI) solutions, Nutanix combines computing, storage, and networking into a unified cloud environment.
How is IaaS different from SaaS and PaaS?
IaaS is just one layer of cloud computing. It differs from Software as a Service (SaaS) and Platform as a Service (PaaS) in several ways:
| Feature | IaaS | PaaS | SaaS |
|---|---|---|---|
| Definition | Provides virtualized computing resources like servers, storage, and networking | Offers a platform for developing and managing applications without handling the underlying infrastructure | Delivers fully managed software applications to end users |
| User Control | Full control over infrastructure | Control over applications and data but not infrastructure | No control over infrastructure or platform, only the software itself |
| Examples | AWS EC2, Microsoft Azure Virtual Machines, Google Compute Engine | AWS Lambda, Google App Engine, Microsoft Azure Functions | Google Workspace, Microsoft 365, Dropbox |
Software as a Service (SaaS)
SaaS provides businesses with fully developed software applications that are accessible via a web browser without the need for local installation. This model is commonly used for email, collaboration tools, and business productivity applications.
Examples of SaaS include Microsoft 365, which provides cloud-based office applications, and Google Workspace, which offers email and document collaboration tools.
Platform as a Service (PaaS)
PaaS offers a development and deployment environment in the cloud, enabling developers to build, test, and manage applications without worrying about the underlying infrastructure. This model is useful for software developers who need a streamlined environment to create applications.
Examples include Google App Engine, which allows developers to build scalable applications, and AWS Lambda, which provides a serverless computing environment.
What are the security considerations for IaaS?
While IaaS offers flexibility and scalability, security remains a critical concern. Organizations using IaaS must take active steps to protect their data and infrastructure. Below are key security considerations:
- Data Breaches & Loss – Since IaaS providers manage the underlying hardware and network infrastructure, businesses must ensure their data is properly encrypted at rest and in transit. Unauthorized access due to weak encryption can lead to data breaches and loss.
- Misconfigurations – A common security issue arises from misconfigured cloud storage, firewall settings, or identity access controls. Many data leaks occur due to human error in setting up cloud security rules.
- Unauthorized Access – Weak authentication policies can allow unauthorized access to virtual machines, databases, and storage solutions. Implementing multi-factor authentication (MFA) and strict access controls is necessary to mitigate this risk.
- Compliance Issues – Businesses operating in regulated industries, such as healthcare and finance, must ensure their IaaS provider complies with industry standards such as GDPR, HIPAA, or ISO 27001.
- DDoS and Cyberattacks – IaaS resources can be targeted by distributed denial-of-service (DDoS) attacks, which can cause service disruptions. Implementing cloud-based firewalls and traffic monitoring can help prevent such attacks.
How is IaaS used in businesses?
With IaaS, we’ve helped businesses scale seamlessly without the burden of upfront infrastructure costs. One of our clients went from struggling with on-premise server limitations to handling peak traffic effortlessly on the cloud – cutting downtime and saving thousands in IT overhead.
Alan Leong
CallNet technical director
IaaS has broad applications across industries. Real-life scenarios include:
Disaster Recovery
Businesses need reliable disaster recovery solutions to ensure operations continue even in the face of cyberattacks, system failures, or natural disasters. Take one of our clients for example, a logistics company in Malaysia that uses AWS S3 and Glacier for real-time backup storage. This enables them to restore critical shipment data within minutes after a cyberattack, ensuring minimal disruption in their supply chain operations.
Big Data Analytics
A financial services firm in Kuala Lumpur processes massive amounts of transactional data using Google BigQuery. By leveraging cloud analytics, they can detect fraud patterns and optimize customer credit risk assessments in real-time, significantly reducing financial losses while improving decision-making.
Hosting Applications
Retail businesses and ecommerce platforms must ensure their websites and applications remain accessible and perform well during peak shopping periods. An eCommerce startup we worked with in the past hosts its platform on Azure Virtual Machines, enabling automatic scaling to accommodate traffic surges during major online sales events like 11.11 and Hari Raya. This ensures a seamless shopping experience and prevents revenue loss due to downtime.
Development & Testing Environments
Software developers need flexible environments to test applications before deploying them to production. Most fintech companies in Malaysia relies on AWS EC2 instances to create secure test environments before launching new financial applications. This approach allows the company to rigorously test security features and performance without affecting live banking services.
Scaling Your Business with IaaS – We Can Help!
IaaS is a cornerstone of modern IT infrastructure, allowing businesses to optimize costs, enhance scalability, and streamline operations. However, choosing the right IaaS provider and ensuring proper security measures are crucial for success.
As a trusted B2B IT provider in Malaysia, Callnet Solution brings over 20 years of experience serving businesses across diverse industries. Whether you’re a small startup or a large enterprise – we help you navigate the complexities of IT infrastructure with solutions tailored to your needs. To explore how Callnet can support your business with cloud and IT services, reach out to us for a free consultation.
