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In traditional IT, an organization consumes IT assets - hardware, system software, development tools, applications - by purchasing them, installing them, managing them and maintaining them in its own on-premises data center. 'As a service' refers to the way IT assets are consumed in these offerings - and to the essential difference between cloud computing and traditional IT. Many mid-sized businesses use more than one, and most large enterprises use all three. IaaS, PaaS and SaaS are not mutually exclusive. SaaS, or software as a service, is on-demand access to ready-to-use, cloud-hosted application software. PaaS, or platform as a service, is on-demand access to a complete, ready-to-use, cloud-hosted platform for developing, running, maintaining and managing applications.
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