Quick Answer
IaaS provides raw cloud infrastructure such as virtual machines and storage. PaaS adds managed runtimes such as databases and Kubernetes . SaaS delivers complete applications such as Salesforce or Microsoft 365. Most Indian enterprises end up using all three, but the right starting point depends on the workload, the team's engineering depth, and the compliance posture you need. Defining each model The three service models map to different layers of the cloud stack and different shared responsibility splits. The further up the stack you go, the more the provider operates for you and the less control you keep. IaaS, Infrastructure as a Service: compute, storage, networking. You manage the OS, runtime, application and data. Examples include AWS EC2, Azure Virtual Machines, Google Compute Engine. PaaS, Platform as a Service: managed runtimes for databases, containers, message queues, application platforms. The provider manages the underlying OS and middleware.
IaaS provides raw cloud infrastructure such as virtual machines and storage. PaaS adds managed runtimes such as databases and Kubernetes. SaaS delivers complete applications such as Salesforce or Microsoft 365. Most Indian enterprises end up using all three, but the right starting point depends on the workload, the team's engineering depth, and the compliance posture you need.
Defining each model
The three service models map to different layers of the cloud stack and different shared responsibility splits. The further up the stack you go, the more the provider operates for you and the less control you keep.
- IaaS, Infrastructure as a Service: compute, storage, networking. You manage the OS, runtime, application and data. Examples include AWS EC2, Azure Virtual Machines, Google Compute Engine.
- PaaS, Platform as a Service: managed runtimes for databases, containers, message queues, application platforms. The provider manages the underlying OS and middleware. Examples include AWS RDS, Azure SQL Database, Google BigQuery, AWS EKS.
- SaaS, Software as a Service: complete applications delivered over the internet. You manage configuration and data. Examples include Salesforce, Microsoft 365, Workday, ServiceNow.
Side by side comparison
| Dimension | IaaS | PaaS | SaaS |
|---|---|---|---|
| Control | Highest | Medium | Lowest |
| Operational burden | Highest | Medium | Lowest |
| Time to value | Slowest | Fast | Fastest |
| Best for | Custom apps, legacy lift and shift | Cloud native apps, databases, analytics | Standard business functions, CRM, HR, email |
| India example | BFSI core on EC2 | D2C platform on EKS plus RDS | Salesforce for sales teams |
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Practical guidance for Indian buyers
- Use SaaS for commodity functions. Email, CRM, HR, ITSM, expense management. Building these yourself is rarely worth the engineering investment.
- Use PaaS for cloud native apps and data platforms. Managed Kubernetes, managed databases and managed message queues remove operational toil and let your team focus on business logic.
- Use IaaS for lift and shift, legacy and tightly controlled workloads. Some BFSI core systems and SAP estates still need the control IaaS provides.
- Match shared responsibility to your team's depth. Smaller teams should lean toward PaaS and SaaS. Engineering rich teams can extract more value from IaaS.
- Validate DPDP and RBI posture at every layer. SaaS contracts in particular need careful review of data residency and breach notification clauses.
How Opsio helps
Opsio operates across IaaS, PaaS and SaaS for Indian enterprises. We help BFSI customers run regulated workloads on IaaS, ITeS firms build cloud native platforms on PaaS, and manufacturing customers integrate their SaaS estate cleanly with hyperscaler data services. See our managed cloud services India pillar and our managed cloud services page, or talk to us via the India contact page.
Frequently asked questions
Is PaaS more expensive than IaaS?
The headline price is usually higher because you pay for the managed runtime. But total cost is usually lower for PaaS once you account for the engineering effort, patching and on call burden of running the same workload on IaaS.
How does shared responsibility work across these models?
In IaaS you are responsible for everything from the OS up. In PaaS the provider handles OS and middleware, you handle code and data. In SaaS the provider handles almost everything, you handle configuration, identity and data classification.
Are all SaaS apps DPDP compliant?
No. DPDP compliance depends on how the SaaS vendor handles personal data, where they store it and how they respond to breach and rights requests. Always validate contractually before signing a SaaS deal.
Can I mix IaaS, PaaS and SaaS in the same architecture?
Yes, and most Indian enterprises do. A typical architecture combines SaaS for CRM, PaaS for the data platform and IaaS for the regulated core application, all integrated through APIs and event streams.
How does this fit with serverless?
Serverless is a deeper form of PaaS where you do not manage capacity at all. AWS Lambda, Azure Functions and Google Cloud Run are common examples. Use it for event driven workloads and short lived tasks where elasticity matters.
Written By

Country Manager, Sweden
Johan leads Opsio's Sweden operations, driving AI adoption, DevOps transformation, security strategy, and cloud solutioning for Nordic enterprises. With 12+ years in enterprise cloud infrastructure, he has delivered 200+ projects across AWS, Azure, and GCP — specialising in Well-Architected reviews, landing zone design, and multi-cloud strategy.
Editorial standards: This article was written by cloud practitioners and peer-reviewed by our engineering team. Content is reviewed quarterly for technical accuracy and relevance to Indian compliance requirements including DPDPA, CERT-In directives, and RBI guidelines. Opsio maintains editorial independence.