The Different Types of Cloud Computing

Part One in a three-part series

By Jonathan Victor, VP – Operations, Oceanwide

Montreal, QC (Mar. 8, 2013) – One of the transformational concepts sweeping the software world is that of Cloud Computing. “Software in the Cloud” is an expression being heard with increasing frequency as companies in every industry move to adopt a delivery model which is more cost efficient than traditional software delivery models. Cloud computing is now seen as a safe and secure option to enable business and IT to focus on core competencies.

But what exactly does “Cloud computing” mean and how is it transforming the ability to launch, maintain and expand software in ways not even conceived of a decade ago? This document describes three different types of Cloud computing:

Software as a service (SaaS)

Software as a Service is a delivery model where a company relies on an outside provider to deliver software solutions over the internet which users typically access through a web browser. This model allows the software to be easily and securely accessed from anywhere in the world without the traditional cost and time requirements to provision the remote connectivity and installation.

A consumption based fee structure is most frequently associated with SaaS solutions. This creates advantages over the deployed implementation as the initial costs are significantly reduced and the timeframe to deploy new significantly shortened. SaaS pricing models also reduce the financial risks associated with the software purchase by deferring fees until the implementation proves successful and by keeping internal IT costs to a minimum. The ROI calculations become easier with the SaaS model as the capital and operating costs can more easily be matched against the associated revenue streams. SaaS contracts are also typically of a shorter duration than traditional software and often come with early cancellation provisions. Finally, the SaaS model engenders a deeper partnership between vendor and customer as the financial interests of both are aligned to achieve a quick successful implementation.

Platform as a Service (PaaS)

Platform as a Service is a delivery model where the computing platform (network, servers, storage and other services) and solution stack are provided as a service. The infrastructure and development tools needed to build, test and run applications are delivered by the cloud provider over the Internet.

With PaaS, ISVs and corporate IT departments can focus on innovation instead of complex infrastructure. By leveraging the PaaS, organizations can redirect a significant portion of their budgets from “keeping the lights on” to creating applications that provide real business value.

Infrastructure as a service (IaaS)

Infrastructure as a Service is a model in which an organization outsources the equipment used to support operations, including storage, hardware, servers and networking components. The cloud service provider owns the equipment and is responsible for housing, running and maintaining it. The client typically pays on a per-use basis. One of the key advantages of IaaS is scalable growth without the need to buy new servers or hardware.

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About the Author

Jonathan Victor has over 10 years of experience in the fields of IT Consulting and Software Development at Oceanwide, and previously at Accenture. He has worked extensively with enterprise corporations and government organizations to plan, design and implement IT systems and has experience in the fields of Insurance, Telecommunications and Supply Chain.

About Oceanwide, Inc.

Oceanwide has been providing multi-line solutions to the global insurance industry for over 15 years. Its cloud based applications enable carriers, brokers and MGAs to get to market quickly and efficiently, enhance the customer and agent experience and provide access to new revenue generating opportunities. Oceanwide’s proven track record of successful implementations, unparalleled customer service and domain expertise provide a comprehensive solution to their clients and enable them to differentiate themselves from their competitors. Visit

Source: Oceanwide