IaaS: Powering the Future of Cloud Computing
In an era where digital transformation is no longer optional, businesses are increasingly turning to cloud computing to drive innovation, enhance scalability and optimise costs.
Among the various cloud models, Infrastructure as a Service (IaaS) has gained prominence in recent years, offering unparalleled flexibility and scalability. The IaaS market is witnessing explosive growth – with revenue projected to hit US$183.50bn this year and grow to US$461.90bn by 2029 – driven by trends such as artificial intelligence (AI) integration, edge computing and the rise of multi-cloud strategies.
As businesses seek to optimise costs, enhance agility and drive innovation, IaaS presents a compelling solution. This shift is reshaping not just IT departments, but entire business models, enabling companies to respond swiftly to market changes and customer demands.
IaaS and the cloud computing landscape
At its core, IaaS is a cloud computing model that provides virtualised computing resources over the internet. Nick Drouet, CTO at Kyndryl UK&I, boils it down: “Infrastructure as a Service (IaaS) is a cloud computing model providing virtualized resources like virtual machines, storage and networking on a pay-as-you-go basis.”
To grasp the concept of IaaS, it's essential to understand how it differs from other cloud computing models, namely Platform as a Service (PaaS) and Software as a Service (SaaS). Mallory Beaudreau, RVP – Account Management EMEA at Apptio, provides an insightful analogy.
"If we think of cloud computing like renting a house, IaaS is like renting your home unfurnished, giving you full flexibility to use it as you wish,” she explains. “PaaS, on the other hand, is like renting a part-furnished house, so you still have access to the space (or infrastructure) and all the major components, but you have some flexibility to use it as you wish. Lastly, SaaS differs in that it's like renting a holiday apartment; there are lots of options, but it's completely furnished and set up, so there's less to configure, and you have to operate in a very specific way that fits with that model."
IaaS offers the highest level of control and flexibility, allowing businesses to install, configure, and manage their own software on the provided infrastructure. PaaS simplifies infrastructure management, focusing on application development, while SaaS delivers fully managed software applications with minimal control over the underlying infrastructure.
“In SaaS models, subscribers don't manage the underlying infrastructure,” adds Liron Golan, Head of SaaS Portfolio Marketing for Nokia's Cloud Network Services division. “PaaS provides a platform for developing and deploying applications, including tools, libraries and runtime environments. PaaS customers manage the applications but not the underlying infrastructure.”
The business case for IaaS
The adoption of IaaS brings numerous benefits to businesses across various industries and sizes. One of the most significant advantages, Mallory emphasises, is the speed and agility it offers. “The most prominent advantage IaaS brings to businesses is speed. If a large organisation needs hardware to build a new product or expand into a new region, for example, they will have two options; either purchase the hardware or leverage IaaS.”
By eliminating the need for physical hardware procurement and setup, IaaS dramatically reduces the time to market for new products and services. This agility is crucial in today's fast-paced business environment, where the ability to quickly adapt to market changes can make or break a company's success.
Cost savings are another compelling reason for businesses to adopt IaaS, Liron explains, with the model enabling businesses to optimise their IT spending, paying only for the resources they actually use. “IaaS eliminates the need for upfront CapEx on hardware and reduces operational costs like maintenance and energy consumption.”
The scalability offered by IaaS is particularly beneficial for businesses with fluctuating workloads. Nick notes: “For small businesses, IaaS removes the need for sizeable upfront capital investments in hardware and infrastructure, allowing them to scale their resources according to demand and only pay for what they use.”
This scalability is not just beneficial for small businesses. Large enterprises can leverage IaaS to support the deployment of large-scale, mission-critical applications. Industries such as healthcare, finance and retail can benefit from the robust security measures and compliance support provided by IaaS providers, ensuring that sensitive data is protected in line with industry standards.
“Cloud providers offer robust security measures and regular updates,” Liron adds, “reducing the risk of security breaches and data loss.”
Navigating the challenges of IaaS migration
While the benefits of IaaS are clear, migrating to this model is not without its challenges. Organisations must carefully consider and address these challenges to ensure a successful transition.
One of the primary challenges is the mindset shift required when moving from traditional IT systems to the cloud. Mallory explains: “Cloud is flexible and dynamic, but traditional IT was not as adaptive, and this will involve a mentality shift about how to respond to capacity demands.”
This shift in mindset extends to how businesses approach capacity planning. The traditional method of building for peak capacity is replaced by a more dynamic approach that adapts to changing demands. Mallory illustrates this with an example of a video streaming service: “The cloud allows you to build an application that adapts to capacity needs, so you can operate at low levels and turn up capacity as demand increases at peak times.”
Security concerns are another significant challenge in IaaS migration, Liron points out. “Migrating sensitive data to the cloud requires careful consideration of security measures and compliance regulations.”
Integration challenges can also arise when combining cloud resources with on-premises systems. Nick emphasises the importance of expertise in managing these challenges: “A deep understanding of infrastructure has ensured seamless interoperability and operational efficiency.”
The potential for vendor lock-in is another consideration.“Choosing a specific IaaS provider can lead to vendor lock-in, making it difficult to switch providers later,” Liron warns. To combat this threat, organisations should carefully evaluate their long-term needs and the flexibility offered by different IaaS providers before making a commitment.
Lastly, the skill gap presents a challenge for many organisations, and adopting IaaS models is no different. “Organisations may need to develop new skills and expertise to manage and operate their IaaS environment effectively,” Liron notes.
The future of IaaS: Emerging trends and innovations
As technology continues to evolve, so does the landscape of IaaS. Several key trends are shaping the future of this cloud computing model.
As Mallory observes, AI and Machine Learning (ML) are at the forefront of these trends, “In the coming months and years, generative AI (Gen AI) will still be at the centre of cloud conversations. The emergence of AI is dependent on access to the cloud, and as the AI market matures, we might see more PaaS and SaaS solutions develop around it.”
The integration of AI and ML with IaaS is opening up new possibilities for businesses. Nick notes: “IaaS platforms are integrating AI and ML services, facilitating data analysis and automation.” This integration is enabling businesses to leverage advanced analytics and automation capabilities without the need for significant upfront investments in AI infrastructure.
Edge computing is another trend that's gaining traction in the IaaS space. Liron explains, "IaaS is expanding to the edge, enabling data processing and application execution closer to users, reducing latency and improving performance." This is particularly crucial for applications that require real-time processing, such as Internet of Things (IoT) devices and autonomous vehicles.
Serverless computing is also emerging as a significant trend in IaaS. Liron notes, "IaaS providers are offering serverless computing services, allowing businesses to run code without managing servers, further reducing operational overhead." This approach allows developers to focus solely on writing code, without worrying about the underlying infrastructure.
The rise of multi-cloud and hybrid cloud strategies is another important trend. Nick observes, "Multi-cloud and hybrid strategies are popular to avoid vendor lock-in and optimise costs, prompting providers to enhance interoperability and management tools." This approach allows businesses to leverage the strengths of different cloud providers and maintain flexibility in their cloud strategy.
Sustainability is also becoming an increasingly important consideration in IaaS. As businesses become more conscious of their environmental impact, IaaS providers are focusing on improving energy efficiency and reducing the carbon footprint of their data centres. “Sustainability initiatives and advanced networking technologies like 5G are also improving performance and reliability,” Nick says.
Is IaaS right for your business?
Infrastructure as a Service has revolutionised the way businesses approach their IT infrastructure. It offers unprecedented flexibility, scalability and cost-efficiency, enabling organisations of all sizes to leverage enterprise-grade infrastructure without the need for significant upfront investments.
However, the decision to adopt IaaS should be carefully considered. While the benefits are substantial, the challenges of migration, security concerns, and the potential for vendor lock-in need to be addressed. Organisations must also consider their specific needs, existing infrastructure, and long-term IT strategy when evaluating IaaS adoption.
As Mallory puts it: “IaaS ensures companies can leverage the technology, including storage space and networks, without needing to purchase the tech, which drastically speeds up the process, cutting out the need for physical delivery.”
With the continuous evolution of IaaS, driven by trends like AI integration, edge computing, and serverless architecture, the future of this cloud computing model looks promising. As businesses continue to digitise and seek more flexible, scalable IT solutions, IaaS is poised to play an increasingly crucial role in shaping the future of enterprise IT infrastructure.
Whether you're a small startup looking to minimise upfront costs or a large enterprise aiming to enhance agility and innovation, IaaS offers a compelling solution worth considering in your cloud strategy. In the words of Nick: “IaaS offers flexible scalability, substantial control over operating systems and applications and cost efficiency, making it ideal for businesses seeking extensive customisation and control over their infrastructure.”
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