What Is Infrastructure as a Service in Cloud Computing (And Why Businesses Should Care)

June 6, 2025

what is infrastructure as a service in cloud computing

You're not in IT. But you sure rely on it.

Every invoice you send, every call you take, every file you store—it’s all riding on digital infrastructure you didn’t build, can’t afford to babysit, and definitely don’t want crashing in the middle of a deadline.

The problem? Setting up and maintaining your own systems eats time, money, and peace of mind. And relying on band-aid solutions or outdated tools? It’s a ticking clock.

That’s where Infrastructure as a Service (IaaS) steps in.

You’ve likely heard terms like cloud computing, cloud service, or even platform as a service tossed around. But what is infrastructure as a service in cloud computing, and why should you, a business owner just trying to stay afloat, care?

Because it might be the difference between juggling tech chaos and running a business that just works.

[.c-button-wrap][.c-button-main][.c-button-icon-content]Contact Us[.c-button-icon][.c-button-icon][.c-button-icon-content][.c-button-main][.c-button-wrap]

Business owner reviewing cloud service dashboard on a laptop, evaluating infrastructure as a service solutions for better scalability and performance

Understanding cloud computing: A brief overview

Imagine never needing to buy another server. No more closets crammed with cables. No more scrambling to find someone who can fix your network when it breaks.

That’s the promise of cloud computing—accessing computing resources like storage, operating systems, and processing power over the internet instead of relying on expensive, aging on-premises infrastructure.

It’s not one-size-fits-all, either. There are different cloud service models, each built for specific needs:

  • Software as a Service (SaaS) delivers fully managed applications, like email or CRMs.
  • Platform as a Service (PaaS) gives developers a space to build apps without managing servers.
  • And then there’s Infrastructure as a Service (IaaS)—your business’s quiet powerhouse.

While SaaS and PaaS are more about what you can do, IaaS is about what you don’t have to do—because the cloud provider handles it for you.

This shift toward cloud-based infrastructure has become the norm, especially for businesses that want scalability without overcommitting. And in a world where flexibility is survival, the advantages of infrastructure as a service have never been more relevant.

What is infrastructure as a service (IaaS)?

Let’s break down the infrastructure as a service definition in simple terms.

IaaS is a cloud computing model that provides on-demand access to virtualized computing resources over the internet. Think of it as renting the foundation of your IT—servers, storage, networking resources, and operating systems—without having to buy or manage the actual hardware.

Instead of maintaining a physical data center, you access IaaS through a cloud service provider, which takes care of the underlying infrastructure, power, cooling, and even hardware failures. You still control your applications, your data, and your configurations—but someone else handles the heavy lifting.

A few examples of well-known IaaS providers include AWS, Google Cloud, and Microsoft Azure. But you don’t have to be a tech giant to use this kind of service. Many small to mid-sized companies are choosing IaaS platforms for the freedom, flexibility, and cost-efficiency they bring.

In short, IaaS enables you to skip the stress of building out an IT backbone from scratch. You get the cloud infrastructure you need to run your business, scale when it makes sense, and pay only for what you use.

That’s why this computing model that provides on-demand infrastructure is gaining traction in the modern business world—and why it may just be what your company has been missing.

Team of IT professionals configuring cloud-based infrastructure in a modern office to support hybrid cloud and traditional cloud models

Key features of IaaS every business should know

The beauty of IaaS isn’t just that it saves you from buying more hardware—it’s in the features that actually make running your business smoother, smarter, and far less risky.

Here’s what sets infrastructure as a service apart:

1. On-demand scalability

Whether you’re onboarding five people or fifty, IaaS makes it fast and seamless to scale resources up or down. No more waiting weeks to order and configure new physical servers. You get what you need, when you need it.

2. Pay-as-you-go pricing

Why buy the whole restaurant when you only need a meal? With IaaS, you’re only charged for the computing power, cloud storage, and virtual machines you actually use. It’s a smart financial move for growing companies.

3. Built-in disaster recovery and backup

Outages, human error, ransomware—it happens. But with built-in backup and recovery systems, IaaS gives you a fast way to restore your cloud computing infrastructure to a prior point in time, minimizing downtime and keeping your business moving.

4. Flexible development and testing environments

Test and development environments are no longer a luxury. IaaS gives your team room to innovate without disrupting your live systems. You can deploy, test, tweak, and repeat—all in a secure and cost-efficient space.

5. Virtualized computing across multiple servers

Behind the scenes, IaaS provides virtualized computing using high-speed networks and virtualized storage systems. This spreads your workload across multiple machines, reducing the chance of failure and increasing speed.

6. Enhanced cloud security

A trustworthy service provider manages not only the infrastructure but also the controls that keep your data safe, from cloud orchestration to cloud security protocols. It's protection without the overhead.

From simplified infrastructure management to improved business continuity, the advantages of infrastructure as a service go far beyond cost savings. It’s about giving you the freedom to stop worrying about tech—and start focusing on growth.

IaaS vs. PaaS vs. SaaS: What’s the difference?

If you've been researching cloud service models, chances are you've come across a few familiar acronyms: IaaS, PaaS, and SaaS. But what do they actually mean for your business, and how do you choose?

Let’s break it down:

Infrastructure as a Service (IaaS)

You rent the cloud-based infrastructure: servers, storage, networking, and operating systems. You manage the applications and data, while the cloud vendor takes care of the physical infrastructure. This model gives you the most control without the overhead of buying or maintaining hardware.

Use case: Great for businesses that want flexibility, need scalable IT infrastructure, or want full control over their systems without owning them.

Platform as a Service (PaaS)

You get everything in IaaS, plus tools for building, testing, and deploying software. Ideal for developers who want to focus on coding without managing the underlying infrastructure.

Use case: Businesses developing custom apps or web-based platforms without hiring a full IT team.

Software as a Service (SaaS)

You’re using ready-to-go apps—think Gmail, Dropbox, or Microsoft 365. No need to install, update, or maintain anything.

Use case: When you just need a tool to work without technical headaches.

Why businesses should care about infrastructure as a service

Let’s be real, technology shouldn’t feel like a gamble. You want systems that work, scale, and keep your business protected. That’s exactly why understanding what infrastructure as a service is in cloud computing is worth your time.

Because right now, you might be:

  • Spending too much to manage infrastructure you barely understand
  • Losing sleep over potential data loss or downtime
  • Wasting hours waiting on sluggish systems or dealing with surprise outages
  • Holding back growth because scaling your setup is complicated or expensive

Here’s where IaaS helps.

It gives you a way to expand your computing infrastructure without hiring a full IT team. You can launch new projects, support hybrid teams, or respond to sudden demand—all without reworking your entire tech stack.

And when it comes to security? You're not flying blind. With the right Infrastructure as a Service provider, you get enterprise-grade cloud security, constant monitoring, and built-in disaster recovery—things that would otherwise drain your budget if done in-house.

From high-performance computing needs to everyday workloads, IaaS supports agility. It keeps your team online, your tools running, and your customers happy—even if you're not sitting in a flashy office or tech hub.

Bottom line? Infrastructure as a service isn’t just for tech giants anymore. It’s for business owners who are tired of patchwork solutions, unexpected expenses, and stalled momentum.

Engineer managing data in a virtualized environment across multiple servers as part of a fully managed infrastructure solution

Is IaaS right for your business? Questions to ask before you decide

Choosing the right cloud computing model isn’t about jumping on trends—it’s about finding what actually works for your business. So before you start reaching out to Infrastructure as a Service providers, ask yourself:

1. Are we constantly upgrading or replacing hardware?

If your team’s stuck in a cycle of replacing physical infrastructure, IaaS makes sense. It shifts the responsibility—and the expense—to the cloud service provider.

2. Do we need to scale quickly (or seasonally)?

Whether you’re growing fast or dealing with seasonal spikes, IaaS enables you to scale resources on demand. No panic. No delays.

3. Is our current setup hurting productivity?

Slow systems, surprise downtime, or clunky remote access can drag your team down. Cloud infrastructure solves this by keeping tools and data available, no matter where people are working.

4. How secure is our business right now?

From virtualized computing resources to cloud storage and multi-layered backup and recovery, IaaS offers far stronger protection than most small in-house setups.

5. Are we trying to do too much internally?

Running a business is enough work. If managing the operating system, software patches, or virtual machines is eating into the time you should spend with customers, choose IaaS.

Final thoughts

There’s a reason more business owners are turning to IaaS platforms—and it’s not just because everyone’s talking about the cloud.

It’s because they’re tired of tech that breaks, systems that slow them down, and costs that spiral out of control. They want a better way to build, run, and scale—without getting buried in IT headaches.

And infrastructure as a service delivers that. From simplified infrastructure management to rock-solid business continuity, IaaS works behind the scenes to keep everything running without a hitch.

If you’re ready to stop patching together tech and start building something stronger, now’s the time.

At the heart of Chicago, Version2 brings enterprise-grade solutions to small and medium-sized companies that need stability, security, and room to grow.

[.c-button-wrap2][.c-button-main2][.c-button-icon-content2]Contact Us[.c-button-icon2][.c-button-icon2][.c-button-icon-content2][.c-button-main2][.c-button-wrap2]

Frequently asked questions

What is the infrastructure as a service definition in simple terms?

The infrastructure as a service definition is a cloud model that lets businesses rent essential IT elements—like servers, cloud storage, and networking—instead of owning them outright. It’s a flexible way to get the necessary computing infrastructure without the burden of buying or managing hardware.

How is IaaS different from other cloud service models?

There are three primary cloud service models: IaaS, PaaS, and SaaS. IaaS services offer the most control, allowing you to manage applications and data while the service provider handles the backend infrastructure. It’s ideal when you need customization and scalability, but not the hassle of maintaining your own on-premises data center.

What are some common use cases for IaaS?

IaaS use is popular among businesses that need scalable computing power, whether for hosting websites, supporting remote teams, or developing applications. It’s also great for companies with big data workloads, disaster recovery plans, or rapidly changing infrastructure needs.

Which IaaS providers are most popular for businesses?

Well-known IaaS providers include AWS, Google Cloud, and Microsoft Azure. These companies offer robust cloud resources, competitive uptime guarantees, and a global infrastructure footprint, making them top choices in the expanding IaaS market.

Is IaaS compatible with private, public, or hybrid cloud models?

Yes. IaaS models can be deployed using public cloud, private cloud, or hybrid cloud strategies, depending on your security, performance, and compliance needs. Businesses often choose a hybrid cloud setup to balance control with flexibility, especially when managing sensitive data alongside scalable workloads.

What kind of service level agreement should I expect with IaaS?

Most reputable IaaS providers offer a service level agreement (SLA) that defines uptime, support response times, and data handling commitments. A strong SLA ensures your infrastructure is reliable and meets the performance standards your business depends on.