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Enterprise App StoreUnderstand the differences between cloud computing service models and discover which one best fits your business needs.
Cloud computing and ‘as a service’ technology has become integral to modern businesses and governments, offering flexibility, efficiency, and scalability. Three primary cloud models dominate today's digital landscape: SaaS, PaaS, and IaaS.
In this article, we break down the key differences between each model to help you choose the one that best fits your organisation’s needs.
‘As a service’ explained
The term ‘as a service’ has become a defining feature of modern digital life. As a service refers to the delivery of computing resources, platforms, and applications over the internet. Rather than building and maintaining everything in-house, organisations can access software, development tools, and infrastructure through third-party providers.
And it’s not just for big organisations either. Most of us use ‘as a service’ tech daily, often without even realising it. From the music and content, we stream, to the food we order, to the apps we use to remind us to exercise, many of the services we use every day are delivered through subscription-based, on-demand models, without requiring us to own or manage the underlying systems themselves.
What is SaaS?
Software as a Service (SaaS) is a cloud-based service that allows users to access software applications hosted online, eliminating the need to install software locally. SaaS providers manage infrastructure, maintenance, and updates, enabling users to access applications via a simple subscription model.
SaaS is the most common of the three in this article, as the chances are you use a SaaS platform every day. Applications on your phone or laptop that you use regularly, such as your email or cloud file storage, are examples of SaaS.
TechnologyOne is also an example of SaaS, although we do things a little different here thanks to SaaS+, which we’ll explain a little further down.
Main benefits of SaaS
SaaS offers several compelling benefits for organisations looking to streamline their operations and reduce IT overheads, like:
- Rapid deployment: Quick to implement with no need for physical installations.
- Scalability: Easily scales with your business growth.
- Lower costs: Reduces upfront capital costs and ongoing IT maintenance costs.
- Accessibility: Accessible from any internet-connected device, enabling remote and hybrid work.
- Automatic updates: Providers manage updates and security patches, ensuring continuous improvement and security.
By outsourcing infrastructure and software management to the provider, businesses and governments can focus on the more important things without being burdened by ongoing system maintenance.
What are the benefits of using an ERP system?
Explore the key benefits of ERP software, from cost savings and productivity to sustainability and compliance. Learn how ERP drives digital transformation.
Learn moreWhat is PaaS?
Platform as a Service (PaaS) provides a cloud-based platform that enables developers to build, test, deploy, and manage applications without managing the underlying infrastructure. PaaS simplifies the development process, allowing developers to focus purely on the creative and functional aspects of application development.
Common examples of PaaS solutions you might be familiar with include Microsoft Azure, SalesForce, Google App Engine etc.
Main benefits of PaaS
PaaS offers developers and businesses several advantages, particularly when it comes to building and managing applications without dealing with hardware or infrastructure. These benefits are mainly:
- Increased efficiency: Faster application development and reduced coding time.
- Cost savings: Eliminates infrastructure costs associated with application development.
- Collaboration: Improved collaboration through shared platforms for development teams.
- Simplified management: Managed infrastructure simplifies ongoing application management.
What is IaaS?
Infrastructure as a Service (IaaS) delivers virtualised computing resources over the internet. It provides businesses with foundational components like servers, storage, and networking resources, letting them control and manage their infrastructure remotely without owning physical hardware.
IaaS platforms are usually pay-as-you-go, rather than subscription based like SaaS, meaning you’ll only need to pay for what you use. This can be both a positive and a negative, depending on the circumstances.
Popular examples of IaaS are the likes of Amazon Web Services (AWS), IBM cloud, Google Cloud Platform (GCP) etc.
Main benefits of IaaS
IaaS is ideal for businesses that need flexible and controllable infrastructure. Benefits often include:
- Flexibility: Easily adaptable to changing business demands.
- Cost-effective: Pay-as-you-go pricing models can reduce costs.
- Control: Offers complete control over infrastructure, including operating systems and configurations.
- Scalability: Rapidly scalable to handle varying workloads.
How does ERP factor into it?
Enterprise Resource Planning (ERP) systems are comprehensive software platforms that integrate core business functions such as finance, supply chain, human resources, and asset management. ERP solutions support informed decision-making, improve operational efficiency, and centralise data for greater visibility and control.
ERP can be delivered through all three cloud service models - SaaS, PaaS and IaaS - depending on the organisation's needs and IT maturity:
- SaaS ERP is a fully managed solution ideal for organisations that want to eliminate the burden of software maintenance and infrastructure management.
- PaaS ERP allows for more custom development on top of an existing platform, giving developers the flexibility to extend ERP functionality.
- IaaS ERP enables organisations to host and manage their own ERP software on virtual infrastructure, offering maximum control but requiring internal IT expertise.
Choosing the right model to deploy ERP software depends on factors such as IT resourcing, budget, integration needs and appetite for customisation.
How to Successfully Implement an ERP System
Discover the key ERP implementation stages, strategies, and steps to ensure a smooth transition. Learn best practices for a successful ERP system rollout.
Learn moreSaaS vs PaaS vs IaaS: Key differences explained
Understanding the differences between SaaS, PaaS, and IaaS is crucial when selecting the proper cloud service model. These differences primarily involve levels of control, flexibility, management responsibilities, and costs.
In the table below is a clear comparison of the pros and cons of each to help guide your decision.
SaaS, PaaS & IaaS: Pros and cons summarised
| Model | Pros | Cons |
|---|---|---|
| SaaS | ||
| PaaS | ||
| IaaS |
So, which is right for you? SaaS, PaaS, or IaaS?
Choosing between SaaS, PaaS, and IaaS depends on your organisation’s needs, technical capability, and future goals. Each model serves a distinct purpose and is suited to different operational challenges.
IaaS is usually ideal for organisations with strong internal IT teams that want full control over infrastructure. It supports highly customised environments and legacy applications that can't easily migrate to higher-level services.
Meanwhile, PaaS tends to work well for development-focused organisations that need a flexible, scalable platform to build, test and deploy applications. It simplifies the development process by removing the need to manage servers and hardware.
But SaaS could well be the best of the three, as it offers a complete, ready-to-use software solution managed entirely by the provider. It's the most accessible choice for organisations that want fast deployment, reduced IT burden and lower operating costs.
Research from IBRS and Insight Economics - commissioned by TechnologyOne - found that replacing legacy on-premise software with next-gen SaaS could unlock $252 billion in economic savings for Australia over the next decade. These savings are driven by reduced total cost of ownership and improved labour productivity, with flow-on benefits across every state and sector.
For many organisations, the scale and simplicity of SaaS make it the most strategic choice for long-term value.
How SaaS+ Works
Learn how TechnologyOne’s SaaS+ ERP solution accelerates implementations. Reduce risk and enhance outcomes with one unified approach. Book a demo today!
Learn moreSaaS+ explained
SaaS+ is TechnologyOne’s next-generation cloud offering, designed to go beyond the traditional SaaS model and meet the complex demands of enterprise and government organisations. It’s a fully managed service but with an added layer of control, security, and performance tailored for the industries we serve.
Because SaaS+ is built on the Power of One - one vendor, one platform, one experience, and one line of code - organisations benefit from a single, consistent interface, streamlined support, and a fast path to innovation. This model is ideal for those who need enterprise strength with none of the overheads.
The Power of One is one of TechnologyOne’s core beliefs, and it’s what we are known for.
We do not accept the normal way of doing things: we have a singular source of vision, development, implementation, sales, and support, and take full responsibility for the complete outcome of the solution experience - not just the software.
SaaS+ leverages the Power of One and is a true symbiotic partnership with our customers.
Ready to experience the Power of One?
Unlock the full potential of TechnologyOne’s unique SaaS+ model, which is the world’s first fully integrated ERP solution designed to deliver outcomes faster, simpler, and with lower risks.
Contact our team or book a demo today to discover how SaaS+ can transform your organisation.
Book a demoSaaS FAQs: TechnologyOne
Read some of our most frequently asked questions (FAQs) about all things SaaS, ERP and more below.
TechnologyOne is Australia’s leading enterprise software company, offering a suite of SaaS solutions that help organisations simplify and streamline their operations. Since 1987, we’ve been developing and supporting integrated enterprise software used by more than 1,300 organisations across government, education, health, and the private sector.
Our deeply integrated solutions manage critical business functions such as finance, human resources, asset management, and more.
SaaS ERP (Software as a Service Enterprise Resource Planning) refers to ERP software delivered over the internet via a cloud-based subscription model. Unlike traditional ERP systems, SaaS ERP removes the need for organisations to own, host or manage the infrastructure and software themselves.
With TechnologyOne SaaS+, your ERP solution is always up to date, secure, and accessible anywhere from any device.
ERP software is used to manage and integrate an organisation’s core business functions within a single, unified platform. At TechnologyOne, we offer powerful, industry-specific ERP software with the following essential product integrations:
- App Builder
- Business Analytics
- Corporate Performance Management
- Enterprise Asset Management
- Enterprise Budgeting
- Enterprise Cash Receipting
- Enterprise Content Management
- Financials
- Human Resources & Payroll
- Performance Planning
- Property & Rating
- Spatial
- Student Management
- Supply Chain Management
- Timetabling & Scheduling
SaaS certification generally refers to formal validation or accreditation that a SaaS provider meets specific standards for security, reliability, and service delivery. TechnologyOne maintains robust SaaS certifications including ISO 27001 for information security, ISO 27017 for cloud security, and ISO 27018 for personal data protection.
SaaS+ is TechnologyOne’s enhanced version of traditional Software as a Service. While both models deliver cloud-based software through a subscription, SaaS+ offers an enterprise-strength, fully managed environment with deeper integration, higher performance, and greater security.
SaaS+ is backed by TechnologyOne’s Power of One’ approach - one vendor, one platform, one experience, and one line of code - providing customers with a seamless experience, faster outcomes, and reduced risk.
Our SaaS+ platform delivers purpose-built functionality for the following industries:
And more.
