The shared responsibility model told you who owns each layer. The service model tells you how high in the stack the provider's responsibility goes by default. Picking a service model is the single biggest decision you'll make in a cloud project — it determines how much you control, how much you have to operate, and how the cost curve looks at scale.
NIST SP 800-145 formally defines three service models: IaaS, PaaS, SaaS. The industry has since added a fourth that NIST didn't anticipate — FaaS, the serverless function model — which behaves like an extreme version of PaaS. All four show up in real architectures, and most enterprises run a mix.
The four models, in detail
Click each model to see what you control, what you give up, real provider examples, and where security responsibility sits by default.
You control
Provider runs
Real-world examples
Best for · Watch out for
Where each model wins
There is no universally "best" model. They sit on a spectrum from maximum control at the IaaS end to maximum convenience at the SaaS end. Pick the rightmost option that still gives you the control your problem actually needs.
The security boundary
Each service model draws the provider/customer security boundary at a different layer in the stack. The further "up" the model abstracts, the less surface area you operate — but the more you depend on the provider's security and the less visibility you have when something goes wrong.
When to pick what
Three rough rules cover most real decisions:
1. Pick the rightmost model that still gives you the control you need. If SaaS does the job, use SaaS. If you actually need to tune the JVM heap, that's a PaaS or IaaS conversation. Most "we need IaaS for control" arguments turn out, on inspection, to be PaaS workloads with extra ceremony.
2. Match the cost curve to the load shape. Steady high load → IaaS with reserved instances is cheapest. Spiky low-baseline load → FaaS pays for itself by charging zero at idle. Predictable mid-load with a small team → PaaS gets you out of the patching business. A bunch of seats using a standard tool → SaaS is the right answer 99% of the time.
3. Be honest about your team's operational capacity. IaaS requires an SRE or platform team. PaaS requires application engineers who understand the platform's quirks. FaaS requires people who can debug distributed event-driven systems. SaaS mostly requires administrators. None of these are free; they just shift where the headcount lives.
Service models are about where the line of responsibility goes. IaaS gives you the most stack to control and the most stack to defend. SaaS gives you the smallest stack to operate and the smallest stack you can see into when things go wrong.
Most cloud projects use two or three models simultaneously: an IaaS-hosted legacy system, a PaaS database, FaaS for the event-driven glue, and SaaS for everything that isn't differentiating. The skill is knowing which workload belongs in which model — not picking one and using it for everything.
Default to the right. Use SaaS where you can, FaaS where you should, PaaS where you must, and IaaS where you have no choice.
References
Formatted in APA 7. Pattern: Author(s). (Year). Title (Identifier). Publisher. URL. Alphabetized by first author's last name.
- Amazon Web Services. (n.d.). Types of cloud computing. https://aws.amazon.com/types-of-cloud-computing/
- Barron, A. (2014, July 30). Pizza as a service [LinkedIn post]. LinkedIn. https://www.linkedin.com/pulse/20140730172610-3993265-pizza-as-a-service/
- Cloud Native Computing Foundation. (2022, April 29). CNCF serverless overview 2.0. https://www.cncf.io/blog/2022/04/29/cncf-serverless-overview-2.0/
- Google Cloud. (n.d.). What is IaaS? https://cloud.google.com/learn/what-is-iaas
- Mell, P., & Grance, T. (2011). The NIST definition of cloud computing (NIST Special Publication No. 800-145). National Institute of Standards and Technology. https://doi.org/10.6028/NIST.SP.800-145
- Microsoft. (n.d.). What is IaaS? Azure cloud computing dictionary. https://azure.microsoft.com/en-us/resources/cloud-computing-dictionary/what-is-iaas/