About IaaS:

Companies traditionally met their growing IT needs by investing in more capital equipment. Today, despite growing number of users and applications, competitive pressures continue to demand improvements in quality of service.

At the same time, the challenging economic environment has increased pressure on IT departments to keep the costs down. The convergence of those trends has made it possible to take infrastructure outsourcing to a new level.

Building on the foundation of managed services such as offsite backup, managed mail hosting, and virtualization services, IaaS has emerged as an easily deployed service that enables companies to flexibly and cost-effectively anticipate and evolve with their customers' rapidly changing business requirements.

Allows IT to Shift Focus

• With the availability of IaaS services, it frees an organization to leverage and focus their time and resources in bringing innovations in applications and solutions

Hassle free service

• Each infrastructure component is provided as a service. This adds lot of flexibility to anyone looking for only specific services.

Utility Service

• IaaS follows a utility service model – pay per use / pay as you go subscription based model. This is hallmark of cloud services.
• One uses the services based on the requirement and as long they are required. The ready to go aspect is also of great importance and can benefit firms in reaching their products and services to market quickly and easily.

Dynamic scaling

• Scales up and down of Infrastructure services based on the application usage, best for the applications where there are significantly spikes and troughs on the usage of infrastructures.
• IaaS services can be quickly scaled up in case of upturn in demand and scaled down when there is low demand. This adds enormous flexibility and optimal utilization of resources and money.

Investment Cap

• More beneficial for companies with limited capital to invest in hardware and infrastructure. Most Small and Medium businesses cannot afford the upfront cost of their IT infrastructure as they want to focus more on their product offering / core business.
• IaaS is a great choice - with no upfront investment, no maintenance and pay as you go.
  

Reduces TCO (Total Cost of Ownership)

• Changes the cost from Capital expense (Capex) to Opex (Operational expense) for an enterprise. No need to buy an asset to use that asset and reduces other related costs of maintenance and support.

Metered Service

• IaaS usage is metered and priced on the basis of consumed. Pay for what you use and when you use. Thus, if your usage is low so will be your bill. This is in contrast to infrastructure owned by a firm where there will be fixed costs (people, servers, storage, power, etc.) in spite of low or high usage.

Enables Green IT

• Reduced environment effect with optimum use of IT resources and systems, hence adds to the Green IT initiatives for an organization.