SaaS, PaaS and IaaS
a.k.a. "The Cloud"

Cloud Computing has three different segments: Software as a Service (Saas), Platform as a Service (PaaS) and Infrastructure as a Service. SaaS is the largest segment that is composed of hosted software applications. SaaS has evolved to almost a $20B industry. PaaS provides service and management tools from the cloud and has evolved to nearly a $9B industry. IaaS is the newcomer composed of things like hosted storage, on-demand databases and on-demand scalable or "elastic" computing power. In IaaS is estimated to grow to a $2B industry by 2012. (source - Bessemer Venture Partners - Top 10 Laws of Cloud Computing and SaaS)

SaaS Keeps Your Technical Team Customer Focused

A technical team may be great at setting up servers and installing software but they are far too valuable to spend most of their time maintaining hardware, software, doing detailed capacity planning and optimizing data centers. Their talents can be better applied by selecting and turning on cloud applications that best enable the company to focus on and serve its customers.

Widely Deployed, Best in Class Solutions

The pace of software technology is changing so quickly that it is often hard for a company to keep up. The company is better off not maintaining software and instead choosing what it needs from the cloud, paying for what it uses and being able to switch to a new vendor in the cloud to meet changing requirements.

On Demand Scalability

Today's applications need to scale from one person to hundreds and even thousands. This scaling along with the growing computing power requirements for analytics means that most of the time an in-house investment will be highly underutilized. During sporadic and unplanned periods of high demand the computing power will not be enough. Simply put - there is no practical model to efficiently maintain the correct amount of in-house computing power needed for today's applications.

The Economics of The Cloud

In nearly every phase of Information Technology Cloud Computing hardware and software solutions are the clear economic winner. One of the core reasons is because traditional enterprise IT asset utilization is 5-20%.

All that capital investment and operating cost is spent by companies to have the remaining 80 -95% available for only a few peak times every year. On a global scale just imagine how much energy this is wasting. Cloud based services are sold on a pay for what you use basis. Hardware services are now becoming elastic and scale on demand for those few peak times every year - even with hardware you can now only pay for that infrastructure when you need it.

The economics of power efficiency, personnel, security and supply chain management are all greatly improved for companies who are moving to the cloud.

Federal Agencies Implement
'Cloud First' Policy

The 25-Point Plan mandates that each Federal agency within three months identify three "must move" IT services and move one of those services to the cloud within 12 months. The remaining services should transfer to the cloud within the next 18 months.
This 2011 Federal policy cites examples like this: In the private sector, a web-based multimedia production company used the cloud... The cloud allowed for a rapid response when demand jumped from 25,000 users to more than 250,000 users in three days. In contrast, the Federal Government’s Car Allowance and Rebate System (CARS, more commonly known as “Cash-For-Clunkers”) failed when faced with peak loads.
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