Cloud Computing: Who Owns the Castles in the Sky? (I)

As the cloud market matures, there's going to be some level of switching costs for customers

Morningstar Equity Analysts 17 November, 2017 | 16:49
Facebook Twitter LinkedIn

Cloud computing has been a hot topic for years, but most companies are still in the early stages of adoption. As IT workloads shift to the public cloud over the next several years, opportunity abounds for infrastructure- and platform-as-a-service vendors, or IaaS and PaaS, respectively. To learn more about this space, Morningstar Equity Analyst Rodney Nelson, who is specializing in enterprise software to share his views on the cloud market trends.

Many of us are most familiar with software as a service, or SaaS. How do the platform and infrastructure as a service markets relate?

Rodney Nelson: The difference between SaaS and PaaS and IaaS is all about who is managing which part of the software and hardware stacks. With SaaS, a single vender, such as Salesforce.com, manages the entire software stack, including the physical server, the database, the operating system, the middleware, the bins, the libraries, and the underlying code for the application itself.

With PaaS and IaaS, the customer has more ability to customize. With IaaS, the only thing that the cloud vendors do is manage the core compute and storage services. They have data centers spread across the globe of homogenous hardware that is providing on-demand compute and storage technologies for companies to build and run software on. The beauty of that is the customer only pays for the amount of compute and storage that it actually uses, whereas in an on-premise environment you have to pay for the cooling, the heating, and so on, 24/7/365.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free
Facebook Twitter LinkedIn

About Author

Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.

© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy