Cloud computing explained simply: SaaS, PaaS, IaaS

Javier Garcia
How can I support you?

Javier Garcia
Senior Cloud Computing Engineer

+41.. Show number +41 55 253 00 53

Cloud computing is not just a cost factor, but a strategic decision in which SaaS, PaaS, and IaaS determine competitiveness, speed of innovation, and data sovereignty.

What you should know:

  • The choice between SaaS, PaaS, and IaaS is less about technology and more about how independent, adaptable, and future-proof your company remains.
  • In Switzerland in particular, compliance and data storage location are just as important as scalability and performance.
  • The most successful companies combine cloud models in a targeted manner, creating hybrid architectures that reduce costs and accelerate innovation.

Frequently asked questions

  • When is IaaS more useful than on-premise?

    IaaS is worthwhile if you need flexibility and scalability, want to avoid hardware costs, and don't want to make any upfront investments in data centers.

  • Is SaaS compliant with data protection regulations in Switzerland?

    Yes, provided that the SaaS provider stores data in certified data centers within Switzerland or the EU, offers reliable encryption and access controls, and complies with GDPR/Swiss data protection law.

  • What do I need to pay particular attention to when migrating from on-premise to the cloud?

    First, choose less critical systems, analyze dependencies, plan data migration and downtime, automate deployment pipelines, and test extensively.

  • How much does cloud computing cost compared to on-premises?

    The costs are variable. SaaS is usually billed per user, IaaS according to resource consumption. On-premises requires high initial investments, while the cloud is flexibly scalable.

  • When does a hybrid cloud approach make sense?

    When certain systems must remain on-premises for compliance reasons, while other applications can be operated more flexibly and cost-effectively in the cloud.

  • Which cloud solution is right for an SME?

    Many SMEs start with SaaS for standard tools and later expand with PaaS or IaaS as soon as they want to run their own applications or more complex systems.

  • How long does a cloud migration take on average?

    That depends on size and complexity. Small SaaS migrations can be completed in a matter of days, while larger ERP systems or IaaS environments can take several months.

Understanding cloud computing: SaaS, PaaS, and IaaS compared

Cloud computing is an essential element of digital transformation, enabling companies to drive their digital transformation forward efficiently. Imagine having access to a flexible and scalable IT infrastructure that allows you to use resources such as computing power, storage, and applications via the internet.

With cloud computing, you can optimize your business processes by responding quickly to changing requirements. You only pay for the resources you actually use and can easily adjust them as needed. This means you don’t have to make large investments and still have a powerful IT infrastructure at your disposal.

What is cloud computing?

Cloud computing means that IT resources are no longer operated locally but are provided via the internet. Instead of purchasing their own servers, software, or platforms, companies rent them flexibly from a cloud provider.

The most important models are:

  • SaaS: complete software solutions from the cloud
  • PaaS: development and operating environments for your own applications
  • IaaS: basic infrastructure such as servers, storage, or networks
Model
Use
Advantages
Challenges
SaaS
End users (e.g., CRM)
Ready to use immediately, low IT costs
Little customization, vendor dependency
PaaS
Development teams
Fast deployment, high scalability
Less control, vendor lock-in possible
IaaS
IT departments, DevOps teams
Maximum flexibility, full control, pay-as-you-go
Security responsibility, cost management required

Cloud services in Switzerland

Investment in cloud services is growing rapidly in Switzerland. According to a forecast by MSM Research AG, the cloud market will grow strongly until 2025. In 2022, a total of CHF 3,341.6 million was invested in cloud services. Of this, CHF 1,251.1 million was spent on software as a service (SaaS), CHF 804.9 million on platform as a service (PaaS), and CHF 1,285.6 million on infrastructure as a service (IaaS).

By 2025, investments will grow to an impressive CHF 5,381.3 million. SaaS is expected to account for CHF 1,196.3 million, PaaS for CHF 1,050.1 million, and IaaS for CHF 1,527.5 million. These figures illustrate how rapidly the importance of cloud solutions is growing for Swiss companies.

On-premise vs. cloud

On-premise systems are operated in the company’s own data center. This means full control, but also high investments in hardware, maintenance, and personnel.

Cloud solutions, on the other hand, offer flexibility, scalability, and lower entry costs, but less control and dependence on external providers.
On-premise vs. cloud

What should companies look out for when integrating the cloud?

To truly understand cloud computing, you need to go beyond the usual definitions of SaaS, PaaS, and IaaS. Technical aspects that determine the success or cost explosion of many projects are crucial:

  • Virtualization and containerization determine how flexibly workloads can be moved.
  • Multi-cloud and hybrid strategies determine reliability and independence from providers.
  • Security architectures with zero trust, encryption, and clear access rights are important for compliance in regulated industries.

Cost traps often arise when instances are incorrectly dimensioned or data is outsourced in an uncontrolled manner. Those who take these factors into account do not make cloud decisions based on gut feeling, but with a clear, long-term strategy.

Case Study: Secure Cloud Infrastructure for TTP Consulting

Case Study: Secure Cloud Infrastructure for TTP Consulting
  • 1 Project Overview

    TTP Consulting is a Swiss consulting firm for financial service providers with the highest requirements for data protection and regulatory security. The existing application suite was relocated from an EU data center to an Azure cloud environment in Switzerland. The goal was to build the infrastructure and platform in such a way that stability, maintainability, and future-proofing were guaranteed.

  • 2 Challenge

    The previous on-premise setup was maintenance-intensive and tied up valuable resources. Updates, backups, and administration were entirely the responsibility of TTP, increasing operational risk. At the same time, regulatory requirements demanded a clear data location in Switzerland, while technical development depended on individuals.

  • 3 Solution

    TTP chose soxes for a lift-and-shift to the Azure Cloud. The applications were containerized and redeployed on Kubernetes, databases were migrated, and a secure, scalable platform environment was set up. This created an infrastructure that combines IaaS and PaaS advantages: full control over data location and security, coupled with automated operation, monitoring, and centralized deployment.

  • 4 Result

    By moving from on-premises to the cloud, TTP has taken a step toward a modern form of operation. All data is now guaranteed to be stored in Switzerland, and the risk of failure and manual effort have been significantly reduced. The cloud infrastructure offers scalability, high stability, and a basis for future developments.

Developing with KUBE-X

Our development plattformKUBE-X is based on over 20 years of experience in customised software development and is based on technologies and processes that sustainably improve software development. KUBE-X was developed specifically for the development of enterprise software. This innovative development platform offers numerous advantages and is ideal for development on cloud computing services.

On-premise and the advantages of KUBE-X

While on-premise solutions generally require high initial investment and operating costs, KUBE-X can reduce costs and simplify setup through its standardised architecture and ability to run on existing hardware.

SaaS and the benefits of KUBE-X

KUBE-X can be used to develop SaaS applications, drastically reducing development time and costs through pre-built components and automation.

IaaS and KUBE-X

KUBE-X supports IaaS through Infrastructure as Code libraries that simplify and automate the provision and management of cloud resources.

KUBE-X as a platform for PaaS solutions

With its Continuous Integration and Continuous Deployment (CI/CD) features, in-built security features and support for various databases and event bus systems, KUBE-X provides a solid platform for developing and hosting PaaS solutions.

Why is KUBE-X ideal for cloud technology?

KUBE-X is particularly advantageous because of its flexibility and adaptability to different environments, be it on-premise, SaaS, IaaS or PaaS. It integrates modern security practices, supports rapid development through low-code/no-code approaches and promotes reusability and standardisation, making it a cost-effective solution.

Based on the needs and requirements of your business, KUBE-X can be deployed in various scenarios to minimise development costs and maximise operational efficiency. For organisations that require rapid scaling and flexible application development, the use of KUBE-X is particularly recommended in cloud-based IaaS or PaaS environments.

Vorteile von KUBE-X, Englisch

KUBE-X as a driver of innovation

Start-ups that require fast iterations and an agile development environment benefit from KUBE-X, as the platform enables rapid customisation and prototyping through low-code/no-code components.

Companies with strict security requirements

Financial institutions and healthcare providers that have stringent privacy and security requirements can benefit from KUBE-X’s robust security features, including automated penetration testing and continuous security updates.

Large enterprises modernising legacy systems

KUBE-X can be used to transition existing legacy systems to more modern, flexible and scalable architectures, reducing total cost of ownership and improving system efficiency. Take a look at our Slice & Dice process and find out how we modernise your business software step by step. Without BIG BANG.

Companies that pursue a multi-cloud strategy

KUBE-X facilitates the management of multi-cloud environments through its unified platform that enables seamless interactions between different cloud providers.

Integration of modern security practices

KUBE-X is designed from the ground up with a focus on security. The platform utilises zero-trust design principles and performs regular security audits to ensure that all applications and data are protected at all times. KUBE-X integrates compliance checks directly into the development pipelines to ensure that all code and development fulfils regulatory requirements before going into production.

Fast development through low-code/no-code approaches

With the CRUD Builder, KUBE-X enables developers to create application prototypes quickly and efficiently. Azure Logic Apps extend this capability by integrating pre-built workflows and automation features that allow non-developers to implement complex business processes. By reducing the need to write code from scratch, KUBE-X’s low-code/no-code capabilities significantly shorten development times, enabling faster feedback and iterations.

Why develop in the cloud?

Choosing to develop in the cloud offers your organisation three key benefits: scalability, cost efficiency and fostering innovation. In the cloud, companies can flexibly adapt their resources to respond to fluctuations in demand without wasting time and money on additional hardware investments.

Thanks to the pay-per-use model, you only pay for the resources you actually use, which leads to considerable savings and eliminates the need to invest in expensive hardware. In addition, the cloud enables access to the latest technologies without the need to update internal systems, which drives innovation and gives companies a competitive advantage. So we might as well rephrase the question: Why aren’t you developing in the cloud yet?

Find the right cloud strategy for your business

Benefit from our experience to future-proof your IT:

  • Analyze whether SaaS, PaaS, or IaaS suits your processes
  • Individual advice on security, costs, and scaling

This might interest you

Contact

Do you have any questions? Would you like to find out more about our services?
We look forward to your enquiry.

Sofia Steninger

Sofia Steninger
Solution Sales Manager