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The three different service models taken together have come to be known as the SPI model of cloud computing. Many other service models have been mentioned: StaaS, Storage as a Service; IdaaS, Identity as a Service; CmaaS, Compliance as a Service; and so forth. However, the SPI services encompass all the other possibilities.

It is useful to think of cloud computing service models in terms of a hardware/software stack. One such representation called the Cloud Reference Model At the bottom of the stack is the hardware or infrastructure that comprises the network. As you move upward in the stack, each service fee payment solution model inherits the capabilities of the service model beneath it. IaaS has the least levels of integrated functionality and the lowest levels of integration, and SaaS has the most.

Cloud computing builds on so many older concepts in computer technology that it can be hard for people newly introduced to the concept to grasp that it represents a paradigm shift in computing. It's an evolutionary change that enables a revolutionary new approach to how computing services are produced and consumed.

When you choose a cloud service provider, you are renting or leasing part of an enormous infrastructure of datacenters, computers, storage, and networking capacity. Many of these datacenters are multi-million-dollar investments by the companies that run them. To give you some sense of scale, it has been estimated that a state-of-the-art microchip fabrication facility can cost anywhere from $2 to $5 billion. By comparison, a state of the art cloud computing datacenter can run in the range of $100 million. Most of the large cloud computing service providers have multiple datacenters located all over the world. An accurate count can be difficult to obtain, the location of some 20 datacenters in Amazon Web Service's cloud are detailed. Google's cloud includes perhaps some 35 datacenters worldwide.

In the 1960s, military initiative aimed at miniaturizing electronics funded many of the semiconductor production lines that led to advanced microprocessors, dense memory arrays, and the sophisticated integrated circuit technology that makes computers, mobile devices, and so much more possible today. In the 1990s, the commercialization of the Internet gave rise to some very large companies that were forced to build very large computing infrastructures to support their businesses.

Platform as a Service: PaaS provides virtual machines, operating systems, applications, services, development frameworks, transactions, and control structures. The client can deploy its applications on the cloud infrastructure or use applications that were programmed using languages and tools that are supported by the PaaS service provider. The service online fee gateway provider manages the cloud infrastructure, the operating systems, and the enabling software. The client is responsible for installing and managing the application that it is deploying.

Software as a Service: SaaS is a complete operating environment with applications, management, and the user interface.In the SaaS model, the application is provided to the client through a thin client interface (a browser, usually), and the customer's responsibility begins and ends with entering and managing its data and user interaction. Everything from the application down to the infrastructure is the vendor's responsibility.

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