What is a SaaS vs paas?
SaaS and PaaS are different cloud service models. SaaS gives you finished software to use, while PaaS gives developers a managed environment for building, deploying and running software.
The two models serve different purposes:
- SaaS, or Software as a Service, is for using applications.
- PaaS, or Platform as a Service, is for creating applications.
SaaS users usually log in through a web browser or mobile app. PaaS users write code and deploy applications without managing the underlying servers, operating systems or runtime infrastructure.
SaaS vs PaaS at a Glance
| Category | SaaS | PaaS |
|---|---|---|
| Full name | Software as a Service | Platform as a Service |
| Main purpose | Use completed software | Build and run software |
| Typical user | Employee, business team or consumer | Developer or engineering team |
| Coding required | Usually no | Yes, for custom applications |
| Provider manages | Application, infrastructure, updates and maintenance | Infrastructure, operating system, runtime and platform services |
| Customer manages | Users, settings, access permissions and business data | Application code, configuration and data |
| Typical examples | Microsoft 365, Salesforce, Google Workspace | Azure App Service, Google App Engine, Heroku |
| Main benefit | Convenience and low maintenance | Faster development with less server administration |
| Main trade-off | Less control and customization | More technical responsibility than SaaS |
What Is SaaS?
SaaS is completed software that a provider hosts and delivers over the internet. Customers access the application through a browser or mobile app instead of installing and maintaining it on their own servers.
Examples of SaaS include:
- Microsoft 365
- Salesforce
- Google Workspace
- Dropbox
- Slack
- Adobe Creative Cloud
The SaaS provider generally operates the application, infrastructure, updates, security patches and service availability. Customers still manage user access, configuration, integrations and the data they enter into the application.
How SaaS Works
A SaaS provider:
- Builds and hosts the application.
- Runs the required servers, databases and networking.
- Applies software updates and maintenance.
- Makes the application available over the internet.
- Charges through a subscription, usage-based model or another service plan.
The customer creates an account, configures the software and starts using it. The customer does not need to provision servers or install the application on every device.
When Should You Choose SaaS?
Choose SaaS when you need a ready-to-use application without taking on server and software maintenance.
SaaS is a good fit when you want to:
- Start using a business application quickly.
- Avoid managing servers and software installations.
- Give employees access to the same application from multiple locations.
- Use standard functionality instead of building a custom system.
- Reduce the application maintenance handled by your internal IT team.
SaaS is less suitable when your organization needs complete control over the application architecture, source code or deployment environment.
What Is PaaS?
PaaS is a managed cloud platform that developers use to build, test, deploy and operate applications. The provider manages much of the infrastructure and runtime environment. The development team manages its application code, configuration and data.
Examples of PaaS include:
- Azure App Service
- Google App Engine
- Heroku
- AWS Elastic Beanstalk
- Red Hat OpenShift
Azure App Service is a managed PaaS offering for building, deploying and scaling web applications and APIs.
How PaaS Works
A PaaS provider typically supplies:
- Compute resources
- Operating systems
- Runtime environments
- Application hosting
- Databases or database integrations
- Development tools
- Deployment services
- Scaling and monitoring capabilities
Developers supply the application code, configuration and data. The PaaS provider maintains much of the server, operating system and runtime infrastructure.
When Should You Choose PaaS?
Choose PaaS when you need to build and deploy a custom application without managing virtual machines, operating systems and much of the supporting infrastructure.
PaaS is a good fit when you want to:
- Build a web, mobile or API-based application.
- Deploy software without managing virtual machines.
- Reduce infrastructure administration.
- Give developers a standard development environment.
- Scale an application without configuring every server manually.
- Release software using managed deployment and development services.
PaaS is less suitable when you need complete control over the operating system, networking configuration or underlying hardware. In that situation, Infrastructure as a Service, or IaaS, may be a better fit.
What Is the Main Difference Between SaaS and PaaS?
The main difference is what the customer receives:
- A SaaS customer receives a finished application.
- A PaaS customer receives a development and hosting platform.
For example, a company can use Microsoft 365 as SaaS for email and documents. A development team can use Azure App Service as PaaS to build and host a custom customer portal. Microsoft identifies Microsoft 365 as SaaS and Azure App Service as PaaS.
SaaS is aimed at application users. PaaS is aimed at teams developing and operating applications.
SaaS vs PaaS: Who Manages What?
The service model determines how operational responsibility is divided.
| Technology layer | SaaS customer | PaaS customer |
|---|---|---|
| Physical data center | Provider | Provider |
| Physical hardware | Provider | Provider |
| Networking infrastructure | Provider | Provider, with customer configuration options |
| Operating system | Provider | Provider |
| Runtime environment | Provider | Provider |
| Application platform | Provider | Provider |
| Application code | Provider | Customer |
| Application settings | Customer configuration | Customer |
| Business data | Customer responsibility | Customer responsibility |
| Users and permissions | Customer | Customer |
This division is part of the shared-responsibility model. SaaS removes much of the infrastructure and application maintenance, but the customer still manages identities, permissions, data governance, integrations and service configuration.
With PaaS, the customer also manages application code, deployment and application-level security.
Is PaaS Used to Build SaaS?
Yes. PaaS can be used to build, deploy and operate a SaaS product.
A software company might:
- Use a PaaS platform to host its application code.
- Connect the application to managed databases and storage.
- Add authentication, billing and monitoring.
- Sell the finished application to customers as SaaS.
SaaS and PaaS are therefore not always competing choices. They can operate at different layers:
End user
↓
SaaS application
↓
Application code and services
↓
PaaS platform
↓
Cloud infrastructure
A company can use SaaS products for internal work while using PaaS to develop its own software.
SaaS vs PaaS vs IaaS
IaaS provides servers, storage and networking. PaaS adds a managed environment for application development. SaaS delivers the finished application.
| Model | What you receive | What you mainly do |
|---|---|---|
| IaaS | Servers, storage and networking | Manage operating systems and applications |
| PaaS | Managed platform for application development | Write, deploy and manage application code |
| SaaS | Finished application | Configure and use the software |
Microsoft describes IaaS, PaaS and SaaS as different levels of control and management responsibility. IaaS leaves more operational work with the customer, while SaaS leaves more application and infrastructure management with the provider.
Which Is Better: SaaS or PaaS?
Neither model is universally better. The right choice depends on whether you need to use existing software or build your own application.
Choose SaaS if:
- You need a ready-to-use application.
- Your team does not need to write custom application code.
- Fast deployment and low maintenance are priorities.
- Standard features meet your business requirements.
Choose PaaS if:
- You need to build a custom application.
- You have developers who can manage code and deployments.
- You want to avoid maintaining servers and operating systems.
- Your application needs more flexibility than a standard SaaS product provides.
Bottom Line
Use SaaS when your team needs to configure and operate an existing application. Use PaaS when your team needs to build and deploy an application while leaving much of the infrastructure management to the provider.