IaaS vs BaaS – What are the differences?

This article will explore the differences and similarities between IaaS vs BaaS. It will cover the core features and functionalities of these cloud models.  

IaaS and BaaS are a few major cloud computing services businesses, startups and developers like to use because of their outstanding benefits.

Indeed, Infrastructure as a Service (IaaS) and Backend as a Service (BaaS) are two excellent services allowing coders to create reliable systems that meet exact needs.

However, we must remember that some key points set these services apart regarding IaaS vs BaaS. In this article, we will discuss the significant differences between both umbrella terms.

Cloud Computing: An Overview

Cloud computing delivers services like storage, architecture, and computing power over the internet. Cloud computing also includes services such as Backend as a Service (BaaS), Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).

Similarly, cloud computing provides an on-demand model for IT services that enables consistent deployment of resources and applications with fast provisioning and de-provisioning. This can help organizations increase efficiency, reduce costs and improve business agility.

According to the Cloud Computing Market report of MarketsAndMarkets, it is anticipated that the size of the global cloud computing market will rise to USD 947.3 billion by 2026. This figure was only $445.3 billion in 2021, and now, it is increasing by 16.3% of the Compound Annual Growth Rate (CAGR).

Benefits of Cloud Computing


Cloud computing allows you to access your files from any device, wherever you are. You can easily access your documents on your phone or tablet, no matter where you are or what time it is.


When using a cloud-based system, your files are protected with encryption software so that only those who have permission can access them. This also means that if someone does gain unauthorized access to your data, they won’t be able to use it without knowing how to decrypt it first.


Cloud computing makes it easier for businesses to manage their finances since they no longer have to worry about upgrading hardware or Software! They need an internet connection, and they’re good to go!


A cloud-based application can scale up or down as needed without the cost of buying and maintaining new hardware, which is expensive and requires ongoing maintenance and support.

Cost Effective

Cloud computing allows businesses to pay for only what they need when they need it. This means saving money by paying for only what’s used each month.


Cloud computing offers improved reliability over traditional IT solutions because it uses multiple servers across different locations. It prevents outages if one server fails or goes down due to maintenance issues.

What is an IaaS?

A type of cloud computing called Infrastructure as a Service (IaaS) confers computing sources including storage, computing, networking and servers. It works with other cloud computing services that are SaaS and PaaS. 

In addition, IaaS is an essential part of cloud computing and helps to build a scalable, reliable, and cost-effective IT infrastructure.

IaaS provides the necessary tools to build infrastructure components like servers, storage systems, and networking equipment.

Examples of IaaS include:

Market Size of IaaS

According to Gartner, Inc., the global Infrastructure as a Service (IaaS) market rose by 41.4 per cent in 2021 to reach $90.9 billion.

It was only $64.3 billion in 2020. In 2021, Amazon continued to hold the top spot in the IaaS market, ahead of Microsoft, Alibaba, Google, and Huawei.

Amazon maintained its lead in the global IaaS market in 2021, with revenue of $35.4 billion and a 38.9 percent market share.

Moreover, according to Statista, the Infrastructure as a Service (IaaS) market is expected to be worth approximately 120 billion USD in 2022. These statistics display the steady and fast growth of the IaaS market.

IaaS Core Features

Virtual Machines

Virtual machines are a vital feature of IaaS. They allow you to run multiple operating systems on the same physical host, keeping costs low while increasing your flexibility and efficiency.


Storage is one of the essential components of any cloud deployment. It allows you to store and access your data quickly when needed.

Cloud providers offer many types of storage, including block storage (for example, Amazon EBS) and object storage (for example, Amazon S3).


Networking is another essential feature of IaaS clouds, as it provides connectivity between various network elements such as servers and storage devices.

Cloud providers often offer multiple types of networks for different purposes — for example, you might have one network for management traffic and another for user traffic.


Security is crucial in any infrastructure environment, especially in the cloud, where multiple customers share resources.

There are many layers between them and their data center provider (which means that even if there is a breach, it may not be immediately detected).


The ability to automate and orchestrate cloud services is one of the essential aspects of IaaS. So, this platform enables you to quickly integrate, deploy, and manage your applications based on the needs of your business.

IaaS Benefits

On-Demand Elasticity

The ability to provision and de-provision resources on demand as per the business needs. This is a significant advantage in terms of saving costs, as you do not need to keep resources that are not used.

Pay Only For What You Use

With the pay-per-use model, you pay only for what you use, which helps reduce the overall cost of ownership (TCO).

Besides, it allows you to better utilize your existing infrastructure by enabling you to run multiple applications on the same servers.

Easy Migration from One Cloud Service Provider to Another

It is easy to migrate from one cloud service provider to another without downtime or data loss during the migration process.

Thus, it is a perfect service provider due to its standardized APIs and interfaces across all major providers, such as Microsoft Azure and Google Cloud Platform (GCP).

High-Performance Computing Capabilities

The infrastructure layer in an IaaS environment provides the processing power needed to support high-performance computing (HPC) applications. Examples include scientific research, data analytics, and financial modeling.

What is a BaaS?

A technique for creating software applications that outsource backend computing capabilities to a cloud service provider is called Backend as a Service (BaaS).

BaaS is crucial to serverless computing, NoOps, and low-code/no-code (LCNC) program development. Less expensive engineering costs and a quicker time to market for software applications are two advantages of hiring a BaaS provider.

This backend service lets you focus on building your application frontend using their APIs instead of wasting time configuring your backend infrastructure (databases, servers, etc.).

Examples of BaaS:

Market of Size BaaS

According to a report by MarketsAndMarkets, the BaaS market is growing with a CAGR of 23.9 percent. Yes, it is anticipated to grow to $5.9 billion by 2025. It was only $2 billion in 2020.

Growing mobile app-driven economies, rising mobile device use, and BaaS’s ability to assist developers in concentrating on the frontend for quicker development are reasons for its rapid growth. Also, deployment is the main factor driving demand for cloud mobile BaaS.

The BaaS market is also driven by factors such as the rapid growth of big data analytics applications and the increasing need for business agility through on-demand access.

BaaS Core Features

Data Persistence

The first feature of a BaaS is to provide data persistence. It enables you to store your application data and make it accessible in real-time.


Multi-tenancy is an essential feature of a BaaS solution that allows you to host multiple applications on the same platform, each with its database.

This means you can have an application running on SaaS that uses another company’s BaaS and another application hosted on the same platform.


A BaaS solution should be scalable enough to grow or shrink based on your needs. You should be able to scale up your usage when there is a high traffic volume or downscale when traffic drops off during non-peak hours or seasons.


Security is also paramount in any cloud computing environment, especially when it comes to sensitive data like personal information or financial records.

It must be protected at all costs from unauthorized access by hackers or other malicious actors who could use this information for personal gain or even harm others.

Data Storage

A BaaS solution should provide data storage capabilities in the cloud. The data needs to be secure and reliable. Developers should be able to store any data they want, including text, binary, or images.

BaaS Benefits

Seamless Integration

With BaaS, you can seamlessly integrate your mobile application with your backend. This integration will help you eliminate all the hassles of maintaining your app’s backend, such as managing servers and handling the load on the server side.

Easy Maintenance

You don’t need extra maintenance costs if you choose an open-source BaaS framework like Parse or Firebase for your application development. These frameworks are entirely free to use for an unlimited number of users and transactions per month.

No Middlemen Needed

Blockchain technology eliminates the need for centralized servers, third-party vendors, or other intermediaries such as banks or payment processors. This eliminates transaction fees and delays that are common with traditional payment methods.

Faster Transactions

The speed at which blockchain transactions can be completed is faster than traditional payment methods such as credit cards and checks.

This makes it ideal for processing micropayments which would otherwise be impractical due to the high costs associated with these payment methods.

Difference between IaaS and BaaS

IaaS vs BaaS
  • BaaS is a Backend as a Service, while IaaS is Infrastructure as a Service.
  • BaaS is a managed service, IaaS is not.
  • BaaS has digital accelerators to build backend code, while IaaS provides infrastructural components and virtual computing sources.
  • BaaS manages servers scalability while IaaS doesn’t.
  • BaaS offers deploy code while IaaS administers the infrastructure.


So which solution is better suited for you? Well, that may differ from business to business. It all comes down to your needs and what you’re looking for.

There’s no wrong answer in this debate; it’s just a matter of deciding which cloud computing model matters most to you. And whether one option over the other provides more value for the money, you’re willing to spend.


What is IaaS?

IaaS stands for Infrastructure as a Service

What is BaaS?

BaaS stands for Backend as a Service

What are the differences between IaaS and BaaS?

– BaaS is a managed service, IaaS is not.
– BaaS has digital accelerators to build backend code, while IaaS provides infrastructural components and virtual computing sources.
– BaaS manages servers scalability while IaaS doesn’t.
– BaaS offers deploy code while IaaS administers the infrastructure.

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