IaaS, PaaS, or SaaS? The Why of Cloud Computing Delivery Model Selection – Vignettes on the Post-Adoption of Cloud Computing

Abstract

Most large-scale organizations adopted Cloud Computing (CC) on a company level in recent years. Managers now face the challenge to appropriately implement CC "operationally", i.e., for information systems (ISs). We refer to this as post-adoption, addressing the extent of technology usage after adoption. Specifically, managers need to choose among the CC delivery models Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). We differentiate the determinants of this post-adoption decision for IaaS, PaaS, and SaaS. Based on this analysis, we derive criteria that guide managers' delivery model selection: Adopt 1) IaaS for ISs requiring flexibility and reduced time to market, 2) PaaS to access specialized resources, and 3) SaaS to focus on core competencies. Moreover, we analyze the impact on the CC strategy and postulate them as recommendations: I) acknowledge the interplay between governance and time-to-market, II) realize cost savings on company level, and III) consider strategically important ISs for CC.