Types of Cloud Services Explained for Business Owners

Cloud services in plain English: IaaS, PaaS and SaaS with examples, public, private and hybrid cloud, benefits, risks, security and how platforms compare.

By the ERS IT Solutions team Updated 28 October 2026 8 min read

Cloud services are IT resources (servers, storage, databases, software and networking) that you rent over the internet from a provider's data centre instead of owning them in your office. There are three main types: infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS), delivered through public, private or hybrid cloud. ERS IT Solutions, a Microsoft Cloud Solution Provider in Dublin 15 since 1983, designs and manages cloud services for Irish businesses.

What are cloud services? The meaning in plain English

The standard cloud computing services definition comes from the US National Institute of Standards and Technology, which defines cloud computing as "a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources", made up of five essential characteristics, three service models and four deployment models (NIST SP 800-145). In everyday terms: you use computing like electricity, paying for what you use, scaling up or down, and leaving the hardware to someone else.

Cloud computing is the technology; cloud services are the products sold on top of it. Microsoft 365, Azure virtual machines and an online accounts package are all cloud services. A cloud services provider in cloud computing is the company that runs them, such as Microsoft, Amazon Web Services or Google, or a partner that resells and manages them.

What are the types of cloud computing services?

There are three service models. The difference is how much the provider manages and how much you manage.

TypeWhat you getYou manageProvider managesExamples
IaaS (infrastructure as a service)Virtual servers, storage, networksOperating system, applications, dataPhysical hardware, data centreAzure Virtual Machines, Azure Disk Storage
PaaS (platform as a service)A ready platform to run applications or databasesYour application and dataServers, operating system, runtimeAzure App Service, Azure SQL Database
SaaS (software as a service)Finished software you log in toUsers, settings, dataEverything elseMicrosoft 365, Dynamics 365

Microsoft's shared responsibility model uses exactly these examples and stresses that in every model "you own your data and identities".

Infrastructure cloud services (IaaS)

IaaS is the closest to your own server room. You rent virtual machines, storage and networking, and run your own software on them. It suits businesses moving existing servers to the cloud without changing the applications, often called "lift and shift". Cloud infrastructure management services are the work of patching, monitoring, backing up and securing those machines, which is still your job (or your provider's) in IaaS.

Cloud platform services (PaaS)

PaaS removes the operating system from your list of jobs. You deploy an application or a database and the platform handles servers, patching and scaling. It suits cloud application development and hosting web applications. Cloud native services are applications built specifically for this model, using managed databases, functions and containers rather than full virtual machines.

Cloud software services (SaaS)

SaaS is software you simply use: email, accounts, CRM, HR. Most cloud based services and applications a small business uses are SaaS. Popular cloud services in this group include Microsoft 365, Google Workspace, Salesforce and Xero.

Cloud services examples by category

If you want a cloud computing services list, these are the cloud services categories businesses actually buy:

  • Cloud email services: Exchange Online in Microsoft 365, Google Workspace Gmail.
  • Cloud based storage services and cloud file services: OneDrive, SharePoint, Azure Files, Dropbox. Microsoft cloud storage services include OneDrive and SharePoint for documents and Azure Storage for application data.
  • Cloud data storage services for applications: Azure Blob Storage, Azure SQL Database.
  • Cloud backup and disaster recovery: see our cloud backup guide.
  • Cloud network services: virtual networks, VPN gateways, firewalls as a service.
  • Cloud logging services: central collection of security and system logs, for example Azure Monitor and Microsoft Sentinel.
  • Cloud desktops: Windows 365 Cloud PCs.
  • Cloud application hosting services: hosting web apps, portals and APIs on PaaS.
  • Mobile app cloud services: back ends that store data, authenticate users and send push notifications for mobile apps.

These are the main services of cloud computing that a small business meets. The large platforms offer many more, but a typical Irish SME uses only a handful.

Public vs private vs hybrid cloud: the deployment models

NIST lists four cloud deployment models: public, private, community and hybrid (NIST SP 800-145). The three that matter to most businesses:

ModelWhat it isGood forWatch out for
Public cloudShared infrastructure run by a provider, rented per useMost businesses, fast set-up, scalingConfiguration mistakes, cost control
Private cloudInfrastructure dedicated to one organisation, on its premises or hostedStrict data or performance requirementsHigher cost, you manage more
Hybrid cloudA mix of public cloud and private or on-premise systems, connectedMoving in stages, keeping a legacy system on siteMore moving parts to secure

What are public cloud services? Examples

Public cloud services are offered to anyone over the internet on shared infrastructure. Public cloud services examples include Microsoft Azure, Amazon Web Services, Google Cloud and SaaS products such as Microsoft 365.

What is a private cloud service?

Private cloud computing services run on infrastructure used only by your organisation. Private cloud hosting services put that dedicated environment in a provider's data centre. SSE Airtricity's sales pipeline system, built by ERS, was migrated from on-premise to a private cloud (SSE Airtricity case study).

Hybrid cloud storage services and multi cloud services

Hybrid cloud storage keeps some data on site (for speed or because a legacy application needs it) and syncs or tiers the rest to the cloud. Multi cloud means using more than one public cloud provider, for example Microsoft 365 and Azure alongside an application hosted on AWS. Multi cloud services add flexibility but also more consoles, bills and security settings to manage. Our older article on the hybrid cloud covers the basics.

What are the benefits of cloud services?

The advantages of cloud services for a business:

  1. No large hardware purchases. Costs move from buying servers every five years to a monthly fee.
  2. Scale when you need to. Add users or capacity in minutes.
  3. Work from anywhere. Staff reach email and files securely from home or on site.
  4. Less maintenance. The provider patches the physical infrastructure, and in SaaS much more.
  5. Better resilience. Major providers run multiple data centres. Azure's North Europe region is in Ireland and is paired with West Europe in the Netherlands (Microsoft Learn).
  6. Security tooling. Identity protection, encryption and monitoring that a small business could not build itself.

What are the risks of cloud services?

The main cloud services risks are not the data centre being breached. They are:

  • Misconfiguration: files shared publicly, storage left open, admin accounts without MFA.
  • Account takeover: one stolen password opens everything.
  • Cost overrun: resources left running, wrong sizes, unused licences.
  • No backup: assuming the provider backs up your data.
  • Lock-in: data or applications hard to move later.
  • Connectivity: if the internet goes down, so does access.

Are cloud services secure?

Major cloud platforms are generally more secure at the physical and infrastructure level than a typical office server room. The weak point is how the customer sets them up. Microsoft's own list of what customers always keep responsibility for is data, endpoints, accounts and access management, including MFA and conditional access (Microsoft Learn). Get those right and cloud services are secure for most businesses.

Cloud services comparison: Microsoft Azure vs AWS vs Google Cloud

Which is the best cloud computing service depends on what you already use.

Microsoft Azure and Microsoft 365Amazon Web ServicesGoogle Cloud
Strongest fitBusinesses already on Microsoft 365, Windows and Active DirectorySoftware companies and large-scale web workloadsData analytics and businesses on Google Workspace
IdentityEntra ID, shared with Microsoft 365Separate identity serviceGoogle identity
Region in IrelandNorth Europe (Microsoft)Europe (Ireland), eu-west-1 (AWS)Check Google's region list for current European locations
Typical SME useEmail, files, servers, backup, Cloud PCsHosting apps and websitesWorkspace, analytics

For most Irish SMEs running Microsoft 365, Azure is the natural choice for servers and backup because identity, security and billing sit in one place. A cloud services comparison chart should always include support: who you ring when it breaks.

What is managed services in cloud?

Managed cloud services means a provider runs your cloud environment for you: monitoring, patching, backups, security, cost control and user support, for a monthly fee. The types of cloud managed services range from managing Microsoft 365 only, to running Azure servers, to full managed IT across cloud and office. Cloud services brokerage is a related idea: a partner helps you choose, buy and combine services from several providers. See our cloud services page for how ERS does this.

Emerging cloud services and technologies

The cloud services technologies changing fastest in 2026 are AI services built into productivity tools, such as Microsoft Copilot, cloud PCs that replace office desktops, and serverless platforms for applications. For most small businesses the practical priorities are still secure identity, good backup and controlled costs.

Common questions

What is the difference between cloud computing and cloud services?

Cloud computing is the model of delivering computing resources over the internet on demand. Cloud services are the specific products delivered that way: a virtual server, a database, Microsoft 365 email, a backup service. In conversation the terms are often swapped. When buying, talk about cloud services, because you are choosing specific products, each with its own price, contract and security settings.

Which companies offer cloud computing services?

The large platform companies are Microsoft (Azure and Microsoft 365), Amazon Web Services and Google Cloud, with Oracle and IBM also active. Thousands of SaaS companies sell cloud software on top of those platforms. Cloud infrastructure services companies and managed service providers, such as ERS, set up, manage and support those services for businesses that do not have their own cloud engineers.

Can existing systems be integrated with cloud services?

Yes. Integration with cloud services is common: an on-site accounts package feeding Power BI, a legacy system syncing orders to a cloud CRM, or a mainframe exchanging data with a cloud portal. ERS builds this kind of integration through our middleware and integration team, which links legacy, cloud and off-the-shelf systems.

Who builds cloud applications?

Cloud application development services are delivered by software teams that build for PaaS and cloud native platforms. ERS has an in-house team of 25+ developers who build portals, web apps and mobile app back ends hosted in the cloud. See custom application development for examples.

Are cloud services suitable for financial services firms?

Yes, and many Irish financial services firms use them, but with more controls: data location in the EU, strict access management, logging, tested recovery and contracts that meet their regulator's outsourcing rules. Cloud solutions for financial services usually combine SaaS for productivity with private or tightly controlled public cloud for client data. Check your sector's regulatory requirements before moving core systems.

Questions about cloud services? Talk to the ERS team.

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