To set the record straight – cloud computing is not so much a segment, but rather an industry wherein it contains various segments. If you’ve started looking around within cloud computing, you would’ve probably seen the terminologies:
- Software-as-a-Service (SaaS)
- Platform-as-a-Service (PaaS)
- Infrastructure-as-a-Service (IaaS)
Broadly speaking, these are the main segments within cloud computing. When looking for investment opportunities, it is important to recognize the distinctions between the segments as these are often central to one’s investment thesis (something which I hope to illustrate further here).
What Exactly is “as-a-Service”?
If you’ve noticed, the various cloud computing segments are commonly suffixed with “as-a-Service”. Let’s take some time to clarify what this suffix refers to (
which will go a long way to clear things up later).
At its core, cloud computing companies are built around having a business model that involves making computers and/or computing resources
available for rental and subscription. The fulfilment or delivery in this case,...
