This article was originally published December 13, 2022.
Discover the Differences of Cloud Hosting vs. IaaS, So Your Business Can Make an Informed Decision
Every business application needs a server to run on, and keeping that server patched, secured and replaced on schedule pulls time and budget away from the work your team was hired to do. Moving that workload to the cloud relieves much of the burden, though hosting providers describe their services in such inconsistent terms that comparing options can become a project of its own. SWK Technologies has put together this article to explain the difference between application hosting and Infrastructure as a Service (IaaS) so you can match the right hosting model to your software stack:
The #1 Difference to Know
The Big Picture view first: both are these cloud service models, but the biggest difference is in what and how you are hosting your resources.
When you host a single software app, it is typically a formerly on-premise system that is being loaded from a private server environment, whether it is managed locally by your team or an external cloud service provider (CSP).
When you host IT infrastructure, you are loading in multiple components from a dedicated environment, sometimes involving multiple offsite servers.
With that basic understanding, we can now talk about the detailed differences:
What is Cloud Hosting?
Cloud hosting is a broad term for running software, websites or data on remote servers operated by a third-party provider rather than on hardware kept at your office. Application hosting and IaaS are two delivery types within that category, and the core difference between them is how much of your technology stack moves off your premises.
What is Application Hosting?
Application hosting places a single business application, along with its data and required add-ons, onto a virtual server in a provider’s data center that your users reach over the Internet. The provider sizes that virtual server’s memory, vCPUs and disk storage to the application’s requirements, accounting for the software version, the number of users and the volume of data you store. Hosted software differs from software as a service (SaaS) in who delivers the application, since a hosted application is licensed software installed on the provider’s servers while a SaaS product such as Sage Intacct is delivered by its vendor as a native cloud service.
- When it fits: Choose application hosting when you are ready for someone else to manage, secure and provide server space for one single resource-intensive system.
- Pricing: Secure Cloud Hosting from SWK Technologies is priced as a monthly fixed fee, per user. No surprise billing – no hidden fees.
- Key point to remember: You do not have to limit yourself to Sage ERP when considering cloud hosting. SWK supports multiple application types from CRM and QuickBooks to Acumatica and Sage HRMS.
What is Infrastructure as a Service (IaaS)?
IaaS is a cloud service model where the provider controls the physical infrastructure while the customer chooses which operating systems and applications run on it. Virtual machines are a common example, letting businesses run workloads in a provider’s data centers without buying or maintaining physical servers.
Infrastructure hosting applies that model to your entire technology stack, moving multiple applications and the servers behind them into a virtual environment that can replace some or all of the hardware in your office. Domain controllers, file and print servers, database servers, integrations, custom-developed software and data warehouses can all run alongside your ERP in the same hosted setup. Many infrastructure as a service providers also layer managed support services onto the hosted environment, giving you one team to maintain, monitor and troubleshoot both the infrastructure and the applications running on it.
- When it fits: Choose IaaS when you are ready to hand over the bulk of tiresome IT maintenance tasks to an expert and never worry about purchasing new IT equipment again.
- Pricing: The SWK Technologies IaaS service is priced as a monthly fixed fee based on the amount of system resources configured.
- Key point to remember: You can set up IaaS with AWS and Azure, but they both have varied monthly costs based on usage, like a utility. Plus, only SWK has the expertise to set up and manage a full Sage stack environment on IaaS.
Application Hosting vs. IaaS: Key Differences
Both delivery types can run on the same underlying cloud infrastructure, though they differ in scope, server configuration and the kind of software stack each one is designed to support.
- Scope – Application hosting covers one ERP or CRM and its add-ons, while IaaS covers multiple applications along with the servers and components that connect them.
- Server configuration – Application hosting sizes virtual servers to a single program’s specifications, while infrastructure hosting configures each server around its function, software, memory and storage needs.
- Hardware footprint – Application hosting moves one workload off your local servers, while IaaS can retire as much on-premises hardware as you choose, up to the entire server room.
- Support model – Application hosting providers deliver the environment as a managed service for that one program, while IaaS ranges from self-managed to fully managed depending on the support services you add.
Which Hosting Model Fits Your Business?
Application hosting fits businesses that run one core system, such as accounting or ERP software, and want cloud access to it without rebuilding the rest of their technology stack. IaaS becomes the stronger fit as your software stack grows more complex, particularly when one or more of these conditions describe your business:
- Multiple applications – Your ERP connects to a separate CRM, payroll system, reporting tool or other add-ons that need to share the same hosted setup.
- Multiple locations – Employees across several offices or remote sites need consistent access to the same systems, files and printers.
- Aging hardware – Your servers are nearing end of support, require expensive upgrades or have maintenance agreements approaching their final renewal.
- Rapid growth – Headcount and user counts are rising faster than your current servers can scale without new hardware purchases.
Native cloud ERP such as Acumatica can also run in a hosted infrastructure environment when a business wants a private cloud deployment that sits alongside its third-party add-ons and process automation tools.
Benefits Shared by Both Hosting Models
Application hosting and IaaS move different amounts of your technology to the cloud, though both offer the same core advantages over running servers on your own premises.
- Predictable spending – Monthly service charges replace the capital cost of buying new servers every few years, making IT spending easier to forecast from one budget cycle to the next.
- Remote access – Employees in the office, in the field or at home can reach hosted applications and data from any location with an internet connection.
- Less hardware upkeep – Server repairs, upgrades and replacements shift to the provider, giving your internal IT staff more time for projects tied to business goals.
- Business continuity – Hosted environments run in professional data centers with redundant power, networking and regular backups, keeping your data recoverable after local outages or natural disasters.
- Security – Providers apply physical data center protections, network controls and ongoing monitoring across the hosted environment instead of leaving each safeguard to your internal team.
- Support and resolution time –- Both cloud hosting and IaaS place the responsibility and support for your systems under a single vendor, so you can enjoy faster resolutions with no finger pointing.
- IT performance –- Both options will improve your network performance, speed, and reliability because they free up resources and also focus on load balancing, parallel processing, and job scheduling.
Take the Next Step
Your ERP is critical to the day-to-day functioning of your business. It needs to be available to all of your workers at a moment’s notice, and it needs to be fast and efficient. These requirements are non-negotiable.
In the past, the only way a small-to-midsized company like yours could meet these inflexible requirements was by maintaining expensive IT equipment in a server closet located on your premises. Thank goodness those days are over.
Choose the Right Hosting Model with SWK Technologies
The right choice between application hosting and IaaS depends on how many applications, integrations and servers your business relies on today and how quickly that stack is likely to grow. SWK Technologies delivers both models through Secure Cloud Hosting, backed by a 99.99% uptime SLA and managed support for the business applications running inside each environment.
Contact SWK here to review your current software, servers and growth plans to identify which hosting model fits best, or fill out the form below: