Cloud Computing and Infrastructure as a Service: Key Concepts for Managers

Picture the IT manager of a mid-size manufacturing company: the company’s servers are crammed into a back-office corner, annual licensing renewals eat into the budget every spring, and opening a new branch means waiting weeks for the infrastructure to catch up. This is exactly the scenario where cloud computing enters the conversation. The term sounds new and somewhat abstract, but the underlying idea is straightforward: instead of buying computing resources, you rent them over the internet.

Cloud computing is delivered in three distinct layers, and each layer addresses a different kind of business need. At the foundation sits IaaS — Infrastructure as a Service. In this model, a company no longer purchases physical servers, storage units, or networking hardware. Instead, it rents those resources from a remote data center. Who manages the hardware, who keeps it cool, who handles redundancy — none of that is the company’s concern. The business pays only for the processing power and storage it actually uses, scaling up or down as demand changes.

The middle layer is PaaS — Platform as a Service. This model is aimed primarily at companies that develop software or need to customize existing applications. The infrastructure remains entirely in the provider’s hands; the company gains a ready-made development environment on which it can build its own applications without worrying about database servers, operating system patches, or runtime configurations. For a small trading company or a family-owned distributor, this layer is usually too technical to be relevant. It becomes meaningful when there is an in-house development team with a specific project on the table.

The top layer is the one most SMB managers find immediately relevant: SaaS — Software as a Service. Here, the company installs nothing, buys no license, and runs no updates. It accesses an accounting tool, a customer tracking system, or an HR application directly through a web browser and pays a monthly or annual subscription fee. The most tangible advantage is the low barrier to entry: instead of a large upfront license purchase, server procurement, and implementation costs, the company works with a predictable monthly expense that can be planned into the budget from day one.

Choosing between these three layers starts with a single honest question: ‘Are we building software, or are we using it?’ If the company needs a standard accounting, inventory, or sales management solution, SaaS is the natural starting point. If there is a custom application development plan backed by a technical team, PaaS deserves a closer look. IaaS tends to suit mid-size companies that want to migrate existing applications away from their own server rooms without rebuilding those applications from scratch.

As ADSL broadband spreads across Turkey, accessing these services is becoming technically feasible for more businesses. That said, connection speed and reliability remain a real variable — branches in smaller cities or facilities in industrial zones may face unstable lines, and running a business-critical cloud application over an unreliable internet connection introduces operational risk that no pricing model can offset. Reviewing the company’s internet infrastructure before committing to a cloud-based service is not optional; it is part of the decision itself.

For an SMB manager evaluating cloud options, the most practical starting point is a straightforward cost comparison: calculate the three-year total of current software licenses and server renewal costs, then compare that figure against the equivalent subscription cost for a SaaS alternative over the same period. This exercise frequently shows that the cloud model significantly reduces the initial capital burden. However, before signing any agreement, data security terms, service continuity guarantees, and contract exit conditions deserve the same level of scrutiny as the pricing — because a low monthly fee attached to a poorly defined service agreement can turn a cost-saving decision into an operational liability.

This article was originally written in Turkish by Gökhan MERCANOĞLU on February 23, 2009 and has been automatically translated into English and other languages using machine translation.


When data sharing succeeds, it does not merely put more information on a screen; it gives management clearer decisions. Silos decrease, responsibility becomes visible, and measurable progress starts. Therefore, the issue is not tool selection but rebuilding operating discipline through technology.


Gökhan Mercanoğlu
Bulut, SaaS ve Platform Ekonomisi