Cloud Computing is a broad term that describes a broad range of services. As with other significant developments in technology, many vendors have seized the term “Cloud” and are using it for products that sit outside of the common definition. In order to truly understand how the Cloud can be of value to an organization, it is first important to understand what the Cloud really is and its different components. Since the Cloud is a broad collection of services, organizations can choose where, when, and how they use Cloud Computing. In this report we will explain the different types of Cloud Computing services commonly referred to as Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) and give some examples and case studies to illustrate how they all work. We will also provide some guidance on situations where particular flavors of Cloud Computing are not the best option for an organization.

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https://support.rackspace.com/white-paper/understanding-the-cloud-computing-stack-saas-paas-iaas/