What is Infrastructure as a Service (IaaS)?

Infrastructure as a Service (IaaS) is a cloud computing delivery model in which the provider supplies on-demand compute, storage, networking, and virtualization resources — without the customer owning physical hardware. Customers pay for what they use, scale up/down dynamically, and retain full control over operating systems and application stacks running on the infrastructure.

IaaS vs PaaS vs SaaS

Layer Customer manages Examples
IaaS OS, runtime, app, data AWS EC2, Azure VMs, GCP Compute Engine, DigitalOcean Droplets
PaaS App + data only Heroku, Vercel, Railway, Render
SaaS Data only (configuration) Salesforce, HubSpot, Notion, Slack

Major IaaS providers (2025)

  • AWS: ~31% market share; broadest service catalog (EC2, S3, RDS, Lambda, EKS)
  • Microsoft Azure: ~25%; strong enterprise + hybrid cloud
  • Google Cloud (GCP): ~11%; AI/ML strengths (Vertex AI, TPUs)
  • Alibaba Cloud: ~7% (Asia dominant)
  • Oracle Cloud Infrastructure (OCI): ~3% (enterprise database focus)
  • Türk providers: Türk Telekom Bulut, Turkcell GSM Bulut — daha küçük, yerel data residency için

IaaS service categories

  • Compute: Virtual machines, bare metal, containers, serverless
  • Storage: Block (EBS), object (S3), file (EFS), archive (Glacier)
  • Networking: VPC, load balancers, DNS, CDN, VPN
  • Database: Managed RDS, NoSQL (DynamoDB), data warehouse (Redshift)
  • Security: IAM, KMS, secrets manager, WAF

IaaS pricing models

  • On-demand: Per-hour/per-second usage
  • Reserved instances: 1-3 year commitment, 30-72% discount
  • Spot instances: Excess capacity at 60-90% discount; can be reclaimed
  • Savings plans: Hourly commitment across instance types

Cost optimization (FinOps)

Average enterprise wastes 30%+ of cloud spend. FinOps discipline addresses:

  • Right-sizing (unused capacity)
  • Reserved instance / Savings plan coverage
  • Spot instance use for fault-tolerant workloads
  • Storage tiering (S3 Standard → IA → Glacier)
  • Auto-scaling configuration
  • Idle resource decommissioning

Data residency + KVKK considerations

Turkish companies storing personal data on IaaS face KVKK Article 9 cross-border transfer rules:

  • AWS, Azure, GCP have Türkiye regions (Istanbul) — preferred for KVKK-sensitive data
  • Veri sorumlusu — IaaS provider veri işleyen relationship → DPA imzası şart
  • 2024 7499 sayılı Kanun değişikliği SCC/BCR mekanizmalarını getirdi
  • Sağlık + biyometrik + finansal veri için ek tedbir (encryption at rest, KMS key in Türkiye)

IaaS vendor lock-in

Risk: Building on proprietary IaaS services (DynamoDB, Lambda, Bedrock) makes migration expensive. Mitigation strategies:

  • Use multi-cloud abstraction (Terraform, Kubernetes)
  • Prefer open-source alternatives where possible
  • Negotiate exit clauses in enterprise contracts
  • Budget for periodic migration assessments

Practical implications for founders

For Turkish startups: (1) Start with Türkiye region for KVKK simplicity; expand internationally as needed; (2) Reserved instance commits valuable at $20k+ monthly spend; (3) Use spot for batch processing, fine-tuning, dev environments; (4) Implement basic FinOps from $5k/month spend. Vircon Legal advises on IaaS DPA review + Turkish data residency compliance.

References