Cloud Services 101 For UK SMEs: IaaS, PaaS, SaaS And What You Actually Need

New year, new projects, and likely a list of IT improvements you want to tick off. If “move to the cloud” is on that list, this guide cuts through the noise.

In plain English, you will learn what cloud IT services mean, the four main service models most UK SMEs actually use, real examples in the Microsoft ecosystem, and a simple decision flow to help you choose with confidence.

What are cloud IT services?

Cloud IT services are computing tools delivered over the internet that you pay for monthly, instead of buying, hosting and maintaining everything in your own office.

You tap into shared infrastructure in secure data centres for email, files, apps, servers and backups.

The benefits are predictable costs, easier scaling, built in security features, and fewer on site headaches.

The four main cloud service models

Think of cloud like layers of responsibility.

The more you move up the stack, the less you have to manage.

• Infrastructure as a Service, IaaS: You rent virtual servers, storage and networking. You manage the operating systems and applications.

  
  

Example: Azure virtual machines running Windows Server for a legacy line of business app, or Azure Virtual Desktop to give remote teams a full Windows desktop with your apps.

• Platform as a Service, PaaS: You rent a managed platform where the provider handles the OS, runtime and patching.

  
  

  You focus on the app or data. Example: Azure App Service for a small web application, or Azure SQL Database to host a database without running a SQL server yourself.

• Software as a Service, SaaS: You subscribe to complete software that runs in the provider’s cloud.

  
  

  No servers, no patching. Examples: Microsoft 365 for email, meetings and files; SharePoint and OneDrive for document storage; Teams for chat, meetings and calls.

• Backup and Disaster Recovery as a Service, BaaS and DRaaS: Add ons that protect data and keep you operating if the worst happens.

  
  

  Examples: immutable backups of Microsoft 365 and servers, tested restores, and failover options to spin up systems in the cloud during an outage.

What are the top three cloud services?

For most SMEs, the top three are:

1. SaaS, because it delivers the fastest wins. Microsoft 365 covers email, Office apps, Teams and secure file sharing in one familiar platform.

2. BaaS, because backups are your last line of defence. Immutable, tested backups prevent ransomware from wiping you out and give you recovery confidence.

3. IaaS, because it bridges the gap for legacy software that is not ready for SaaS. Hosting a server or delivering Azure Virtual Desktop keeps older apps available for hybrid and remote teams.

PaaS enters when you have a custom application or database that you want to simplify and secure without running full servers.

Real world examples for SMEs

• Microsoft 365 Business Premium: Email, calendars, Office apps, Teams, OneDrive and SharePoint, plus built in security like MFA, device encryption and conditional access. Pair it with Microsoft Intune for device management and safer remote work.

• Azure Virtual Desktop: A secure, cloud hosted Windows desktop for staff who need a consistent environment or access to a legacy app from anywhere.

• Backup to immutable storage: Snapshots of servers and Microsoft 365 data that cannot be altered, with regular restore testing. This reduces ransomware risk and speeds up recovery.

• Teams telephony: Replace traditional phone systems with cloud calling inside Teams so your team can handle calls from any location.

Which cloud model suits a small business best?

There is no one size fits all, but here is a quick steer:

• Mostly email, Office and file sharing, with modern collaboration needs: start with SaaS using Microsoft 365 Business Premium.

• Remote or hybrid teams needing a consistent desktop, or a legacy Windows app: add IaaS or Azure Virtual Desktop.

• Compliance or client contracts that demand strong resilience and recovery: add BaaS with immutable copies and DRaaS options.

• A bespoke app or database you do not want to patch or babysit: consider PaaS such as Azure App Service and Azure SQL.

A simple decision flow for common SME scenarios

Use this as a checklist to shape your next steps.

1. You are all in on Microsoft 365 for email and files

   
   

   Choose SaaS first. Standardise on Microsoft 365 Business Premium. Enforce MFA and Conditional Access, manage devices with Intune, and store files in OneDrive and SharePoint. Add Teams for meetings and, if you want to retire the phone system, enable Teams telephony.

2. You have a legacy application tied to a server in the back office

   
   

   Check if a modern SaaS alternative exists. If not, move the app to Azure using IaaS or publish it via Azure Virtual Desktop. This removes on site server risk and supports remote users without complex VPNs.

3. Your workforce is fully remote or hybrid across the UK

   
   

   Prioritise SaaS with Microsoft 365 and Intune for device compliance. For specialist apps, consider Azure Virtual Desktop for a consistent, secure workspace. Use Conditional Access to restrict logins by risk, device compliance and location.

4. You need stronger compliance and audit trails, for example to support Cyber Essentials

   
   

   Harden Microsoft 365, enable MFA everywhere, block legacy authentication, configure SPF, DKIM and DMARC, and document your controls. Implement immutable backups with monthly restore tests. Consider staged Conditional Access policies and regular user access reviews.

5. You worry about ransomware or accidental deletion

   
   

   Adopt BaaS with immutable storage for Microsoft 365 and your servers. Test restores routinely. If downtime is a critical risk, add DRaaS to fail over key services into the cloud.

Benefits to expect, and pitfalls to avoid

• Predictable costs and fewer on site failures. You pay monthly for what you use and scale up or down as your team changes.

• Better security posture when you switch on the right features. MFA, device encryption, Conditional Access and regular patching should be standard. Do not leave defaults in place, and do not skip backups because your apps live in the cloud, SaaS still needs backup.

• Smoother collaboration and remote access. Teams, SharePoint and OneDrive reduce email ping pong and make sharing more controlled.

• Watch out for hidden complexity. Lift and shift everything to IaaS without rethinking licensing, identity or backup can cost more than you expect. Validate performance and storage costs, and set budgets and alerts in Azure.

How to get started in January

• Set clear goals. Pick one or two business outcomes, faster onboarding, remote access for a legacy app, or stronger resilience.

• Standardise on Microsoft 365 Business Premium where appropriate. Turn on MFA, Conditional Access and device management.

• Map your line of business apps. Decide which can move to SaaS now, which need IaaS or Azure Virtual Desktop, and which can be retired.

• Implement backups before you migrate data. Use immutable storage and schedule restore tests.

• Plan a staged rollout. Pilot with a small group, validate user experience, then expand.

If you want a partner to blueprint the right mix and handle the heavy lifting, our team provides it services and support that bring these pieces together without the jargon.

Quick answers to common questions

• What are cloud IT services? Computing services delivered over the internet, paid monthly, so you avoid buying and maintaining on site hardware and software.

• What are the 4 main cloud services? IaaS, PaaS, SaaS, plus BaaS and DRaaS as common SME add ons for backup and recovery.

• What are the top 3 cloud services? For SMEs, SaaS, BaaS, and IaaS, with PaaS when you run custom apps without server admin.

• What are examples of cloud services? Microsoft 365, SharePoint, OneDrive, Teams, Azure Virtual Desktop, Azure virtual machines, Azure App Service, Azure SQL Database, and immutable backups.

• Which cloud model suits a small business best? Usually SaaS with Microsoft 365, backed by BaaS. Add IaaS or Azure Virtual Desktop for legacy apps and PaaS for bespoke workloads.

  
  

Why choose Initial IT for your cloud move

We specialise in the Microsoft ecosystem, secure configuration, practical migrations and ongoing care.

That includes hardened Microsoft 365 tenants, Conditional Access, Intune device management, Azure hosting, and immutable, tested backups.

If you prefer to hand off day to day operations, our managed it services keep your environment patched, monitored and supported so you can focus on growth.

Book a friendly discovery call to map your priorities, identify quick wins and create a realistic plan.

We will talk in plain English, give you options with pros and cons, and handle the rollout with minimal disruption.

Ready to move forward?

Get started today with Initial IT.

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