In the software industry, whenever we make a website, we live/host it on a particular server, for example, www.mysite.com. Earlier, we used service providers like GoDaddy, Hostinger, and others. But what happens is you need to buy the service throughout the year. For example, with Hostinger, you can buy your subscription for 1 year. And if you imagine your website traffic increases, you need to upgrade your subscription. And Here comes the Pay-As-You-Go Model introduced.
What is Pay-As-You-Go Model?
You buy your tool based on the requirement, as seen in the image below; if you wish to purchase a virtual model, SQL Server, Build PC, and many more, you can easily do it with the cloud only.

What is IaaS (Infrastructure as a Service) ? | Copex
Let’s take an example of Azure; Using Azure cloud you can buy a high-configuration virtual machines, storage, and networking components such as virtual networks and load balancers. Azure IaaS offerings include Azure Virtual Machines (VMs), Azure Virtual Network, Azure Blob Storage, Azure Disk Storage, etc.
Using the above service, users can quickly deploy and manage their applications on these virtual machines without investing in physical hardware. Also, we have control over the operating system, applications, and configurations, as done by our company network administrator, to manage on-premises infrastructure.
Users are responsible for managing the operating system, applications, data, runtime, and middleware.
This functionality is called Copex (Capital Expenditure), As users may need to invest in resources.
What is PaaS (Platform as a Service)? | Pay-As-You-Go Model | Opex
In IaaS, we mainly perform operations regarding managing the infrastructure, while in PaaS, developers can focus more on building and deploying applications rather than managing the infrastructure. Azure PaaS offerings include services like Azure App Service (for hosting web applications), Azure SQL Database (for managed relational databases), Azure Functions (for serverless computing), and Azure Kubernetes Service (for container orchestration).
Here, the developer manages the applications and data; the Azure cloud provider manages the infrastructure and runtime environment.
What is SaaS (Software as a Service) ? | Opex
Software as a Service means you want to utilize applications and software hosted by a third party. That means you will not develop it or host it. Azure will take on all the responsibility and focus on providing the underlying infrastructure and platform services. Example, Office 365 (now Microsoft 365), Dynamics 365, and more.
In the SaaS Model, users can buy third-party software and access it through web browsers or APIs.
PaaS (Platform as a Service) and SaaS (Software as a Service) generally fall under Opex(Operational Expenditure).
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