Modern Cloud services generally fit one or more of the three layers of the SPI model.
SaaS - Is all about delivering applications to the end user seamlessly. An example was the BuyIT.com Office 365 roll out of email. Other, more easily recognizable examples of SaaS would be the social media engines such as Facebook, Twitter, Instagram, etc.
PaaS - Is about providing a development and deployment platform on which software developers can build feature rich applications that will eventually be consumed via SaaS as well as traditional means.
IaaS - Are the building blocks for all cloud computing. Companies such as VMware, Redhat, and others have built platforms that enable the abstraction of Networking, Hardware, and software resources. This is mainly consumed by System Admins looking to implement cloud solutions within the business. For example, bringing IaaS together to deploy PaaS to their software developers.
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