Different types of services can be grouped into three categories that are offered by the cloud providers:
Software as a Service (SaaS): In this model, a complete application is delivered on demand to the cloud users. Clients need not invest upfront before using the applications. They use the software subscription based or followed the model Pay-as-you-go, such as Google, Salesforce and Microsoft etc.
Platform as a Service (PaaS): In this model, the integrated development environment tools are provided to develop own business policy. Cloud developer develops the application and run it in cloud environment to supply the customers. A predefined configuration of operation system and application server are delivered to cloud users. For an example, Force.com and Google's App Engine are providing as platform.
Infrastructure as a Service (IaaS): The virtualization of resources are provided to run the application called the Infrastructure as a Service (IaaS). The resources are virtual server, host, machine, storage, and computing capacity etc. The cloud users deploy theirs own applications in cloud infrastructure such as Amazon and Go Grid etc.