With changing technology landscape, there has been a shift from building in-house data centers to adopting Infrastructure as a service or IaaS, one of the leading services from stack of cloud computing.

Gartner, a technology research firm, predicts that, 'Infrastructure-as-a-Service (IaaS) will achieve a compound annual growth rate (CAGR) of 41.3% through 2016, the fastest growing area of public cloud computing the research firm tracks.' The data shows significant growth of IaaS in near future.

It has been observed that provisions of IT resources on demand are far more efficient when compared to traditional model of forecasting and investing in future IT capital. Its ability to provision the resources immediately empowers businesses to make quick decisions in response to the changing business requirements.

With the advent of IaaS, large cloud service providers have attained economies of scale by allocating costs to numerous companies, thereby reducing overall IT operating expenses.

Most companies are considering move to IaaS from in-house data centers, owing to its potential to eradicate capital expenditure incurred in a traditional IT model of maintaining data rooms.

Also, IaaS seems to be the best fit for all size business, especially catering to businesses' requirements of 24X7 availability and easy accessibility of IT enabled services,. In terms of efficiency, cost effectiveness, IaaS scores more than owning on-premise data centers.

IaaS providers confirm more uptime, consumption of less power and space, availability of compute capacity and storage as per the fluctuating business demands. They assure robust security mechanism in place to safeguard infrastructure, which will be costly to provide in-house.In comparison to in-house data centers, IaaS providers deploy business grade tools like Cpanel etc. for better administration and governance.

Let us have a quick look at the cost benefit of adopting IaaS as an alternative to building a data center and maintaining in-house servers. It helps you to cut down:

- Network connectivity costs
- Compute servers
- License costs for operating systems
- Storage cost
- Data center construction costs
- Power and cooling costs
- Data Transport Costs
- Labor Costs
- Downtime costs
- Monitoring and maintenance costs

There are numerous economic benefits that a company attains by making a move to IaaS in regard to storage, servers and networking components. In fact, not utilizing the cloud hosting resources for infrastructure services can have an adverse impact on a company's growth.