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Cloud IT services explained: types, examples and what you need

Everyone says cloud, few explain it. Here is what cloud IT services are, the main types, and what your business actually needs.

Andy Price · Founder23 May 2026 · 7 min read

“Cloud” is one of those words that gets used constantly and explained rarely. When a business owner asks me what cloud IT services actually are, the simplest answer is: it is renting computing power and software over the internet, instead of owning and running it all yourself.

In short: cloud IT services let you use servers, storage, platforms and software over the internet, paid for as you go, rather than buying hardware and maintaining it in a cupboard. They come in three main types (software, platform and infrastructure), and you almost certainly use them already, Microsoft 365 being the obvious example. Here is what they are, the main types, real examples, and what your business actually needs.

Key takeaways

  • Cloud IT services mean using computing and software over the internet instead of owning the kit.
  • The three main types are SaaS (software), PaaS (platform) and IaaS (infrastructure).
  • Most businesses already use the cloud daily through Microsoft 365, email and online file storage.
  • The benefits are flexibility, lower up-front cost, and scaling up or down as you grow.
  • The catch is that the cloud is only as safe as how it is set up and secured.
The three main types of cloud service: SaaS software like Microsoft 365, PaaS platform to build on, IaaS servers and storage on demand, plus cloud email, files, apps and backup

What are cloud IT services?

Cloud IT services are computing resources, storage, applications and platforms, delivered over the internet by a provider, rather than installed on your own servers. Instead of buying a server, keeping it in the office and maintaining it, you use someone else’s infrastructure and pay for what you use. It is the same shift as moving from owning a generator to simply plugging into the mains. For most businesses it means less hardware to look after, predictable costs, and the ability to work from anywhere.

What are the main types of cloud service?

People talk about the “top three” or “four main” cloud services, and it boils down to three core models, sometimes with a fourth added for completeness:

  • SaaS (Software as a Service): ready-to-use software you log into, like Microsoft 365, accounting tools or your CRM. This is what most businesses use most.
  • PaaS (Platform as a Service): a platform for building and running applications without managing the underlying servers.
  • IaaS (Infrastructure as a Service): servers, storage and networking on demand, for example in Microsoft Azure.

The “fourth” you sometimes see is either a deployment model (public, private or hybrid cloud) or a newer option like serverless computing. For most small businesses, SaaS does the heavy lifting and a bit of IaaS sits behind it.

What are some examples of cloud services?

You almost certainly use cloud services already. Microsoft 365 (email, Teams, SharePoint, OneDrive) is the classic example for business. Online accounting software, your CRM, cloud backup, file sharing and video calls are all cloud services. Behind the scenes, websites and business apps often run on cloud infrastructure like Azure. In other words, the cloud is not a future plan for most firms; it is already how they work.

What does a business actually need?

You do not need every type of cloud service. For most firms of small businesses up to 100 staff, the sensible setup is Microsoft 365 for email, files and collaboration, secured properly, with cloud backup behind it and any line-of-business apps moved to the cloud where it makes sense. The skill is not buying more cloud; it is choosing the right services, setting them up securely, and not paying for licences you do not use. The cloud is only as safe and cost-effective as how it is configured.

How we help with cloud IT services

We help businesses across Lichfield, Staffordshire and the West Midlands get the cloud working for them: the right Microsoft 365 setup, secure file storage, cloud backup, and Azure where it adds value, all configured and looked after properly. If you are not sure what you are paying for or whether it is set up safely, book a quick chat and we will give you a straight answer.

Frequently asked questions

What are the three main types of cloud service?

SaaS (software you log into, like Microsoft 365), PaaS (a platform to build apps on) and IaaS (servers and storage on demand, like Azure). Most small businesses mainly use SaaS.

Is Microsoft 365 a cloud service?

Yes. Microsoft 365 is the most common cloud service for business: email, Teams, SharePoint and OneDrive all run in the cloud, so you can work from anywhere.

Is the cloud cheaper than owning servers?

Often, yes, because you avoid big up-front hardware costs and only pay for what you use. But it depends on the setup, so the saving comes from choosing and sizing services correctly.

Is the cloud secure?

It can be very secure, but it is only as safe as how it is configured. Things like multi-factor authentication, access controls and backups still need setting up properly.

Do we need to move everything to the cloud at once?

No. Most firms move in sensible steps, usually starting with email and files in Microsoft 365, then other systems where it adds value. We plan it so there is no disruption.

– Andy Price, Founder & MD, Initial IT · 01543 524594 · hello@initialit.co.uk

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