How to Choose an IaaS Provider

Infrastructure-as-a-Service (IaaS) has transformed IT resource management, freeing businesses from traditional infrastructure limitations. By treating infrastructure as a service, companies can scale efficiently, reduce operational costs, and focus more on growth instead of hardware constraints.

However, IaaS is a competitive market, and choosing the right provider for your organization’s needs is becoming increasingly difficult. So, how do you choose the right IaaS provider to partner with?

This article presents the essential factors to consider when choosing an IaaS provider. The right provider offers much more than on-demand cloud computing resources. It delivers support, innovation, and operational improvements that drive business success. Selecting an IaaS provider and turning to a cloud infrastructure should align with business goals and account for future growth.

How to Choose an IaaS Provider in Cloud Computing

Choosing the right IaaS provider is a critical decision that can significantly influence an organization’s success. Given that many options are available, making an informed decision is essential.

Select an IaaS provider that best aligns with your budget restrictions, technical needs, and business goals. Many factors can influence this decision, and each factor can dictate the effectiveness of the cloud infrastructure.

Below are the main things to consider when evaluating an IaaS provider.

1. Cost and Pricing

IaaS reduces both CapEx and OpEx, so it’s an appealing option for businesses. However, there is still a major constraint when choosing an IaaS provider: the price of using their resources. Provider prices vary, and multiple pricing models are available, affecting your IT budget and overall cloud return on investments (ROI).

To meet various budget requirements and business needs, IaaS providers offer multiple pricing models to minimize cloud computing costs further:

Pay-as-you-go. Pay only for what you consume, billed hourly or monthly. The model is flexible and ideal for small businesses or industries with fluctuating demands (e.g., retail during the holidays).
Reserved instances. Commit to a specific resource for a longer time (1-3 years) at a discounted rate. It’s suitable for stable workloads (e.g., production environments or databases) and allows predictable budgeting.
Spot instances. Utilize discounted and unused resources based on market demand. The model is cost-effective, but the resources are not guaranteed. It’s best suited for non-critical workloads due to possible interruptions, making it suitable for tasks such as machine learning.

Many IaaS providers also have free tiers for new customers, offer discounts, enable combining different pricing models, and have built-in cost management tools.

2. Scalability

Scalability enables an organization to grow and adapt based on changing demands. Business needs fluctuate, so a scalable infrastructure is essential for handling these shifts, especially during traffic spikes and sudden growth.

A well-planned scalable infrastructure addresses these problems by handling sudden load increases and minimizing downtime or lag. Typically, IaaS providers utilize cloud scalability to allow resource provisioning and de-provisioning on demand. It creates an efficient scaling model that balances resources based on whether it’s currently a low-demand or high-demand period.

When evaluating an IaaS provider, there are some key considerations related to scalability to keep in mind. The sections below explain the main features IaaS providers offer and what they are.

Vertical and Horizontal Scaling

IaaS providers offer two approaches to scaling:

Vertical scaling (scaling up). This approach adds required resources to an existing instance and focuses on performance increases. For example, if a virtual machine (VM) has low RAM, adding more RAM to the instance results in scaling up. Vertical scaling is ideal for quick performance boosts, like in product launches, but is limited to the configuration of a single instance.
Horizontal scaling (scaling out). This approach adds a new instance to distribute the workload and focuses on growth. For example, if a VM is low on processing power, launching additional VMs and distributing the workload helps handle these increases. Horizontal scaling suits businesses with distributed architectures and high traffic volumes.

Businesses often combine both models to address varying demands. Flexible scaling options are essential for companies that aim to adapt to market opportunities and minimize disruptions. See our in-depth horizontal vs. vertical scaling guide for more information about the differences.

Auto-Scaling

Auto-scaling adjusts resources dynamically based on real-time data. This is a valuable feature for businesses with fluctuating workloads and rapidly changing demands. Apart from optimizing performance, auto-scaling is cost-effective and ensures you only use the resources you need when you need them. It prevents over-provisioning and reduces operational costs.

Load Balancing

Load balancing is a service that distributes workload across several instances. It aims to improve application reliability and performance during peak times so that no single resource becomes overwhelmed.

IaaS load balancers also monitor instance health and re-route traffic from problematic instances. A feature like this is a game changer for businesses requiring high reliability.

3. Security

Security protects data and applications from unauthorized access and data breaches. IaaS providers and businesses have a shared responsibility through governance and compliance to safeguard assets.

Data breach statistics show that security failures cause substantial financial losses and reputational damage, which makes choosing an IaaS provider with robust cybersecurity measures vital. Strong security policies and cloud security solutions are essential for building customer trust.

When analyzing a potential IaaS provider, consider the certifications, regulations, and advanced security features they offer. An IaaS provider should have support for industry-specific regulations like GDPR, HIPAA, or PCI DSS. Ensure the provider supports security audits and has incident response plans.

Key security features IaaS providers offer include:

4. Availability

Availability is the uptime an IaaS provider guarantees, indicating how often services are accessible and operational. High availability is essential for business continuity in the cloud since it decreases downtime.

Outages can disrupt operations and damage customer trust. Choose a provider with strong availability features, especially if uninterrupted service access is essential. Industries such as SaaS, finance, and healthcare are examples that require real-time access to critical information.

IaaS providers offer the following availability features:

Service-Level Agreements (SLAs). Review the SLA terms carefully, as they define service expectations for uptime, often expressed in percentages (e.g., 99.99% uptime for specific data center tiers). If SLA requirements are unmet, providers usually offer refunds or credits.
Disaster recovery. To ensure high availability, disaster recovery services replicate data and applications across multiple locations. This includes failover and failback mechanisms to switch to a backup server and restore operations. These strategies are essential for business continuity management and help minimize downtime.
Redundancy. IaaS providers use redundant systems to reduce the risk of a single point of failure. If one system fails, another automatically takes over. A broader geographic presence also offers higher reliability by replicating data across different regions. Redundancy technologies include backup servers, network paths, and additional storage.

5. Performance

Performance reflects how well IaaS resources meet business demands through KPIs, such as processing speed, resource allocation, and response time.

Poor performance affects user experience and productivity. Businesses that rely on high-performance applications should prioritize it when selecting an IaaS provider.

Some key considerations related to performance include:

Latency. Latency measures the speed at which data travels over a network. If a data center is far from the business, it leads to high latency and slower response times.
Throughput. The amount of data processed in a specified timeframe is known as throughput. A higher throughput is better, and it indicates the infrastructure can handle more data efficiently. Throughput is essential for high-performance computing applications.
Resource allocation. For optimal performance, proper resource allocation is essential. CPU, memory, and storage should address an application’s needs. Likewise, businesses should be able to adjust these resources based on fluctuating demand.

6. Location

The location of an IaaS provider’s data centers directly affects latency, regulatory compliance, and disaster recovery options.

Consider these two factors when evaluating the geographic location of an IaaS provider:

Local. Local data centers have faster response times for nearby users and meet local regulations. Applications that require quick response times benefit from choosing a local data center.
Global. A global presence enables service delivery everywhere and caters to users in multiple regions. This setup creates redundancies across different locations and has stronger disaster recovery options.

7. Integration

Integration determines an IaaS provider’s compatibility with existing systems. It helps achieve operational efficiency by offering resources that help connect to a business’s existing software or workflows.

Check if the IaaS provider offers the following:

APIs. They automate IaaS interactions and enable system communication. APIs help create automated workflows and minimize manual intervention. Automation tasks include resource management, such as provisioning VMs, scaling based on performance monitoring, etc.
Compatibility. Various tools simplify cloud resource management. Providers typically integrate with popular DevOps, analytics, and monitoring tools to streamline cloud resource management.
Partnerships. An IaaS provider with strong partnerships offers further integration capabilities and tools. These collaborations aim to simplify a provider’s integration by offering additional tools, resources, and support.

8. Support

Support is the assistance and resources an IaaS provider offers for infrastructure management and troubleshooting. A provider with reliable support is essential when resolving issues, and it can help avoid disruptions or downtime.

Choosing a provider with suitable management and support options impacts daily operations. Consider the following aspects when it comes to support and management:

Self-service tools. Providers often have tools, like dashboards or applications, to simplify resource management or monitor infrastructure health. These tools are often transparent and offer direct insight into infrastructure usage and costs.
Managed services. IaaS providers also have fully managed services. This service benefits businesses aiming to offload infrastructure management and focus on other tasks. The provider handles routine maintenance, updates, backups, etc.
Support levels. Multiple support tiers exist to address different types of problems. Some providers offer different levels to enable faster response times or access to dedicated support teams for specific users. Higher-level support teams are useful for companies with complex infrastructure.
Additional services. Many providers extend their offerings beyond infrastructure services. Typically, they also have PaaS, SaaS, DRaaS, and other solutions. Combining these services can create a comprehensive ecosystem that fits your business needs.

Why Should I Choose Only One IaaS Provider?

Choosing between one or more IaaS providers affects the cloud infrastructure strategy. Although it prevents potential vendor lock-in by spreading across multiple vendors, there are many reasons to stick with a single IaaS provider:

Management. Juggling between multiple IaaS providers creates operational, billing, and support complexity. By using a single provider, these processes are unified through a single vendor, which allows the IT team to focus on resource optimization instead.
Cost. Sticking to a single IaaS provider can be cost-saving. Providers often reward high usage and loyal customers, which creates partnerships and opens doors to pricing negotiations, discounts, and favorable terms.
Performance. Using one provider leads to better performance and reduced latency. Data transfer within the same cloud environment is faster and more efficient.
Security. Security management is simpler when working with a single provider. It reduces the attack surface and allows consistent security policies to be applied to the whole infrastructure.
Partnership. A long-term relationship with an ideal IaaS provider has significant advantages. Providers are willing to provide better support and custom solutions and drive innovation that aligns with your business goals.

Even though using multiple IaaS providers seems appealing, there are many benefits to choosing a single provider. Focusing on a single partnership leads to many advances and a greater success story for your startup or enterprise.

Discover the Power of IaaS with phoenixNAP

phoenixNAP is a trusted IaaS provider that delivers scalable, secure, high-performance cloud infrastructure solutions. We understand the unique challenges businesses face. Our offers enable businesses to focus more on innovation and growth while we manage and optimize the hardware to meet your needs.

Partnering with phoenixNAP gives you access to dedicated resources and exceptional support to ensure your applications run smoothly and securely. Below are several IaaS solutions by phoenixNAP. For additional information, see how phoenixNAP’s IaaS solutions can transform your business.

Dedicated Servers

phoenixNAP’s Dedicated Servers are single-tenant environments configured based on customer requirements. The flexible deployment, powerful hardware, and custom configuration options are suitable for various use cases.

Use dedicated servers to run critical applications, large databases, and complex analytics. The dedicated infrastructure has a DDoS-protected network and ensures business continuity. Users have complete control over their server and SLA-backed uptime for critical workloads.

Bare Metal Cloud

phoenixNAP’s Bare Metal Cloud (BMC) servers are API-driven dedicated servers. With over 40 pre-configured instances, you can choose a server that best suits your processing, memory, and storage requirements. Server provisioning and management is possible using APIs or a user-friendly web portal.

Use cases for BMC servers include production workloads (to lower TCO), multi-cloud strategies, or adding more resources for an unanticipated workload. The servers are deployable at global and edge locations with hourly billing options. Use our cloud pricing calculator to help you choose and plan the optimal configuration for your workload.

Data Security Cloud

phoenixNAP’s Data Security Cloud is a multi-tenant and secure-hosted infrastructure platform built in partnership with Intel® and VMware®. It uses the latest hardware security technologies, virtualization controls, and threat detection mechanisms to protect data.

The data security cloud uses software-defined networking technologies to ensure optimal performance while maintaining security. By implementing zero-trust policies and micro-segmentation, the Data Security Cloud improves overall security and minimizes potential vulnerabilities.

Managed Private Cloud

phoenixNAP’s Managed Private Cloud is a dedicated single-tenant infrastructure solution for mid-sized and large enterprises. It uses advanced virtualization technologies and enterprise-level architecture to ensure high performance and reliability.

The platform is perfect for businesses that require a compliance-ready infrastructure that helps meet regulatory standards and protects sensitive data. Managed Private Cloud flexibly scales resources as needed to support evolving demands.

DRaaS

phoenixNAP’s Disaster-Recovery-as-a-service (DRaaS) solution ensures data availability and business continuity. Designed for VMware environments, the backup and recovery services are delivered through a cloud infrastructure.

Using platforms such as Veeam and Zerto, the data is continuously replicated to a secure location, which enables quick recovery in case of an outage or breach.

Choose your IaaS Provider Wisely

For businesses looking to harness the power of cloud computing, selecting the right IaaS provider is a critical decision. Consider your organization’s requirements and define the focal point to help you navigate the market. A single provider can simplify management and provide many benefits.

Evaluate the main factors and choose an IaaS provider that supports your future growth. phoenixNAP offers many solutions that are flexible and customizable to help you meet your goals effectively.