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Infrastructure as a service (IaaS) is where a provider makes general computing services available to a user. This can include desktop computing, servers and networking. The end user is able to control and configure the services provided by the platform. This type of service is typically provided by a cloud service provider such as Microsoft Azure but could also be provided by an outsourcer.
An advantage of this is that the user can pay as they go for the services they use, without facing high upfront costs. These types of services are often referred to as being elastic as the computing resources provided can grow and shrink based on demand. In addition to this there is a reduced to for ongoing maintenance of hardware or the space and facilities required to house servers.
A disadvantage can be the risk of becoming tied to a single service provider where costs may escalate in the future. It may also not be possible to move completely to a remotely hosted service. In the case of a factory environment, it may be too high risk to rely on remote connections to operate production lines.