Focusing development resources and spending less headcount on unneeded expertise are both benefits that intuitively translate into reducing costs. But beyond these obvious things are even more ways that PaaS saves real money compared with doing it yourself on IaaS.
With PaaS you are tapping into a real economy of scale. Imagine the number of hours it would take to set up the core stack—the platform-level components—for your applications. Imagine the hours consumed on an ongoing basis to maintain the stack. Imagine the cost of those hours, and consider the incremental value from this work to your application. Now consider those same costs amortized across thousands of applications. There is very little differentiating value from doing this low-level work yourself, so clearly, buying platform from a provider is more efficient than building it yourself.
With PaaS you are tapping into a real economy of scale. Imagine the number of hours it would take to set up the core stack—the platform-level components—for your applications. Imagine the hours consumed on an ongoing basis to maintain the stack. Imagine the cost of those hours, and consider the incremental value from this work to your application. Now consider those same costs amortized across thousands of applications. There is very little differentiating value from doing this low-level work yourself, so clearly, buying platform from a provider is more efficient than building it yourself.
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