Acronym
IaaS
Infrastructure as a Service. Example in this category include Amazon Cloud where Amazon provides the VMs and the networking components / infrastructure as a service.
PaaS
Platform as a Service. Example in this category include Google App Engine (GAE). We develop our application using development tool provided by GAE. After we upload our application, GAE is responsible for monitoring and scalability. We still need to develop our application in ways that are scaleable, but GAE will be responsible for monitoring the availability of our application, and if something goes wrong with the platform, GAE is responsible for fixing the problem. There are some problems with cloud computing (both with IaaS and PaaS) because we are using shared resources. Amazon Cloud has feature that allow our network traffic to be segregated from other users, but we still share a number of things. Such as our VM may be run on the main physical machine that is also running other VMs. Even though GAE is responsible for fixing the problems, can we really afford not to be involved? The distinction between IaaS and PaaS is really blurry.
DaaS
This is an abbreviation for Desktop as a Service or Data as a Service
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