It would be optimal for a cloud service provider to outsource their IaaS(Infrastructure as a service) where only handful of things are managed by vendors which includes virtualization, servers, storage and the networking part. As the functionalities which will be managed by vendor(to whom the IaaS is outsourced) will be less, hence less concern for client's project and related data and information exploitation in case the vendor is not trustworthy.
Assume a client(customer of our company) wishes to use our PaaS or SaaS service, and if one of these services are outsourced to a vendor rather than IaaS, then concern for client data and related project information risk will be high as the vendor will have access to our client project's information and any wrong or unpleasant act of vendor will ultimately demean our image.
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