Cloud Hosting vs Dedicated Server: Which Is the Right One for You?

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Cloud Hosting vs Dedicated Server: Which Is the Right One for You?

When you build an application or a website, it needs to be hosted on a server for the world to access. A few decades ago, enterprises would procure, build, and host all servers in-house in a setup called ‘on-premise’ data centres. 

Today, however, enterprises have wider options when it comes to building their IT infrastructure. Cloud Hosting and Dedicated Servers are among the top choices. In both setups, you’re purchasing a hosting space on a server located outside of your premises. The physical servers are owned by a third party that either rents or sells them to you while you’re hosted at their data centre. 

Read on to learn about the difference between Cloud Hosting and Dedicated Servers. Explore each of their distinct features, benefits, and drawbacks so you can make the best decision for your business. 

What Is Cloud Hosting? 

In Cloud Hosting, one physical server is partitioned into several virtual servers. Each of these virtual servers is rented out to different customers. 

All virtual servers are part of a virtualised environment, which means they share the resources (RAM, storage, processor cores, GPUs, networks, etc.) of the underlying physical server. 

Resource sharing is managed by cloud computing technology, while all the hardware and server software is managed by the hosting company. You can select how much computing power and resources you need, and they’ll allocate it to you. 

Cloud Hosting Pros
Cloud Hosting Cons 

Less costly compared to Dedicated Hosting 


Agile and allows you to scale with on-demand resources

Resources are allocated dynamically based on your real-time needs 


Easy to set up and manage 


Lower performance quality as physical resources are shared by all virtual instances 



Hardware and software customisation options are comparatively low 


What is Dedicated Server? 

In the case of a Dedicated Server, an entire physical server is allocated to your business. 

Your enterprise owns all resources associated with the server (you can choose the configuration you want when choosing your hosting plan). 

Only your enterprise has access to this server, and unlike Cloud Hosting, none of the resources are shared by any other customer. 

You can choose to rent a Dedicated Server or buy one. Depending on the plan you choose, you can either take sole responsibility for your hosting (self-managed) or have a hosting service provider manage it for you (fully managed). You can think of a Dedicated Server as your own personal computer that is located offshore. 

Dedicated Server Pros
Dedicated Server Cons 
Consistently high performance because of dedicated resources 


Hardware and software are fully customisable to suit your needs 


Enjoy complete freedom on how you choose to use your server and software 


Set up and management requires expertise 


More costly compared to other hosting options like Cloud Hosting 


Servers are not agile as resource changes require hardware configuration, which makes scaling time and effort-consuming 


Cloud Hosting vs Dedicated Servers: A Summary 

  Cloud Hosting  Dedicated Server Hosting 
Infrastructure  A virtual instance hosted on a physical server is allocated to you.
An entire physical server is allocated to you. 
Tenancy  You share the underlying physical resources with customers assigned to the other virtual instances.
You are a single tenant on the server. 
Performance   Cloud technology aims to maintain performance among all virtual instances. However, the performance is lower as resources are being shared by multiple tenants.
Dedicated resources ensure consistently high performance.  
Scalability  Easily scale up or down as resources are allocated by cloud technology in real-time.
Scaling requires some time and effort as resources and hardware need to be set up based on the requirement.
Ease of use   

The servers are easy to set up and use with the hosting provider and the cloud handling the management and allocation.   



Servers are set up instantly. However, managing the server (or software, in the case of managed hosting) requires more personnel and care.

Customisation  Hardware and software customisation is limited to only a few predefined packages to choose from. 


Almost every aspect of its hardware and software is customisable to fit your needs. 



Setup cost is lower. Because you only pay for the resources you use, the operation costs are comparatively lower as well. 


Higher setup and operation costs. 

Which Is the Best Option for You? 

The comparison above presents the stark difference between the two. A Dedicated Server is more powerful but is costly and needs constant monitoring and care. On the other hand, Cloud Hosting is more affordable and flexible but might not be able to handle high volumes of traffic. 

Larger businesses with applications that experience enormous traffic and need uninterrupted computing resources are better off with a Dedicated Server. Meanwhile, smaller enterprises who want to host applications that witness low to medium volumes of traffic are better should opt for Cloud Hosting. 

Your best first step is to assess your needs and goals. See which of these options has the capability to help you seamlessly operate and foster your growth online. Check out our most trusted Cloud Hosting and Dedicated Server plans to learn more. 


An Author and Content Marketer @Endurance International Group (APAC), Aastha believes that great content drives action and helps businesses be more influential. With the experience of working with businesses globally, she understands the need to create tailor-made content solutions that are relevant, strong and create an impact for the right audience.