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Harish Dhivare
Harish Dhivare

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Cloud hosting plans offer scalable server resource allocation based on hardware virtualization, whereas dedicated server plans include a fixed allocation of isolated RAM, CPU, and SSD/HDD storage that can provide better performance and increased security for online business applications.

Let’s understand first, what is Dedicated Hosting & Cloud Hosting,

A dedicated server is a physical server that is purchased or rented entirely for your own business needs. Dedicated servers are typically used by large businesses and organizations that require exceptionally high levels of data security, or organizations that have steady, high demands for server capacity.

With dedicated servers, businesses still need the IT capacity and expertise to manage ongoing maintenance, patches and upgrades. Businesses using I/O-heavy applications, such as databases and big data platforms, find significant value in bare metal dedicated hardware.

Let us see some pros and cons of using Dedicated Hosting.

Pros :

Cons :

  • Advanced Technical Knowledge
  • More Expensive
  • Scalability


Cloud servers can be configured to provide levels of performance, security and control similar to those of a dedicated server. But instead of being hosted on physical hardware that’s solely used by you, they reside in a shared “virtualized” environment that’s managed by your cloud hosting provider. You benefit from the economies of scale of sharing hardware with other customers. And, you only pay for the exact amount of server space used. Cloud servers also allow you to scale resources up or down, depending on demand, so that you're not paying for idle infrastructure costs when demand is low.

With cloud servers, you can optimize IT performance without the huge costs associated with purchasing and managing fully dedicated infrastructure. Businesses with variable demands and workloads often find that cloud servers are an ideal fit.

Let us see some pros and cons of using Cloud Hosting.

Pros :

  • Cost-Effective
  • Easy to Implement
  • Scalability and Flexibility
  • Backup and Disaster Recovery
  • Accessibility

Cons :

  • Bandwidth Issue
  • Limited Control
  • Privacy
  • Vulnerable to Attacks
  • Downtime

What is the difference between Dedicated Hosting and Cloud Hosting
This article explains the difference between cloud and dedicated servers and outlines the features of both hosting types. We provide all the info you need to make an informed decision and identify the hosting option that fits your use case, business needs, and budget.

Cloud and dedicated servers are common hosting choices for companies looking for high reliability and performance. While the two hosting models rely on different infrastructures. Both cloud and dedicated servers can support any service or app you want to host. The two server types also rely on similar backend tools.

If you know how to manage them correctly, both dedicated and cloud servers are excellent hosting choices. Neither model suffers from performance lags during traffic spikes, and both of them process data faster than a shared or VPS host.

1. Performance
Dedicated Hosting : Companies that require consistently high performance tend to operate on a dedicated server. A dedicated server offers unrivaled processing speed because:

  • These units process data locally, so there is little to no delay in retrieving and processing info.
  • Dedicated resources ensure there is no lag due to request queuing.

Unless you use all the processing power at once (which is highly unlikely), a dedicated server does not need to queue requests. This capability makes dedicated servers ideal for use cases in which microseconds count, such as heavy computing or high-frequency transactions.

Cloud Hosting : While cloud servers are not slow compared to shared hosting, these devices are not as fast as a dedicated server. What slows down a cloud server is the way these units handle requests:

  • Cloud servers access data from the SAN, so each request must traverse the backend infrastructure during processing.
  • Once the server returns data, the hypervisor must still route the info to the allotted processor. This extra trip can introduce latency.

Since multiple cloud environments operate on a physical server and tenants share the same physical network, these units can also suffer from occasional bandwidth throttling. Dedicated servers do not run into throttling since a single host uses the network interface.

2. Scalability
Dedicated Hosting : It provides high-level security and scalability. Dedicated hosting means you can have a whole server at your disposal—allowing you to scale as and when it’s needed, including features and functions at the different stages of development. This means you have a lot of control over the server from what software you implement, to the capacity for scalability, so that you can change whatever you need, whenever it’s required.

Cloud Hosting : With more resources and faster access to them, cloud hosts offer incredible scalability for customers. This is why these servers are used for other cloud-based services, collectively known as cloud hosting.

3. Price
Unless you are running a configuration on a private cloud, cloud servers have a lower entry cost than a dedicated server because of:

  • The lack of upfront hardware investments.
  • The pay-as-you-go pricing model.
  • On-demand resources clients can adjust in real-time.

Dedicated Hosting : Short-term cost benefits of cloud servers are obvious, but dedicated servers are more cost-effective in the long run. If you have a consistently high requirement for hosting, dedicated servers are the more cost-effective option as cloud providers tend to charge more for : Bandwidth, SQL storage and Disk space. Usually around $79.99 per month for the cheapest Indsoft Dedicated Hosting.

Cloud Hosting : Once you deduct the initial fee, running a dedicated server is cheaper than what you have to pay for the same setup in the cloud. However, you have to cover the cost of the entire unit regardless of how many resources you are using, so a dedicated server requires precise resource planning. Usually around $9.99 per month for the cheapest Indsoft Cloud Hosting.

4. Security
If you side with the right provider, a cloud server is not an unsafe type of hosting. You will share the environment with unknowing tenants, though, so some concerns around data privacy are valid

Dedicated Hosting : A dedicated server offers unparalleled data privacy as a single tenant uses the hosting environment. You do not need to worry about other users, but you will have to take a hands-on approach to security (unless you opt for managed services).

Dedicated servers also require you to dedicate more time and effort to creating backups. Nevertheless, the single tenancy makes dedicated servers the go-to hosting option for companies that wish to comply with privacy regulations like CCPA and GDPR.

Cloud Hosting : While a cloud server comes with a hands-off approach to security, a provider typically offers a variety of measures you can implement to protect the environment, such as: Data encryption, Firewalls, Backup services, Cloud monitoring.

5. Operating System
Dedicated Hosting : Dedicated hosting allows for complete customization. Since you don’t have to share the server with any other websites, you can choose the operating system, configure the environment to run specific applications, and optimize the amount of bandwidth and memory you need.

Cloud Hosting : A cloud server has limited customization options in terms of hardware and software. Users are limited to offerings provided by the service provider, so clients typically cannot choose whatever hardware or OS they desire.

Dedicated Hosting vs. Cloud Hosting: What’s Best For My Website?
Before you choose your hosting environment, you should first consider your:

  • Allocated budget.
  • Uptime and performance needs.
  • Current toolchain and apps (especially if you have legacy apps).
  • The in-house team's skill set.
  • scalability requirements.
  • Business plans, goals, and objectives.

Once you understand your business needs, you can consider what server type you should use. Both cloud and dedicated servers come with a line of benefits, but each type excels at different use cases. Cloud servers perform best for:

  • E-commerce sites with seasonal surges in traffic.
  • Small business apps with unpredictable usage levels.
  • Email servers.
  • IaaS, PaaS, or SaaS offerings.
  • Apps that require rapid server deployments.
  • Systems that need uninterrupted hosting.

Companies that already have a highly skilled in-house team should also consider deploying a dedicated server. Businesses and startups that lack in-house expertise should first look at cloud servers as these units come without hardware maintenance.

Defining the right solution will depend on your business goals and objectives, as well as your immediate and long-term IT requirements.

We’re here to help ensure you assess these needs and find the best possible solution. For more information on our Dedicated hosting and Cloud hosting options — and how we can help you build an architecture for your individual needs — contact us today.

Contact us for Free Trial : +91-022-2863-1151 or email us : mailto :

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Discussion (1)

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How do cloud hosting plans and dedicated server plans differ in terms of resource allocation and their potential impacts on performance and security for online business applications?