|What is the Difference Between Cloud Servers and Dedicated Servers


August 31, 2016

Growth and Productivity, Scaling Your Business 5 min read

What is the Difference Between Cloud Servers and Dedicated Servers?

Cloud servers and dedicated servers are two of the popular options to host an e-commerce website, or other websites that require high levels of resources. But what is the difference between the two, and which one should you choose? In today’s article, we will discuss each one in detail to help you determine which one suits for your business.

As more companies see the need to go digital to simplify their business operations, there is a greater demand for a cost-effective hosting solution that can handle a growing volume of data that businesses handle each year.  Finding a platform where they can safely and conveniently host their data is every business owner’s critical concern.

Nowadays, the two viable options for hosting is through cloud servers and dedicated servers. Understanding their differences and what each can offer will help you decide the right hosting solution for your business.  

Here’s a comparison table of both servers, with an in-depth explanation below. 

Best for small to mid-size companies  Best for mid- to large-sized companies 
Easy to scale up/down on memory, bandwidth, or storage space depending on need  Owner has full access and control over server management 
Fast speed c/o multiple servers in various locations  Fast speed c/o exclusive use of server resources 
Secure performance c/o stability protocols  Secure performance c/o no other website sharing the server 
Cost-effective; pay only for what you use  Expensive, but worth the price if you’re handling huge traffic and sensitive data 

Cloud Servers

Cloud servers

This is a popular option for small and mid-sized companies, or organisations with flexible data demands. It can help companies enhance their computing performance without the considerable expense of managing a dedicated environment.

Cloud servers can be set up to provide the same level of control, security and performance that you can expect from a dedicated server. However, it will not be hosted on a physical hardware dedicated to your company.

Instead, it is hosted on a shared environment managed by your cloud hosting provider. In this way, you can still take advantage of the economies of scale of a shared hardware with other customers.


Planning how much resources to budget for is quite simple. When cloud servers are utilized efficiently, you can scale up or down your resources (e.g. memory, bandwidth, storage space, etc.) to meet the demand. You can avoid paying for idle times when the demand is low. Billing is based on actual usage on a per-hour basis, so you only pay for the amount of server resources you actually use. This allows for more flexibility depending on your usage.

Speed & Performance

With cloud servers, it is  easy to diversify your network. You can host your website and applications on servers nearest to your customers, making it possible for them to access your content at breakneck speeds.

Since it runs on multiple servers, when one of the servers is down, the other connected servers can continue to provide hosting. Since cloud computing offers faster data recovery, no time is ever wasted.  This translates to better user experience for your customers.

When software issues arise, your cloud servers are isolated from your environment. In this way, you won't have to worry of other servers harming yours and vice versa. If other users strain their cloud servers, this won't create a dent on your resources because it is optimized for enhanced stability.

Some business owners might have concerns about the security of its infrastructure. Most cloud hosting providers overcome these worries over security by providing a dedicated customer support for better control and security.


It is more economically cost-efficient than traditional dedicated servers. For just about the same cost, you get more resources and the performance is much faster. With cloud computing, operational expenses are trimmed down since you only need to pay for what you use. Keep in mind, costs here are directly proportional to your site's requirements.

Dedicated Servers

Dedicated servers

Just as the name suggests, a dedicated server is a physical server that companies can purchase or lease to host your entire business. This is recommended for large companies or organisations that require high-level of security and round-the-clock availability.

Some business owners may prefer to store and manage their data on their own dedicated servers, rather than through a remote virtual environment.

Dedicated servers provide full access and control over your data. It is also known to be much more secure and exceptional in terms of performance and reliability, since the connection is direct and contained.

Nonetheless, there are downsides with dedicated servers and they include: it is time-consuming to set it up and it requires an IT expert to manage and fix it when hardware issues arise. It is also much more expensive than other types of servers since the entire server is deployed for your own use only.

However, if you are not confident with handling the technical side of things, we suggest that you go for managed dedicated servers as your web hosting provider will manage the setup for you.

The monthly subscription fee will already include the 24/7 priority customer support along with the enterprise-grade dedicated servers.


When you choose a dedicated hosting, you get full, exclusive resources from a single server. This means that you don't have to worry about other websites hogging the RAM and CPU resources. If there are technical issues running on another website, this won't affect or slow down your server.

Speed & Performance

Having a dedicated server guarantees highest uptime for your website. If your website receives high traffic, dedicated hosting provides better reliability, and stability than on a shared platform. Dedicated servers allows a more robust security especially for organizations that store and manage extremely sensitive information.


While a dedicated server is far more expensive than a shared server, it offers far more advantages. Choosing a managed dedicated server can be a cost-effective option for businesses since they don't have to take the burden of managing it themselves. . The dedicated hosting provider will help manage the cost of installing and managing server equipment which helps lower the overhead expenses and improve return on investment for businesses.

Which one is right for you?

Again, choosing the right server will depend on what your business needs are. A cloud server can be sufficient for small to mid-sized e-commerce sites with erratic demands.

For first-time web hosting clients, cloud hosting is a great start when testing your web hosting service. With cloud servers, your data is always available around the world, while paying only for what you actually use and you can scale it as your website grows.

However, for sites that may require more robust performance, reliability, full and sophisticated control and management, dedicated server is the best way to go.

This is highly recommended if you store extremely sensitive data, such as personal or financial records.

Are you still deciding whether you should have cloud or dedicated server hosting for your business? Worry no more.

Vodien, Singapore’s biggest ICANN-accredited managed hosting provider, offers lightning fast and enterprise-grade hosting solutions that suit all types of business or personal needs.

Make sure to get in touch with our award-winning customer care specialist so they can start discussing options that’s right for you. 

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