Cloud Server vs Dedicated Server: Which One is Best for Your Business?

As a business, you will have a website, mobile app, or enterprise software. You would have to host them so anyone can access them using the internet. There comes the need for the server.

The server is a system that provides us with space and resources so that our web page or mobile is linked with the internet and all can access them.

The server can be a simple web hosting plan, a dedicated server in a data center, or a virtualized server in the cloud. Wherever you prefer to host, you need availability, reliability, durability, performance, and cost-effectiveness.

Picking the perfect web host is mandatory for every business as every company needs a website and a fast server to host it on. Even a slight difference in page response can make a company lose its customers to its competitors.

Google’s algorithm includes page speed as a ranking factor. So, if your customers are leaving your web pages for their load time, your ranking is suffering ultimately. That says enough about the importance of web hosting and how it impacts the company.

Cloud servers and Dedicated servers play a vital role in the IT infrastructure of most modern businesses. When you have a blog or a WordPress website with decent traffic, a traditional web hosting plan from GoDaddy can do them justice.

But, when you have a growing website or mobile app that sees a sudden surge in visitor traffic and demands lots of computing power to handle performance needs like load speed, graphics, and video, then it's time to upgrade your server.

Many organizations are already moving from traditional hosting platforms like dedicated servers. Understanding the server types is crucial to choose the right one for your applications.

Read on to know the difference between dedicated servers and cloud servers. Both of them have their own pros and cons. This blog will give you some valuable insights that will help you make an informed decision.

What is a Cloud Server?

A cloud server is a virtual server that you can configure to provide performance, security, and control, similar to a dedicated server. Rather than hosting it on your dedicated physical hardware, it resides in a shared virtualized environment managed by your cloud hosting provider.

With a cloud server, you don’t have to share your hardware with other customers. Additionally, you only pay for the exact amount of server space used by you. Cloud servers even allow you to scale resources up and down based on your needs. Thus, you are not paying for idle infrastructure costs when the demand is low.

Businesses can optimize IT performance without any additional costs and yet manage fully dedicated infrastructure. Often organizations with variable demands and workloads find cloud servers ideal for their business.

Pros and Cons of Cloud Server

Knowing the pros and cons of a cloud server will help you learn whether it is an ideal fit for your business.

Pros Cons
  • Rapid server deployment as one can create new servers immediately.
  • Increased uptime and performance due to redundant components.
  • Scale-up resources instantly as demand spikes.
  • Pay only for what you use.
  • Limited access to large amounts of CPU, memory, and disk space, although custom plans are available.
  • More expensive for the same amount of resources.

The increased cost of cloud servers comes with improved services as well. Whereas, with a dedicated server, you have to pay for the resources even if you are not using them. You have to choose the appropriate server depending on your needs.

Applications Suitable for Cloud Servers

Applications that demand rapid server deployment, optimal uptime, and instant scalability can opt for a cloud server. Most of these applications tend to evolve regularly and have to be set up across multiple cloud servers rather than a single server. Some of the most well-known cloud applications include:

  • eCommerce sites
  • Email servers
  • SaaS applications
  • Small business applications
  • Personal game servers

What is a Dedicated Server?

A dedicated server is a physical server that you bought or rented solely for your business purposes. Large businesses and organizations that require exceptionally high levels of data security opt for dedicated servers in general. Plus, companies that have steady and high demands for server capacity too go for dedicated servers.

With dedicated servers, businesses still need the IT capacity and expertise to manage ongoing maintenance, patches, and upgrades. Organizations that use I/O-heavy applications such as databases and big data platforms find significant value in a dedicated server.

Pros and Cons of Dedicated Server

Dedicated servers have their own pros and cons when compared to cloud servers.

Pros Cons
  • Access to large amounts of CPU power, RAM, and hard disk space.
  • No up-front hardware costs.
  • Custom hardware configurations available.
  • Need not share the server with other users.
  • It is cost-effective, provided you are using resources efficiently.
  • Longer deployment times.
  • Difficulty in migrating and upgrading.
  • Inability to scale resources as demand rises.
  • Server resources may turn unused.

Applications Suitable for Dedicated Servers

A dedicated server is a physical device that is manually built, and you can access it in around 8 to 24 hours. Dedicated servers are generally suitable for stable applications which do not demand resource spikes or require hardware upgrades in the future. Also, they are perfect for applications that don’t demand rapid server deployment and applications that require a high level of CPU processing, RAM, and disk space.

Some applications that belong to the above-said criteria, including:

  • Large Database Hosting
  • Game Server Nodes
  • VPS/Shared/Reseller Hosting Nodes
  • Big Data Analytics

Which Server is More Cost-effective? Cloud or Dedicated Server?

With a cloud server, you can pay for what you need for the moment and upgrade later. Of course, it is expensive per month for the same resources. But, you will not pay for resources that are not in use or staying idle.

Moreover, with cloud servers, you will receive bills depending on a post-paid billing platform. Thus, businesses have to pay only for resources they actually used. In the case of dedicated servers, they are pre-paid and billed at the beginning of every month.

You can leverage the most suitable server according to your business model. Yes, there is no one correct answer for the cost-effective server. It entirely depends on your business requirements.

Alternate Hosting Solutions

Now, let us see some of the other alternate server options available other than dedicated and cloud servers.

Hybrid/VPS Servers

Hybrid servers are similar to cloud servers but vary significantly. Cloud servers are virtual servers hosted in a virtual environment. But, hybrid servers are not connected to redundant storage, compute, and memory. Hence, if the VPS node goes offline, the server also goes offline. Therefore, hybrid servers cannot scale.

Colocation

A colocation server is nothing but a privately-owned server with a piece of network equipment in a third-party data center.

If you prefer to invest in your own hardware, but store the server in a data center and pay only for network, power, and storage in a rack, then you should go for Colocation.

Final Thoughts

In today’s cut-throat competition, your business can stand out only if you pay attention to all the minute details that come along the way. Your website or mobile application represents your business online, and hence people judge you based on its performance. So, the look and feel, interactivity, load speed of your website or app do matters the most.

With Google’s algorithm updating now and then, page speed plays a crucial role in ranking. Some of you may have started as a small business with limited traffic. But, as your business evolves and attracts more traffic, you need to watch out for better options and upgrade your server.

The blog has discussed several differences, advantages, and disadvantages of cloud and dedicated servers in detail. Hopefully, this article has helped you make an informed decision in choosing the suitable server for your business needs.

Contact

However, if you still have questions about which hosting type to choose, you can reach us at Cypherox Technologies. Our technical team will guide you to find a suitable server that can serve your business purpose precisely. We look forward to helping you in growing your business and scaling heights.