Cloud Hosting vs VPS Hosting: How Do They Differ?

With rising consumer expectations, businesses need their sites to load quickly, always be available, and offer a great user experience. And the type of web hosting you choose plays a major role in both your website’s performance and availability. 

Cloud hosting and virtual private server (VPS) hosting are two of the best choices for many companies. If you’re trying to decide between the two, it’s important to fully understand the advantages of each before making a final decision. So let’s take a look!

What is cloud hosting?

Cloud hosting refers to the delivery of computing services via virtualization (running multiple independent systems on the same piece of hardware).

Unlike traditional hosting methods, cloud hosting utilizes a network of servers to create virtual machines and manage them with a hypervisor (the software that makes this possible). These machines interact independently of each other, granting essentially unlimited resources for your account if needed. This is a major benefit compared to shared and VPS plans, which can only offer finite resources, as they’re tied to specific pieces of hardware.

As a result, cloud hosting is highly scalable and flexible for businesses, no matter the size of the project.

For example, in a public cloud environment, providers can pool their resources so accounts automatically scale to meet website needs without requiring server upgrades. Plus, with pay-as-you-go pricing, if your usage goes down, your total cost may too.

Key features of cloud hosting

As a fast-growing sector of the web hosting industry, cloud hosting offers multiple advantages for organizations. Let’s review some of the key components that set it apart from traditional solutions:

• Scalability: Due to virtualization and pooling of resources, cloud hosting plans scale on demand to ensure optimal website performance. 
• Redundancy: Cloud hosts minimize downtime and data loss risks with the implementation of fault tolerance strategies, redundancy backups, and replication.
• Flexibility: Get greater account and server customization with advanced configurations, preferred OS installation, and database and framework management. 
• A pay-as-you-go pricing model: Along with their technical flexibility, cloud hosting plans often allow organizations to pay based on actual usage. 

WordPress cloud hosting

Cloud hosting offers a powerful alternative to traditional hosting models, and most cloud providers can be used to host a WordPress site. But should they?

WordPress professionals and ambitious site owners usually prefer a solution tailored specifically for the platform. That’s where WP Cloud comes in.

As the only cloud hosting infrastructure built specifically for WordPress, WP Cloud gives hosts and large agencies the opportunity to provide safe, high-performing cloud hosting to end users.

Quickly add an attractive new service offering backed by the WordPress experts at Automattic. Bring your own interface and revenue models, and let WP Cloud provide customers with a world-class experience while you sit back and get all the credit. 

For site owners, choosing a WP Cloud-powered hosting provider means near-perfect uptime, unlimited scalability, and worry-free management and security. 

Learn more (and get all the specs) about WP Cloud.

Types of cloud hosting

Cloud hosting falls into four categories: public, private, hybrid, and managed.

1. Public cloud

On a public cloud server, a host provides the resources and tools you need for your website. Plans are affordable and highly scalable; however, as this is available for users across the globe, they may not meet the security concerns of some organizations.

2. Private cloud

Private clouds are dedicated to a single organization, providing greater control, security, and customization options. This exclusivity comes at a greater cost than a public cloud hosting option.

3. Hybrid cloud

With a hybrid cloud, you get a blend of public and private cloud features. Your team can choose which areas of your workflow need extra layers of security, while enjoying the affordability and network management of a public cloud.

4. Managed cloud

A managed cloud hosting service allows you to focus on your business operations without worrying about the state of your server network. A third party handles all aspects of maintenance, security, and optimization while staying in contact with you to keep you updated on your options.

Pros of cloud hosting

Cloud hosting plans are adaptable to suit different business models (more on this later), here are some of the reasons why users are choosing these hosting plans over traditional ones:

Scalability

Scalability is all about how easily you can adjust your resources, like storage space and processing power, as your needs change. Whether you’re using more or less, the ability to upgrade or downgrade your plan smoothly is key.

Cloud plans can automatically scale up or down based on demand. For example, if your online store experiences a spike in traffic during holiday sales, cloud hosting ensures your website stays fast and available.

Cost-efficiency

Unlike traditional hosting plans, where you pay a monthly or yearly subscription price for the entire server type (shared, VPS, or dedicated), cloud hosting typically offers a pay-as-you-go model. In most cases, you’ll purchase a base plan, then only be charged for the exact resources used over a certain limit. 

However, it’s a good idea to regularly check your resource consumption to avoid surprises.

Reliability and redundancy

Cloud hosting networks operate across multiple data centers around the globe, each secured to protect your data. Additionally, features like fault tolerance, backup redundancy, and the flexibility of virtualization ensure your website remains up and running smoothly.

Cons of cloud hosting

Let’s take a look at some of the drawbacks you may encounter when hosting your website with a cloud hosting provider:

Security considerations

Although cloud providers manage and implement their own security measures, they may not all comply with specific industry regulations.

Limited control and customization

Depending on your plan, your business may encounter restrictions or limitations to the customizations you can make on your cloud server.  

Potential for vendor lock-in

Migrating data and applications between cloud providers can be complex and costly, potentially leading to vendor lock-in.

Use cases for cloud hosting

The infrastructure and technology behind cloud hosting make it adaptable for nearly every project you can imagine. Here are some of the most popular use cases for this style of web hosting:

Websites and online stores

If your business revolves around an online presence, minimizing downtime must be a top priority. This is where cloud hosting excels! Due to seamless resource scalability, your online store or project will remain available for visitors, even during peak traffic.

Software as a Service (SaaS) applications

SaaS refers to the cloud-distributed models of software applications. You can access these services online without installing software on your device. This is one of the reasons that analysts predict the SaaS market will reach $390.50 billion in 2025.

Cloud hosting allows businesses to scale horizontally with support for simultaneous users.

Big data analytics and media processing

Organizations dealing with large volumes of data or media can benefit from the seemingly unlimited bandwidth of cloud hosting. For example, if your site will have massive self-hosted video libraries, you’ll need the extended capabilities of cloud hosting.  

What is VPS hosting?

Virtual private server (VPS) hosting involves sectioning a physical server into several virtual servers that function independently of one another.

It’s important to note that this is not the same as the virtual machines previously mentioned in the cloud hosting section. A VPS account is virtual, but is part of a single physical server, whereas a cloud hosting account is part of a network of servers.

Hosts often market VPS hosting as the bridge between shared plans and dedicated servers, offering greater control, performance, and customization options.

Key features of VPS hosting

VPS hosting offers multiple features for businesses and individuals looking to expand. Here are some of the key factors that set virtual private servers apart:

• Dedicated resources: Each VPS container has access to a specified amount of resources (including CPU, RAM, and storage) dedicated to the account.  
• Customization options: VPS owners can install custom software, configure server rules, and manage applications to meet their particular needs.
• Security features: VPS servers offer further ways to tailor your server’s security, including secure connection options — such as root and SFTP access.
• Straightforward fees: Because you pay a fixed price monthly or yearly, your fees will remain consistent until it’s time to renew your plan, allowing for long-term budgeting.

Types of VPS hosting

When considering VPS hosting, it’s important to consider different options based on the amount of control or support you need. While VPS servers are private, unlike public or hybrid cloud hosting, there are two main types of VPS plans to choose from:

Managed VPS

With a managed VPS plan, the hosting provider oversees server maintenance, security, backups, and optimization. They may also offer access to technical support whenever needed.

This option is ideal for businesses with small IT teams or those who want to focus on their project without worrying about server management.

The level of administration and the range of add-ons can vary between hosts, so ensure you choose a plan that matches your needs.

Unmanaged VPS

An unmanaged VPS plan gives you full control over your server. You’ll receive a “blank slate,” where you can customize everything to suit your needs, similar to a bare metal dedicated server.

Keep in mind that you’ll be responsible for the setup and maintenance of your server: installing software, configuring security measures, and managing backups.

Without much (or any) support from the hosting provider, unmanaged VPS plans are often more affordable. This option works best for businesses with a dedicated IT team or those who need a highly specialized setup for their VPS.

If you’re comfortable with your team or developer managing everything, this could be the right choice for you.

Pros of VPS hosting

VPS hosting has become a popular choice for many users around the world. Here are some of the top reasons it might be the right fit for you:

Cost-effective scalability

VPS hosting strikes a balance between the affordability of shared hosting and the power of dedicated hosting. It’s a more budget-friendly way to scale your business as it grows. Plus, many hosting providers offer easy, on-demand upgrades, so you can adjust your plan when you need more resources.

Enhanced performance

VPS hosting allocates dedicated resources to each virtual server, delivering more consistent performance. This isolation from other users on the same physical server minimizes the risk of performance bottlenecks and results in reliable uptime for critical applications.

Root access and customization

VPS hosting gives you root access to your virtual server, meaning you have full control over your environment. This level of flexibility allows for in-depth customization of your server. 

Improved security

Due to its isolated environment, VPS hosting offers stronger security compared to shared hosting or public cloud instances. Additionally, with more control over your server, you can implement preferred security measures (like IP blocking, custom traffic monitoring, or firewall setup) to better protect your data and applications.

Cons of VPS hosting

While VPS hosting offers many benefits, there are a few reasons that it’s not be the ideal choice for everyone. Here are some factors to consider:

Management complexity

Businesses must handle server maintenance, security updates, and troubleshooting issues, or invest in managed VPS services, adding to operational overhead.

Resource limitations

As VPS hosting operates within the constraints of physical hardware, you may encounter resource limitations during periods of high demand.

Cost vs. performance trade-offs

As you pay for the full use of your container, consider your usage and performance to take full advantage of your VPS capacity and resources.

Use cases for VPS hosting

As covered so far, VPS servers are a cost-effective, flexible option for traditional hosting. Let’s cover some examples of businesses that can benefit from the dedicated resources, control, and scalability of VPH hosting:

Multi-website or reseller hosting

If you manage multiple websites — whether as a freelancer, agency, or organization — VPS gives you the space and tools to handle them efficiently. You can manage each site individually, adjusting access, DNS records, and resources as needed.

This also means VPS owners can monetize their projects by creating a reseller hosting business model, despite not being on a specialized reseller plan.

High-traffic environments

For websites that experience significant traffic, like ecommerce stores, blogs, or forums, a VPS provides the necessary resources. While VPS hosting doesn’t scale quite as seamlessly as cloud hosting, it still offers dedicated resources and options for expansion.

With a VPS, you can benefit from fast load times, minimal downtime, and a smooth user experience, even as traffic increases.

Web applications and development environments

Developers and businesses building web applications, APIs, or SaaS solutions often rely on VPS hosting for development, testing, staging, and production environments.

VPS hosting provides a flexible and isolated environment for deploying applications, configuring server settings, and testing new features before going live.

Enterprise applications and databases

Large enterprises and organizations running mission-critical applications, databases, or internal systems require reliable and secure hosting solutions to support their operations.

VPS hosting provides dedicated resources, enhanced security features, and high-performance infrastructure to host enterprise applications, databases, and business-critical services securely.

Comparison between cloud hosting and VPS hosting

We’ve covered a lot of information covered in this article, so let’s focus on the key differences between VPS and cloud hosting:

	Cloud Hosting	VPS Hosting
Performance	Auto-scaling resources, optimization tools, redundant backups, and guaranteed uptime.	Dedicated resources for consistent performance, scalable upgrade options, and optimization tools.
Pricing model	Fixed or pay-as-you-go models	Fixed monthly or yearly terms
Security features	Access to encryption settings, firewalls, monitoring tools, and connections to third-party security applications.	Access to security settings, custom software installation, firewall, and server rules.
Control and customization	Varies based on provider and plan.	Provides root access to your VPS for complete control and customization.

Factors to consider when choosing between cloud and VPS hosting

Before making a final decision, you may want to consider all aspects of your business, customer base, usage patterns, and overall requirements. Prioritize those aspects of your business to ensure that your hosting choice meets the most important factors in operating your company for the long run.

• Workload requirements: Consider the scalability, performance, and resource needs of your website. If scalability and performance are your top priority, cloud hosting may be the best option for you. However, if you know your application’s average usage and storage needs, a VPS at a fixed price may be more cost-effective.
• Budget constraints. Cloud hosting services billed on a pay-as-you-go basis will fluctuate, making the total monthly cost harder to predict. VPS plans, on the other hand, will require fixed monthly charges regardless of usage.
• Technical expertise: Assess your team’s skills and capacity for server management and administration. This can help you decide whether a managed VPS service provider would be more beneficial for your organization. Similarly, some business owners prefer public or managed cloud instances because there’s a layer of management by the web host. 
• Growth projections: Plan for future scalability and resource requirements based on your business growth. If this is uncertain, you may prefer the scalability and flexibility of cloud hosting, which offers more seamless pathways to accommodate growth. VPS may require additional investment and time to adequately scale.
• Compliance and regulatory considerations: Ensure compliance with industry standards and data protection regulations. These requirements may vary depending on the specific industry. Consider the security offerings of your solution to make sure your organization can comply with the necessary regulations.

Cloud hosting vs. VPS: the right decision for your business

When deciding between cloud hosting and a VPS server, it’s important to first assess the requirements of your project, website, or application. Additionally, consider factors like your monthly budget, technical expertise, and long-term growth plans.

VPS hosting provides more control and privacy, making it a strong choice for companies that want to fully customize their server environment and manage resources with greater precision. If you have a strong budget and an experienced team, this may be a solid choice. 

However, cloud hosting is a great option for businesses of all sizes, offering reliable performance and the flexibility to scale as needed, without worrying about hitting resource limits. Because of this seamless, headache-free growth potential and transparent pricing, cloud hosting is skyrocketing in popularity. For most businesses, you can’t go wrong with a cloud hosting plan from a reliable provider.

Frequently asked questions

Below are some common questions users have when choosing between cloud hosting and VPS hosting.

What is the main difference between cloud hosting and VPS hosting?

The main difference lies in the underlying infrastructure and resource allocation of the hosting services.

In a cloud network, each virtual machine has on-demand access to a pool of resources. This allows for seamless scaling and around-the-clock uptime.

On the other hand, VPS hosting involves partitioning a physical server into multiple virtual servers, each with dedicated resources. This ensures better performance and customization options compared to shared hosting plans, though it may affect website uptime if your server experiences issues.

Can both cloud and VPS hosting handle high traffic websites?

Both cloud hosting and VPS hosting can handle high-traffic websites.

Proper optimization and resource management are key to ensuring optimal performance for high-traffic websites on both hosting platforms.

The main difference is that cloud hosting may be able to seamlessly scale during high-traffic periods, while VPS hosting may require more foresight as there are physical server limitations.

What technical knowledge is required to manage a cloud-hosted versus a VPS-hosted server?

The amount of technical expertise needed for cloud or VPS hosting depends on the plan you choose. Here’s a breakdown of what to expect:

• Cloud hosting: Many cloud hosting providers offer managed services, meaning they handle server maintenance, security, and technical support. However, if you’re using a private cloud, you’ll need to manage the infrastructure yourself, which requires a higher level of technical knowledge.
• Managed VPS: With a managed VPS plan, the hosting provider takes care of general server maintenance and offers tools for server management, backups, and security. This makes it easier for businesses with limited technical resources, as the host handles most of the heavy lifting.
• Unmanaged VPS: An unmanaged VPS gives you more control but requires solid server administration skills. You’ll be responsible for tasks like software updates, security patches, and troubleshooting issues, which demands a greater level of technical knowledge.

It’s important to review your hosting provider’s support options, pricing, and how much involvement they offer in resolving technical issues to ensure it aligns with your team’s capabilities.

What kind of support can I expect from cloud vs VPS hosting providers?

Both cloud hosting and traditional hosting providers typically offer a variety of support options to users. These might include management services, 24/7 technical assistance, and informational resources such as knowledge bases and video tutorials.

What level of control do I have over my server with Cloud Hosting versus VPS Hosting?

With VPS hosting, you have full control over your server through root access. This gives you the freedom to configure your server, install custom software, and implement security measures based on your specific needs.

While cloud hosting also offers some level of customization, there may be limitations depending on your hosting provider. Hosts may restrict certain configurations and administrative tasks, but plans often come with more managed support.

Can I install custom software and applications on both Cloud Hosting and VPS Hosting?

Yes, in both cases, you can leverage the available resources and configuration options to deploy and manage custom software solutions effectively.

With VPS hosting, you have full control over the container and can install any compatible software or applications.

Similarly, cloud hosting offers flexibility in software installation and API connectivity, although some restrictions may apply.

Which option is less expensive?

Ultimately, the cheaper option depends on your specific needs. The cost of both VPS and cloud hosting can vary depending on factors like management level, add-ons, usage, and the specific plan you choose.

VPS plans typically have a fixed price, meaning you pay a set amount for the resources in your container, regardless of how much you use them. Unmanaged VPS hosting tends to be more affordable than managed plans because there are no maintenance fees from the host, and (in some cases) may even be cheaper than certain cloud hosting options.

Cloud hosting can be more cost-effective if your website doesn’t require many resources and experiences steady traffic. However, as costs can fluctuate based on your usage, you may end up paying more as your site grows or experiences traffic spikes.

Which hosting choice is better for SEO?

There are several factors that influence your SEO ranking, including website speed and uptime. Many users prefer cloud hosting for its reliability and ability to handle traffic spikes, which can help maintain fast load times and minimize downtime.

However, it’s important to note that SEO isn’t just about hosting. Even with a fast, reliable server, your rankings will be largely dependent on other factors and you should consult an experienced expert for advice. 

How many websites does each solution allow?

Both cloud and VPS hosting offer the flexibility to host multiple websites without any built-in restrictions. Since they provide virtual server environments, you can install and customize the software to fit your needs, including running several websites or projects.

That said, it’s always a good idea to check your hosting provider’s plan details to make sure there are no limitations specific to your chosen plan.