Comparison of VPS and cloud hosting with a stylized cloud, a server, and a website interface, illustrating flexible and secure web hosting solutions.

VPS vs. Cloud Hosting: Key Differences, Pros & Cons Explained

When choosing a hosting solution for your website, two popular options stand out: VPS (Virtual Private Server) hosting and cloud hosting. 

At first glance, they may seem similar, since both give you a set of allocated resources (CPU, RAM, and storage). However, there are important distinctions you should consider before choosing a plan for your website. 

In this article, we’ll explore their differences, benefits, and drawbacks to help you decide which is the right choice for your project.


VPS vs. Cloud Hosting

The main difference is the method of virtualization and the utilization of the available system resources. This makes cloud hosting more scalable, flexible, and reliable, while VPS hosting is better suited for stable, smaller websites.

  • VPS Hosting: Offers dedicated resources on a single server, providing stable performance but limited scalability compared to Cloud. Best for sites with predictable traffic.
  • Cloud Hosting: Uses a network of servers to provide scalable, highly reliable performance with real-time resource adjustments. Ideal for growing businesses or websites with fluctuating traffic.

1. What is VPS Hosting?

VPS hosting uses virtualization technology to divide a single physical server into multiple smaller “virtual” servers. Each virtual server operates independently, with its own allocated resources like CPU, RAM, and storage. 

While shared hosting users share the total amount of a single server’s resources, VPS users benefit from dedicated portions of these resources.

An infographic showing how VPS technology works, illustrating how a hypervisor divides resources across multiple virtual machines.

1.1. Pros of VPS Hosting

There are certain advantages of VPS hosting, especially compared to shared or dedicated hosting servers: 

  • Cost-effective: VPS hosting is generally more affordable than having a dedicated server.
  • Root access: Many VPS plans offer root access, giving you the ability to install and configure software as needed.
  • Customization: With a VPS, you can choose your operating system and customize server settings.

1.2. Cons of VPS Hosting

  • Scalability: While VPS can handle more traffic compared to shared hosting, resources are tied to a single physical server, so scaling up may require moving to a new VPS plan or physical machine. 
  • Technical expertise required: Using a VPS involves knowledge of server management and troubleshooting.
  • Downtime risks: If the physical server hosting your VPS has issues, it can affect all virtual servers on it.

1.3. When to Choose VPS Hosting

  • Predictable traffic: For websites with steady traffic patterns, VPS hosting provides sufficient resources.
  • Technical expertise: If you’re comfortable managing servers, VPS gives you more control over configurations.

While a VPS server is ideal for tech-savvy users, most website owners prefer a managed shared hosting plan. It provides all the essential features without the hassle of configurations or the need for technical expertise. This allows them to focus entirely on what really matters: running their business.


2. What is Cloud Hosting?

Cloud hosting services leverage a network of interconnected servers to host your website. Instead of relying on a single server, your data is distributed across multiple servers in a “cloud.” This means if one cloud server fails, others pick up the slack.

This allows cloud hosting providers to offer a high uptime guarantee and significantly higher redundancy rates compared to other types of hosting. 

An infographic showing how cloud hosting works, illustrating how website resources are pooled from a network of multiple servers.

2.1. Pros of Cloud Hosting

  • Scalability: You can scale resources like CPU and RAM up or down instantly based on demand.
  • Reliability: With data spread across multiple servers, there’s no single point of failure. If one server goes down, others keep your site running.
  • Global reach: Cloud hosting often includes content delivery networks (CDNs), which help with faster load times worldwide.

2.2. Cons of Cloud Hosting

  • Learning curve: Understanding how to manage resources and costs in a cloud environment can take time.
  • Potentially higher costs: For small, static websites, cloud hosting is more expensive compared to shared hosting.

2.3. When to Choose Cloud Hosting

Cloud hosting is the next step if your project is growing and you need more resources to handle increasing traffic. For most website owners, a managed cloud hosting plan is the best choice for expanding one’s business!

  • Growing businesses: Cloud hosting is perfect for scaling quickly without downtime.
  • Unpredictable traffic: If your site experiences traffic spikes, cloud hosting adjusts resources in real time.
  • Global reach: Businesses targeting international audiences benefit from the speed and reach of cloud hosting.
  • Critical uptime needs: For ecommerce or SaaS platforms, where downtime equals lost revenue, cloud hosting offers unmatched reliability.

Our Cloud Hosting services are fully managed and come with built-in speed and security features, auto-scaling, and an uptime guarantee of 99.99%!

Illustration showing scalable cloud hosting with interconnected cloud, firewall, and a laptop, highlighting managed and auto-scalable cloud solutions for business growth.

Differences Between VPS and Cloud Hosting

Comparison Chart: VPS vs. Cloud Hosting

Feature VPS Hosting Cloud Hosting 👑
Performance Stable performance due to dedicated resources but dependent on a single server. Performance dips if the server is overloaded or encounters issues. Distributed infrastructure results in high performance. Traffic spikes and hardware issues are mitigated with multiple servers supporting your site.
Scalability Limited by the physical server. Scaling requires migrating to a larger plan, which can lead to downtime. Real-time scalability with instant resource adjustments. Ideal for handling unpredictable or seasonal traffic.
Pricing Fixed monthly pricing based on allocated resources.  Pay-as-you-go model based on usage. Fixed but flexible prices for managed cloud hosting due to seamless upgrades/downgrade options.
Flexibility Allows some customization but is constrained by physical server limits. Ultimate flexibility with dynamic resource adjustments, wide application support, and seamless third-party integrations.
Reliability Dependent on the physical server. Downtime occurs if the server fails unless backups and redundancy are in place. Highly reliable with data redundancy across multiple servers. Automated failover ensures minimal disruption during hardware issues.
Security Strong isolation between users. Additional security depends heavily on the host’s infrastructure and user management. Enterprise-grade security with features like firewalls, encryption, and DDoS protection. Compliance with industry standards offers additional assurance.
  1. Performance

VPS hosting provides stable performance, as resources are allocated specifically to your server. However, performance can dip if the physical server is overloaded or faces technical issues.

Cloud hosting outshines VPS in performance, thanks to its distributed architecture. With multiple servers supporting your site, traffic spikes and hardware issues don’t slow you down.

  1. Scalability

VPS hosting has fixed resource limits tied to a single server. To scale up, you often need to migrate to a larger VPS plan.

Cloud hosting offers unparalleled scalability. Resources can be added or removed in real time, making it ideal for businesses with unpredictable or seasonal traffic.

  1. Pricing

VPS hosting typically involves fixed monthly pricing based on the allocated resources. It’s predictable but can result in paying for unused capacity.

Cloud hosting operates on a usage-based pricing model. This flexibility can save costs, especially for sites with variable traffic.

  1. Flexibility

VPS hosting provides some flexibility, allowing you to customize the server environment. However, it’s limited by the hardware it resides on.

Cloud hosting offers ultimate flexibility. You can configure scaling, deploy apps, and integrate third-party tools without any concern for resource limitation.

  1. Reliability

VPS hosting can experience downtime if the physical server fails. Backups and redundancy depend on your hosting provider. 

Cloud hosting is inherently reliable. Data redundancy across servers makes sure your site remains live, even during hardware issues. 

  1. Security

Both VPS and cloud hosting provide robust security. However, VPS hosting depends heavily on the host’s measures, while cloud hosting inherently includes additional layers like firewalls, data encryption, and DDoS protection.

Final Verdict on Cloud Hosting vs. VPS

As shown above, cloud hosting beats VPS hosting in all categories

A comparison table showing the differences between VPS and Cloud hosting when it comes to performance, scalability, and security.

While VPS hosting still meets the needs of many users, cloud hosting is the future of web hosting. 

Its scalability, performance, and reliability make it the preferred choice for growing websites. Are you ready to elevate your online presence? Explore SiteGround’s premium cloud hosting solutions and experience the difference!

Cloud hosting concept with a cloud, firewall, and laptop interconnected, alongside a 'Get Started' call-to-action promoting a hosting provider's money-back guarantee.


FAQs

Which Is Better, VPS or cloud?

Cloud hosting generally outperforms VPS hosting in scalability, reliability, and flexibility. It’s ideal for dynamic websites and growing businesses. VPS hosting is a great choice for small, stable sites with fixed budgets and tech-savvy owners.

Is Cloud Hosting Better for SEO?

Yes, cloud hosting can boost SEO. Fast load times, reliable uptime, and global server locations mean a better user experience, which Google rewards with higher rankings.

Can I Use Both VPS and Cloud Hosting?

While uncommon, some businesses use VPS for basic needs and cloud hosting for critical or high-traffic applications. However, cloud hosting often eliminates the need for VPS altogether.


Aleksandar Kolev

Technical Content Writer

Aleksandar has been with SiteGround since 2019, always striving to bring both a keen analytical mindset and a creative touch to his work. As a technical content writer, he is dedicated to making complex topics accessible and engaging. Outside of work, Aleksandar enjoys a minimalist, nature-focused lifestyle and has a passion for music and performing. His ongoing interest in yoga, Tai-Chi, and meditation adds to his balanced approach to both life and work.

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