Cloud Server vs. VPS Hosting - what are the similarities and differences?

When it comes to the differences between Cloud Server and Virtual Private Server or VPS hosting, doubts and uncertainties often arise. A Dedicated Server can be easily distinguished from these two, as it is always based on its own physical hardware, while both Cloud Servers and VPS hosting utilise virtualisation. However, they operate on completely different IT infrastructures, on which the respective Own or Managed Server operates. This differing approach also leads to them having different and distinctive characteristics that may favour one model over the other depending on usage.

How does server virtualisation work?

There are significant differences in server virtualisation. In Full Virtualisation, a powerful computing core simulates a complete autonomous hardware where an independent operating system can be installed by the host. A more efficient method is Container Virtualisation - here, the kernel of an operating system emulates various environments where systems are isolated from each other in multiple instances but share a kernel. Both methods are used for both Cloud Servers and VPS hosting to provide users with Root Access to their own environment.

What is a VPS hosting?

With the increase in computing power through modern hardware, it became possible since the turn of the millennium to virtualise operating systems within a server suitable for hosting custom applications or IT environments. In this setup, a single dedicated server manages a larger number of VPS hosting and allocates its resources according to fixed specifications and current usage. Assigned processor cores are also referred to as vCores. As not all instances fully utilise their theoretically maximum available capacities, this allows for a load distribution that significantly improves the hardware performance in the long run.

This concept enables offering VPS hosting relatively cheaply. While a dedicated server requires high investments and is exclusively available to a single customer, dozens of VPS hosting can be operated in parallel on a powerful machine, allowing the acquisition and operating costs to be distributed among multiple users. Their features include:

• Own operating system with full access to software and configurations
• Resources are collectively shared by all VPS hosting
• Cost-effective with high performance
• Available as unmanaged or managed server
• Free usage according to the provider's terms and conditions
• High scalability in performance
• Excellent security isolation of all instances from each other

In web hosting, VPS hosting has played an important role since the mid-2000s, as they offer very flexible solutions for various tasks at a low price. They combine the advantages of a dedicated server with the low costs of professional web hosting.

What is a Cloud Server?

The Cloud Server is in a way an evolution of traditional VPS hosting. Like the latter, it uses virtualization to provide the user with their own controlled operating system as an IT environment. However, a Cloud Server does not use a single dedicated server as infrastructure, but a pool or network of numerous different, independent computers. These are connected to form a computing network - the Cloud - and managed collectively rather than individually.

Virtualization in a Cloud Server is not based on fixed hardware, but on the basis of collective computing power of distributed units. This offers several advantages - for example, specialisation of parts of the pool for tasks such as databases, storage systems, or computing power is possible to enhance efficiency and performance. Additionally, Cloud Servers are highly reliable due to their abstraction from hardware. They exhibit characteristics such as:

• Very high and scalable performance
• Low risk of failures due to hardware damage
• Flexible billing based on resource consumption
• Continuous computing power through load distribution in the server pool
• Access to an individual, virtualised operating system
• Real-time resource expansion possible
• Low costs due to high efficiency
• Possibility of distribution across different locations

For the provider, cloud servers mean higher demands on administration, but at the same time offer significant advantages in efficiency, maintenance, and performance. This is why major corporations such as Microsoft, Amazon, or Google practically exclusively rely on cloud servers for their products.

What are the differences between cloud servers and VPS hosting?

Although they are similar in technology, there are significant differences between cloud servers and VPS hosting. Cloud servers can be almost infinitely scaled in performance through automated processes, often resulting in billing based on actual resource usage and runtime. In contrast, VPS hosting uses price packages that include a fixed minimum performance and only allow exceedances for short periods under certain conditions and with sufficient free resources. This makes billing more transparent and easier to calculate. They are also considered safer as there is no additional abstraction layer beyond virtualisation that could compromise security through misconfiguration or programming errors. For users, VPS hosting and cloud servers offer identical operating systems and configuration options - whether they are self-managed or Managed Servers.

Also, explore a comparison of other web hosting products:

Dedicated Server vs. Managed Server
Web Hosting vs. Dedicated Server
Web Hosting vs. VPS Hosting
Dedicated Server vs. VPS Hosting

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