Cloud hosting may still have a futuristic mystique, but it’s a cornerstone of modern business technology. By ditching self-managed servers and hosting and turning to the cloud, businesses of all sizes have realised many fantastic benefits. Not only are cloud servers powerful and reliable, but they’re easily scalable too.

In this post, we’ll talk about what cloud hosting is, cloud hosting advantages and disadvantages, how you can use cloud hosting for your business or project, and much more.

What is cloud hosting?

Before we can dive into the benefits – just what is cloud hosting anyway?

Cloud hosting refers to the use of cloud servers for computing. Whereas traditionally, organisations would manage their own on-premises servers, cloud hosting employs a network of connected virtual and physical servers to get the job done. This makes cloud server hosting safer and more secure, as should anything happen to your server, your data can be quickly moved to another server on the network. What’s more, cloud servers are accessible from anywhere in the world, allowing businesses and their staff to enjoy serious flexibility.

There are many types of cloud hosting to keep in mind – all of which have their own unique benefits and drawbacks, depending on your business or project:

The benefits of cloud hosting

Cloud hosting has become an extremely popular data management and collaboration tool for all types of businesses, and this is all thanks to the many advantages of cloud hosting. Here are 11 of the key cloud hosting benefits to consider:

1. Reliability

The large network of interconnected servers in the cloud ensures that there is never a single point of failure. Should a server go down or fail to respond to a request, another server on the network will handle it. What’s more, if you’ve purchased more than one server from your cloud hosting provider, you can easily load balance between server environments, reducing the strain on resources and increasing performance.

2. Full root access

Some cloud hosting providers offer full root access, which means users can tailor their cloud hosting environments to their own requirements – a feature that’s useful for tech-savvy users who intend to install custom operating systems or software for their projects.

3. Increased flexibility

Thanks to the virtual nature of the cloud, you can easily and instantaneously upgrade your allocation of CPU, RAM, and SSD storage, in line with your evolving needs. Therefore, when your website or application is experiencing a spike in demand, you can simply log into your cloud hosting account and scale up your resources. The same goes in reverse if there’s a drop in demand. On top of that, you’ll be able to start, stop and pause your server at the touch of a button, and view both live usage data and estimated billing for the month ahead.

4. Scalability

The high level of control and flexibility offered by cloud servers is one of their biggest advantages. This is especially true for users whose demands may fluctuate seasonally, such as Christmas or Black Friday for eCommerce brands. Hosting your site or application on a cloud server allows you to create flexible development environments, as well as immediate boosts in performance in the event of spikes.

There are two main types of scaling when it comes to cloud computing:

Vertical Scaling

Vertical scaling refers to upgrading a system with additional resources to meet an increase in demand. This could mean increasing processing power by upgrading CPUs, improving network speed, or adding more storage and memory. Vertically scaling your cloud server hosting could even go as far as replacing your existing server entirely, or moving its workload to a more powerful machine.

Horizontal Scaling

Horizontal scaling refers to adding additional nodes or machines to meet an increase in demand, as opposed to simply upgrading the existing infrastructure. For example, if a single server is no longer powerful enough to meet your requirements, adding another server may be a good solution. Whilst this may increase the complexity of your cloud hosting, it’s often a necessary step when scaling up.

5. Cost-efficiency

Cloud hosting costs are calculated based on your usage, and billed at the end of each month. This means you’re only paying for the services and resources you’re actually using. What’s more, there’s no need for big capital expenditure on server infrastructure, or the hassle of hiring and managing staff to keep your servers up and running, as your cloud provider will handle all of that for you.

6. Increased security

Cloud servers can offer greater security than other web hosting options, for a variety of reasons:

Geo-redundancy

Traditional hosting relies on a server in a single location, which usually has to be close to you so you don’t compromise on loading speed. Cloud servers, on the other hand, store data in multiple sites in different regions, and are easily accessible via the internet from any device, anywhere.

Disaster recovery

As an additional layer of security, in the event of an issue with the server your project is currently running on, cloud server hosting allows the data to be moved or replicated into another environment quickly and easily. This is ideal for continuity of service, as well as data security.

Cyber defences

You’ll be stocked with private networks and firewalls as your first line of defence for your server against cyber attacks, and if the worst does happen, you can test and restore them with snapshots, images and clones on ISO 27001-certified data centres.

7. Increased reliability

The cloud’s multi-tier architecture allows for separate presentation, application and data layers that offer improved reliability, as well as unmetered bandwidth. So you can send as much data to your visitors as needed, without any compromises on performance – and without any extra fees!

8. Easy set-up

Provisioning a cloud server is quick and easy, and takes just a few minutes to get up and running.

9. Increased collaboration

In this day and age, many businesses have shifted to remote or hybrid working modes – resulting in many employees working off site. Cloud hosting allows access to applications and data from any location (assuming the availability of a device and stable internet connection). This is a huge plus and can also help increase productivity, as well as offer employees the flexibility to work from their preferred locations.

Cloud hosting is especially beneficial for supporting mobile teams, facilitating simultaneous access and collaboration on shared documents irrespective of employees' whereabouts.

10. It’s sustainable

Hosting on the cloud, rather than locally on physical drives (which poses its own security risks!) is the way forward for a greener world. First of all, encouraging remote collaboration is key to reducing emissions from commuting, and in addition, switching to the cloud means your business will use fewer resources trying to maintain on-site server infrastructure (which would require a lot of power and cooling). Overall, cloud hosting can be a great option if you want to improve your corporate social responsibility.

However, simply switching to the cloud doesn’t guarantee that your business is more eco-friendly. Read our guide to green cloud storage to find out how you can reduce your emissions.

11. Gain valuable insights

Without insights, your business can’t grow. Cloud servers (whether provisioned privately or through a third-party provider) can provide access to integrated analytics tools and real-time monitoring, among many other things. You can even have customisable dashboards in order to monitor the progress of KPIs and other business-relevant metrics in order to make important decisions. 

The disadvantages of cloud hosting

It’s clear that there are many advantages of cloud hosting, but this doesn’t mean that it’s the right choice for everyone. Here are some drawbacks to bear in mind if you’re looking for a new hosting solution:

1. Data security and compliance risks

Earlier, we mentioned that cloud hosting can be very secure, and while there are security benefits to the cloud (if you choose a reputable provider), there are still some data security, privacy and compliance concerns to consider. 

For example, storing your data in the cloud means entrusting it to external providers, which can raise legitimate concerns about security and compliance – especially when using public or shared infrastructure. Because data is stored off-site – potentially across multiple regions and jurisdictions – this can introduce exposure to risks such as data breaches, unauthorised access or legal complications tied to data sovereignty laws.

For industries that manage highly sensitive or regulated information (like finance or healthcare), compliance requirements might mandate physical separation or geographic control over data – something more easily managed with a dedicated server or Bare Metal solution. In these cases, public cloud infrastructure may not meet your compliance needs.

2. Limited control

Whilst managed cloud hosting reduces the burden of server maintenance, it can restrict users who need more advanced customisation options. Although some providers offer full root access for better resource control, public cloud infrastructure is still fully managed by the provider, which can limit your ability to customise the server environment or implement your preferred security measures.

3. Internet dependency

Cloud services rely entirely on internet connectivity to function. This means that any network disruptions – whether on your end or the provider’s – can impact your ability to access essential applications or data. For businesses operating in areas with unreliable internet infrastructure, this can result in costly downtime and productivity losses.

4. Vendor lock-in

Once you’ve committed to a specific cloud provider, migrating to another platform isn’t always straightforward. Proprietary systems, differing APIs and incompatible architectures can make switching hosts time-consuming and costly. This lack of portability can limit your agility and create long-term dependency on one provider’s ecosystem.

5. Unpredictable pricing

One of the cloud’s biggest selling points – pay-as-you-go pricing – can also be a drawback. Although this is great for short-term and fluctuating workloads, usage-based billing can lead to surprise costs during periods of high traffic or resource demand. Without careful monitoring, your monthly bill can quickly exceed your initial budget.

6. Performance variability

Cloud hosting typically uses virtualised resources shared across multiple users. This can occasionally lead to performance inconsistencies, especially if your provider oversubscribes their infrastructure. Applications that require consistently high performance, such as gaming servers, real-time analytics, or large-scale ecommerce sites, may experience latency or resource contention on shared platforms.

7. Technical complexity

For some businesses, especially smaller ones without in-house IT expertise, the cloud can introduce complexity rather than reduce it. Tasks like managing cloud services, scaling resources, configuring firewalls, or handling multi-cloud environments can require specialised knowledge.

Why cloud hosting? Who is it for?

Cloud hosting can be used for a variety of business models and projects, but is particularly ideal for those seeking stable website performance without the hefty cost of a dedicated server.

Its distributed infrastructure efficiently manages traffic spikes during promotions, seasonal events, or sudden popularity surges. It is particularly beneficial for websites that have fluctuating resource needs due to these traffic spikes, as business owners can simply scale resource usage as needed – and only pay for the resources that are actually required..

However, as listed in the disadvantages above, cloud hosting isn’t the right choice for every business. If issues like data compliance, internet dependency, server control, vendor lock-in, and unpredictable performance and pricing are key concerns for your business, then you may prefer the unparalleled stability, performance and control of a dedicated server. And if dedicated hosting is out of your price range, then a great alternative is VPS hosting – this will give you the dedicated resources, full root access, and predictable pricing of a dedicated server for a fraction of the cost, since you won’t need to rent an entire server by yourself.

Which type of cloud hosting should you choose?

Still interested in cloud hosting? To select the appropriate cloud hosting service for your site, it’s super important to assess your requirements and budget.

All cloud hosting types come with varying price points and associated pros and cons – but the recommended hosting configuration depends largely on your specific needs.

Consider the following when making your hosting choice – whether you choose cloud hosting or an alternative hosting solution:

1. Budget

Consider any and all financial constraints. For startups or small businesses with limited resources, investing substantial time in researching intricate managed hosting setups may prove overly expensive. Opt for a hosting plan that aligns with your website's generated revenue, as hosting prices can accommodate various website sizes and types.

2. Site traffic

Even if it’s an estimate at this point, it’s a good idea to get a little more than you need to accommodate for any surges during peak seasons.

3. Uptime requirements

100% uptime (unfortunately) doesn’t exist – this is technology, after all! But a hosting provider with 99.99% uptime is bound to give you what you need. With high uptime, you drastically lessen your chances of losing out on revenue. However, if your project or business can afford downtime for updates and the like, you may be able to get away with a budget monthly option for cloud hosting.

4. Industry regulations

Your sector may have specific requirements for keeping data as secure as possible to meet industry standards. In select industries, laws dictate specific requirements for hosting and data storage setups. Factors such as server location and redundancy levels might be stipulated to ensure uninterrupted service.

5. Compatibility with your current CMS

Assess compatibility with your chosen content management system (CMS), such as WordPress or similar. Different CMS platforms have distinct server requirements – this is particularly important if you wish to migrate your CMS over to cloud hosting from another hosting solution.

Is cloud hosting faster than VPS hosting?

When it comes to cloud hosting vs VPS (virtual private servers), the main difference between the cloud and VPS hosting is the cloud’s ability to deal with growing needs much faster. Cloud hosting is more equipped to handle projects with significantly fluctuating resources, whereas VPS hosting may be better for you if you want more stability and consistent resource levels (whilst still having the opportunity to upgrade your server or scale up your resources if needed). Ultimately, deciding between a VPS and cloud hosting hinges on your preferences, budget, and project requirements.

Don’t know which type of server is right for you? Fasthosts is here to help! Get in touch with our sales team at any time for help finding the right solution for your project. You can also check out our helpful blog for more information about all things web hosting!