Definition: Cloud servers utilize multiple servers connected together in a cluster which is backed by SAN storage. Customers utilizing a cloud platform will benefit from the multiple servers because they will receive unlimited storage, maximum bandwidth, managed load balancing and no ties to a specific piece of hardware. The basic difference between public and private clouds are in public, the cluster is multi-tenant and a private is a single client.
I've observed or been a part of buying decisions for a few thousand server customers, from small-business owners getting a website online for the first time to established platforms with tens of millions of visits every day. While each of those purchasers had different requirements and priorities for a cloud server, a few key deciding factors were consistent across those decisions:
Overall, VPS hosting will be less efficient and limited in its level of resources available to your site. However, it’s a great fit for people who simply want to launch a website and have outgrown the limits of their shared hosting environment. A VPS is powerful and does offer improved performance, however the chances of your site going offline, or running into a resource issue is higher with VPS hosting, than cloud hosting.
Cloud server hosting is when hosting services are made available to customers on demand via the Internet. Rather than being provided by a single server or virtual server, cloud server hosting services are provided by multiple connected servers that comprise a cloud. Cloud server hosting is also sometimes referred to as cluster server hosting or server on-demand hosting.