The biggest decision is whether to have a cloud-based or in-house server infrastructure. While it may sound like a black-or-white selection, there are many things to consider. The first factor is how important uptime is to your business. Cloud solutions are usually more expensive than in-house, but the benefits of being in the cloud can far outweigh the costs for some businesses. For example, an online business that is reliant on web-based transactions will consider uptime an extremely important factor; therefore, they will likely be willing to pay more for a cloud-based solution that can guarantee a certain level of uptime. Other businesses not as dependent on uptime may be more suited to an in-house set up.
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As a leader in Managed Services for public cloud infrastructure, here at Rackspace we deliver unbiased guidance on best-fit cloud solutions to organizations around the globe. We go beyond simple migration assistance and infrastructure management with multi-cloud managed services, professional services and managed application services to enable true digital transformation.

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With cloud hosting, the load is balanced across a cluster of multiple servers. The information and applications contained on those servers are mirrored across the whole cluster, meaning that if an individual server goes down, there is no lost information or downtime. Because of this redundancy, cloud hosting is much more elastic and resilient. Problems with one website or application are unlikely to affect your bandwidth or performance.
Some of the best VPS hosts, like the one below, power their plans with cloud networks to take advantage of server clusters boasting high levels of redundancy and availability. The optimized architecture streamlines operations for the hosting provider, who in turn can choose to pass the savings onto customers. Take a look at our recommendation for affordable cloud-powered VPS:
One of the main benefits of using cloud hosting services is flexible and more cost-efficient scalability in building applications, websites and other services. Because users can scale as needed, they are charged only for the services they use and do not pay for any unused capacity. This payment system makes cloud hosting a relatively inexpensive method of storage.
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Our VPS Hosting plans all come with a high availability feature that essentially takes your VPS container, and empowers it with a cloud infrastructure. How does this work? We put a premium on your server's uptime, so we created an infrastructure of redundant hardware clusters that provides your partition with real-time redundancy. If for some reason there is an error on your server, there is another server in the cluster with that backup information ready to spin up. We utilize Virtuozzo, a virtualization solution built on top of OpenVZ.
With many other VPS plans, they cut off and limit your resource usage. Our Cloud VPS plans are different in the sense that they offer Burstable RAM limits. You will have a dedicated amount of RAM during low traffic periods (1.5GB for Cloud VPS-1000, 3GB for Cloud VPS-2000 and 6GB for Cloud VPS-3000), but are able to use a higher amount during high traffic surges and spikes.

Cloud hosting is an alternative to hosting websites on single servers (either dedicated or shared servers) and can be considered as an extension of the concept of clustered hosting where websites are hosted on multiple servers. With cloud hosting, however, the network of servers that are used is vast and often pulled from different data centres in different locations.
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