Processors in dedicated servers are entirely devoted to the host website or application. Unless all of the processing power is used at once (which is highly unlikely), they do not need to queue requests. This makes dedicated servers an excellent choice for companies with CPU intensive load balancing functions. In a cloud environment, processor cores require management to keep performance from degrading. The current generation of hypervisors cannot manage requests without an added level of latency.
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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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