HostAdvice Research – Why Cloud Hosting Is Better Than Traditional Web Hosting?

10 minutes reading

Web hosting is an integral part of the digital world we live in today. And just like all other fields in technology, web hosting has been expanding and improving constantly over the years. According to Allied Market Research, in 2019, the web hosting market was valued at $57.46 billion, and it is projected to reach a value of $183.05 billion by 2027. Moreover, the web hosting market will grow at a CAGR of 15.2% from 2020 to 2027.

The majority of users of web hosting services are enterprises, with the number of individual users projected to grow significantly from 2019 to 2027.

Source: Allied Market Research

So, judging by its exponential growth, it’s no wonder that the number of web hosting providers has grown to over 330 000 individual companies.

Aside from its exponential growth, new technologies have been introduced to the web hosting world. Today, we’re going to focus on one such technology – cloud hosting, compare it to traditional web hosting, see what the differences are, and discuss why cloud hosting is the better option.

So, let’s begin.

What is Traditional Web Hosting?

Traditional web hosting means that your application or website is hosted on one physical server. Each user rents space on a physical server where their data and files are stored. The two main types of traditional hosting are dedicated and shared hosting.

With traditional dedicated hosting, users get a whole server to themselves and do not share resources with others. However, dedicated hosting is quite expensive, and not everyone can afford it. However, users have complete control of their resources.

With traditional shared hosting, users get resources from a single server and share those resources with other users that use the same server. It’s the cheapest option available, doesn’t require too much maintenance, and the servers’ management and maintenance are in the providers’ hands. However, traditional shared hosting is quite limiting because users get a fixed amount of resources and cannot scale their websites and change the number of resources they use on-demand.

According to WebTribunal, shared hosting has a CAGR of 10.3%, while dedicated hosting has a CAGR of 5.6%.

Pros and Cons of Traditional Web Hosting

Shared hosting prices

Traditional shared hosting is the most affordable hosting type currently available

Dedicated hosting prices

Dedicated hosting plans are the most expensive plans currently available

Wide-range of hosting options

With traditional web hosting, you can choose from a variety of plans, including shared hosting plans, dedicated hosting plans, VPS hosting plans, WordPress hosting plans, etc.

Resources are fixed

With the majority of traditional hosting plans, users have limited resources that depend on the plan they buy, and those resources cannot be increased or decreased on-demand

More control

With traditional dedicated hosting and VPS hosting plans, users get more control over the servers

Higher risk of downtime

With traditional shared hosting plans, the risk of downtime is significant because if another site on the same server is hacked or infected with malware, then your site could be taken offline as a consequence


The main drawback of traditional web hosting is that ‘you put all your eggs in one basket.’ You are relying on a single server. So, what happens when that single piece of hardware fails? Worse yet, what if a cybercriminal enters the environment? What if other websites exceed their usage limits consuming a higher percentage of the fixed resources? You suffer; your website speeds and performance slow down, your security and user data are on the line, and you experience downtime.

What is Cloud Hosting?

Cloud hosting deploys applications and websites via cloud resources. It uses a network of connected virtual and physical cloud servers to host applications and websites, increasing flexibility and scalability. All types of hosting, including shared hosting, reseller hosting, VPS hosting, etc., can be deployed using cloud solutions.

With cloud hosting, the providers take care of the setup, infrastructure, security, maintenance, etc. All resources are available online via an Internet connection. This means that customers do not need to have on-premise physical servers and do not need to manage and operate their own data centers because all the resources come from the provider.

Cloud hosting services are delivered on-demand, and users only pay for the resources they use, meaning they only purchase as many resources as necessary. Cloud hosting uses virtualization to split a physical server into multiple virtual machines or VMs, i.e., cloud servers that are used to host one website.

A cloud solution can be deployed using one of the five different deployment models:

  • Public cloud
  • Private cloud
  • Hybrid cloud
  • Community cloud
  • Multi-cloud

According to Statista, around 49% of users intend to switch to a hybrid cloud model in three to five years. Also, the use of traditional data centers is set to decrease from 18% in 2020 to 2% in 2025.

Additionally, private cloud usage is expected to decrease from 22% in 2020 to 7% in 2025. So, hybrid clouds are set to be the most popular deployment method among users by 2025.

Source: Statista

Cloud hosting services are increasing in overall popularity in European countries as well. As a whole, the use of cloud services in Europe has risen from 36% in 2020 to 41% of enterprises, according to Eurostat. The most significant usage increases for cloud hosting services are in the Netherlands, where it rose from 53% in 2020 to 65% in 2021, the Czech Republic from 29% in 2020 to 44% in 2021, Slovakia from 26% in 2020 to 36% in 2021, Cyprus from 35% in 2020 to 50% in 2021, and Serbia from 19% in 2020 to 29% in 2021.

Source: Eurostat

Pros and Cons of Cloud Hosting

Reduced costs

With cloud hosting, you don’t have to buy hardware and software, operate and maintain on-premise servers and data centers, don’t need to hire IT experts, etc.

Issues with bandwidth

Because cloud hosting is delivered via the Internet, users need a fast and stable connection at all times to have access to resources, which is not the case for all users

Enhanced scalability

Cloud hosting delivers as many resources to users as they need on-demand, so if you want to increase or decrease the number of resources you use, you can do it whenever you want to

Less control

Users have limited control other their infrastructure because the hosting providers are the ones that own the resources and servers

Better and faster performance

Cloud hosting services run on a network of multiple servers and data centers, which use the latest hardware and software that is constantly updated. This reduced latency and makes performance better

Privacy issues

Because users share resources with cloud hosting, it makes them vulnerable to attacks, and security issues can arise, especially if the user does not have the appropriate technical knowledge to prevent this

Easy to set up

The provider takes care of virtually all backend features and manages the setup of cloud servers, so enterprises and individuals do not need to do anything themselves regarding the setup

Technical difficulties

If providers experience any technical difficulties like downtime, power outages, etc., it affects all the websites and applications that they are hosting

(hint: that’s why you need to choose a reputable company for hosting your data)

Automatic Backups

Cloud hosting provides automatic backups so that the loss of data is highly unlikely

Better Productivity

Because users do not have to manage or maintain servers and data centers, they can focus more on other goals and their businesses in general

Cloud Hosting vs. Traditional Web Hosting

Resource Allocation

  • Cloud Hosting – websites use resources from multiple servers, so if one server is down, websites continue working because they get resources from another server. Also, cloud hosting covers traffic spikes efficiently and easily
  • Traditional Web Hosting – even though there are multiple options with traditional web hosting, all of them host websites on one server, so resource allocation is not as flexible. Also, in most cases, you get a fixed number of resources depending on the plan you purchase, which means you cannot change the number of resources you need on-demand (if you do, you are likely to pay pesky overage fees)


  • Cloud Hosting – in most cases, performance is fast and stable due to the network of servers that providers use to deploy resources
  • Traditional Web Hosting – performance depends on the hosting plan you choose and where the server you use is located

Website Traffic

  • Cloud Hosting – the server infrastructure for cloud hosting is perfect for handling big spikes or any fluctuations in traffic
  • Traditional Web Hosting – most traditional web hosting plans come with fixed traffic limits, making them unable to handle traffic spikes, which can cause your site to be unavailable for a long time. Of course, you can buy a traditional dedicated hosting plan to prevent this, but those are quite expensive, as mentioned above


  • Cloud Hosting – as mentioned, users have limited control over the servers and backend because the providers are responsible for virtually all technical aspects of the website. Still, reputable cloud hosting providers grant users a bigger say in their website operation, usually through root access or a beginner-friendly user interface, such as the popular cPanel control panel.
  • Traditional Web Hosting – some types of traditional web hosting offers more control to users, like VPS and dedicated hosting, but most of them limit the control users have over their websites


  • Cloud Hosting – websites can easily and quickly decrease or increase the number of resources they use on-demand to accommodate traffic spikes or drops and to satisfy any other needs they might have
  • Traditional Web Hosting – scalability is a bit challenging with traditional hosting plans and needs to be planned in advance because most of them come with fixed amounts of resources that cannot be changed on-demand

Technical Expertise

  • Cloud Hosting – the setup is done and overseen by the provider, so users do not need to be tech-savvy to start using cloud hosting. However, some technical knowledge is needed if you want to customize it
  • Traditional Web Hosting – while shared hosting is perfect for new users that are not tech-savvy, other options like VPS and dedicated hosting require significant knowledge and expertise

Cloud Hosting vs. Traditional Web Hosting: Key Differences

Cloud HostingTraditional Web Hosting
Uses a network of multiple servers to host websites and applicationsUses one physical server to host websites and applications
Users pay only for the resources they useUsers pay for a fixed number of resources
Users do not have to purchase hardwareUsers have to purchase hardware in most cases
The data is stored on multiple serversThe data is usually stored on one server

Is Cloud Hosting Better and Why?

Cloud hosting is better than traditional hosting because it supports dynamic growth and doesn’t limit users regarding resources. Also, it has a more efficient pricing system because users pay only for the resources they use.

Additionally, cloud hosting’s scalability is unmatched because users can increase and decrease the number of resources they need when they need them. Moreover, users do not have to manually remove or add server space like they do with traditional web hosting.

Cloud hosting works for anyone anywhere, and it isn’t dependent on location. Users can access cloud hosting services globally, on any device, both PC and mobile. On the other hand, location plays a significant role in traditional web hosting, and you need to be careful when choosing a server location because the further away the server is, the slower the loading speed of your website will be. Well, that’s until you have a Cloudflare CDN included in your plan.

So, if you have a growing or large business that needs flexibility, scalability, global access, and high loading speeds and uptime, cloud hosting is the perfect choice for you.

When to Choose Cloud Hosting

  • If your business is experiencing traffic spikes or traffic is increasing in general, then you should switch to cloud hosting because it is built to handle any amount of traffic, and you won’t experience downtime
  • If you have a site that experiences constant fluctuations and you are looking for more flexibility and scalability, go with cloud hosting
  • If you experience a lot of power outages and slower speeds with your current plan, then you should upgrade to cloud hosting to prevent this from happening
  • If you don’t know exactly how many resources you need and want to be able to change the number as you go, the right solution for you is cloud hosting


As we have seen from the data provided in this article, it is no secret that cloud hosting is on its way to becoming the future of web hosting. The number of enterprises and individuals that switch to cloud hosting continues to grow year in and year out, and that is not likely to change in the near future.

Cloud hosting works for everyone, from smaller businesses to anyone who can afford to spend a bit more than for traditional shared hosting but significantly less than for traditional dedicated hosting.

So, if you and your business need an affordable, highly flexible, easily scalable, fast, and reliable web hosting solution, you should definitely go for cloud hosting!