7 Reasons Why Cloud Hosting Service Works Better Than On-Premise Data Centres

By now, you’ve probably heard of the word “cloud” mentioned over the Internet. 

While the cloud can mean many things, including file sharing, data storage, etc. Cloud hosting is a setup where computing resources — like storage, processing power or extra bandwidth — are outsourced to a third-party provider (or a ‘cloud hosting provider’).

There are many reasons why organisations are now shifting to the cloud. We’ll explore some of its benefits in a while. But first, let’s uncover how it works and how it compares to traditional web hosting.

How Does Cloud Hosting Work?

Traditional hosting setups involve a centralised system where websites and its data get stored on a single server.  As a client, you can either rent out space on a shared server (shared hosting or VPS) or allocate an entire server, and its resources, exclusively for yourself (dedicated servers).

Cloud hosting is the exact opposite. It functions through a decentralised technique called virtualization. 

Virtualization uses a management software called a hypervisor to split physical servers into a network of “cloud servers”, resulting in high availability and better traffic load balancing. So when you experience a spike in traffic or server failure, a cloud hosting infrastructure spreads the load across its network so your website keeps running.

There are different types of cloud deployment models, namely: private cloud, public cloud, and hybrid cloud. The type you choose depends on your business needs:

  • Public cloud is a cloud type that typically operates off-premise. Some of the largest public cloud providers in the world include Amazon Web Services (AWS), IBM Cloud, and Microsoft Azure. 


  • Private clouds, as the name implies, are solely dedicated to an end user or organisation. The setup can either be on an on-premise IT infrastructure owned by the user OR a vendor-owned data centre located off-premise.


  • Hybrid cloud can be a combination of a private and public cloud, two or more private clouds, two or more public clouds, or a virtual/bare-metal environment connected to one public or private cloud. This setup has become increasingly popular because it offers more security and flexibility compared to other cloud types.


In addition to cloud types, there are different cloud hosting services to take note of: IaaS, PaaS, and SaaS. These services facilitate how user data flows from the client through the internet and towards the cloud service provider’s system and vice versa. 

In an IaaS (infrastructure as a service) setup, users receive the virtualized hardware resources as on-demand services. With PaaS (platform as a service), businesses and developers get an integrated solution from a third-party provider. PaaS is often used by developers building applications or software.

SaaS, or software as a service, is a cloud service type where end users get applications delivered over the Internet. It removes the need to install and maintain software or hardware. 

What are the Benefits of Using a Cloud Hosting Service

1. Scalability 

Businesses should always have their eyes set on growth. However, growing a business can be a tricky and unpredictable road to navigate. 

One of the reasons businesses turn to cloud hosting is because of how easy it is to scale. Most cloud hosting providers automatically allocate resources as needed. Let’s say you’re expecting high traffic for your upcoming holiday sale. Your provider can instantly deploy additional storage, bandwidth, RAM, etc. 

2. Increased Server Uptime

A website’s bread and butter is its availability. Downtime can weigh heavily on businesses, with the average downtime costing as much as $5,600 (S$7,572) per minute. 

Unlike traditional hosting, where downtime or failure on a single server result in extended downtime, cloud hosting runs on a network of servers. So, if a server goes down, another server from the cluster takes over and ensures your website or application is running smoothly.

3. Better Security

Some businesses worry about security when running operations in the cloud.

On the contrary, you’ll find that cloud hosting is one of the most secure hosting options out there. With traditional hosting — particularly shared hosting — multiple users share resources and CPU capacity. You can opt for a dedicated server, but this option can be costly for small businesses. 

The best cloud hosting providers ensure that their hardware and software meet security standards like PCI, DSS, and HIPAA. So you’re more than assured that your platform is capable of processing payments or confidential records.

A cloud hosting platform also comes with an established infrastructure. Your data, network, and even physical server security are taken care of by your provider. 

4. Backup and Disaster Recovery

No matter how secure and robust your infrastructure is, all organisations are susceptible to crises completely out of your control. Of course, any crisis has a ripple effect on your business. It can result in lost revenue, productivity, and a stained brand reputation.

With a cloud hosting setup, your files are automatically backed up, providing you with a fast and easy disaster recovery solution.

5. Access critical services anytime, anywhere

Businesses don’t just employ cloud hosting services for public-facing websites. Another use of cloud hosting is for data provisioning. For example, businesses with multiple stores around the world can host their sales software in the cloud. Employees stationed at the different facilities can instantly save files to a remote database so headquarters can retrieve the data on demand. 

6. Cloud hosting is a cost-efficient option

For most companies, investing in the cloud is a more cost-effective option for many reasons, including:

  • Reduced labour costs. Instead of hiring an internal IT team, you can outsource infrastructure management to an external provider.


  • Removes the cost of maintaining an on-premise server. While on-premise servers offer end users a mass amount of power, it typically ends up underused. Your business pays for your resources in real time, no matter how much is actually being used.

    Cloud hosting, on the other hand, provides resources on demand. Thus, allowing you to pay only for the resources you actually need.


  • Cloud providers proactively monitor, maintain, and upgrade your infrastructure. Not only does this reduce the costs of having internal staff do this for you, but you also get less downtime and increased productivity.


7. Environment-friendly

While often an overlooked aspect of running a business, it’s nonetheless important to do your part in reducing your carbon footprint.

A cloud hosting service notably completes similar tasks as a traditional hosting setup but with a lower carbon footprint. AWS, one of the world’s biggest cloud service providers, runs its cloud computing resources at an 88% lower carbon footprint compared to traditional counterparts. Microsoft, on the other hand, states that their cloud service is 93% more energy-efficient than an on-premise data centre.

Partner with the Best Cloud Hosting Provider for Your Business

Based on the list above, you’ll find that cloud hosting provides numerous benefits for your business. Whether you’re running a community site, social networking, or eCommerce store, you’ll be able to grow your business in a cloud hosting environment in no time. 

Trends also show that cloud technology is the future. So sooner or later, you will eventually need to move your business to the cloud. 

If you’re ready to get started on your journey to the cloud, get a partner that ensures long-term success. At CLDY, our cloud hosting packages give you the ability to scale your resources, full root access, and host your websites and apps in a secure and customisable architecture.

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