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Cloud Server vs Dedicated Server: Which is Best for Small Businesses?

Whether small or large, every business has at least had this discussion - whether to choose a dedicated server or a cloud server.

Both dedicated and cloud servers offer unique advantages, but how do you decide which suits your business?


First, your business requirements will help you determine which server is best for you. If you're unsure, this article will help you understand the features and differences between the two servers and how they affect your business performance. We will also look at cloud repatriation – what it means and some recent examples of it..

 

All About Cloud Servers vs Dedicated Servers

Let's compare both servers based on their features and advantages.


What is a Dedicated Server?

A dedicated server is a physical server that belongs exclusively to one business and does not share its resources with other businesses.

A dedicated server is hosted on the business premises or in a data center. Due to its exclusivity, it is expensive to set up and maintain.

Pros of Dedicated Servers

  • Improved Security: This server's exclusivity ensures enhanced security of business data, which is ideal for businesses that need top-notch security because they handle sensitive data and customer information.
  • Enhanced Performance: Dedicated servers offer stable performance, even when traffic and site visits are at their highest.
  • Reliable: All the resources are available to one business, removing all risks of contending with other users for resources.
  • Ease of Customization: Businesses can customize configurations, hardware, and software as they deem fit


What is a Cloud Server?

A cloud server is a virtual server hosted by a cloud service provider and shared between and among different businesses. The resources of a cloud server, including its storage, networking, and computing power, are shared across multiple servers. They are made accessible over the internet, and businesses pay for this server on a pay-as-you-go model.


Pros of Cloud Servers

  • Quick Provisioning: Cloud servers can be provisioned quickly; hence, businesses can meet high demands immediately.
  • Flexibility: Cloud servers are easy to set up and quick to change in line with new demands and evolving business atmospheres, which is common with startups.
  • Recovery: Cloud servers aren't as susceptible to hardware damage because their architecture is distributed and uploaded to the cloud, ensuring easy recovery.

 

Comparing Features of Cloud and Dedicated Servers

Security

In terms of security, Dedicated Servers provide more security and control, which makes it perfect for businesses that need strict data protection protocols.

On the other hand, although the Cloud Server has excellent security measures, security compliance standards might be limited because businesses are using a shared infrastructure. One company can also not customize security because other businesses share the cloud.

Cost

A dedicated server has a high upfront cost because setup, hardware, and even maintenance are solely the responsibility of the business using it. However, it gets cheaper with time because resources are high, and consistency improves business operations.

The Cloud server can be more cost-effective because its pricing is flexible, affordable, and dependent on businesses' workload and usage. Still, it can vary with peak periods and surprise you with pricing.

Customization

A dedicated server is very customizable because the business using it has complete control over all areas, including applications, operations, and configurations.

Cloud servers have limitations in customization because cloud server providers always use templates and settings already configured.

Performance

A dedicated server delivers consistently high performance for businesses because it has exclusive resources, making it suitable for businesses and applications that need intensive resources.

Cloud servers, on the other hand, deliver moderate performance because resources are shared across all users. This often results in performance lags during periods of high traffic.

Scalability

Dedicated servers offer limited scalability because scaling requires time and cost, as well as purchasing and setting up the extra hardware.

Cloud servers are very scalable because you can decrease or increase the resources based on unique business requirements.

Maintenance and Management

A dedicated server requires IT personnel to handle software, security, and hardware; these professionals can be in-house or outsourced.

Cloud servers will be completely managed and maintained by the cloud provider, with little need for IT experts.

Cloud Server vs Dedicated Servers: Which is Better for Small Businesses?

You need to know what your business needs to decide between a cloud or a dedicated server.

 

Choose a Dedicated Server for your business:

  • Needs to have total control over the server and configurations
  • Needs to meet strict compliance such as HIPAA and GDPR
  • Handles sensitive customer data
  • Requires high performance consistently for applications that are resource intensive.
  • Has a workload that accounts for the high upfront cost

 

Choose a Cloud Server for your business:

  • Needs to access data and applications remotely.
  • Requires scalability and flexibility (Needs to scale up or scale down based on fluctuating traffic)
  • Lacks an in-house IT team for server management.

 

Understanding Cloud Repatriation 

Cloud repatriation is the process of moving data and workloads stored in the cloud back to a dedicated server. When a business realizes that it needs a dedicated server, repatriating its data to a dedicated server becomes imperative.


Here are a few cloud repatriation examples:

Several businesses and companies have repatriated some or all their data from cloud servers to dedicated servers.


For instance, Pinterest uses the cloud for some data and has parts of its infrastructure on dedicated servers.

Dropbox also moved from Amazon Web Services, on which it was built, to a customized infrastructure for improved performance.

Similarly, many businesses in data-intensive industries like finance and healthcare repatriate sensitive data to dedicated servers to comply with data protection regulations.

Some businesses may decide to own and manage dedicated servers to meet their current and long-term needs.

 

Conclusion 

Deciding between a dedicated server and a cloud server depends on the needs of your business.

If your needs are more hybrid, you can embrace both cloud and dedicated servers for performance, reliability, flexibility, and scalability.

author

Chris Bates

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