Illustration of cloud hosting with interconnected icons representing security, performance, global reach, and scalability. A laptop displays an online storefront with a product image, symbolizing e-commerce powered by cloud hosting.

What Is Cloud Hosting & How Does It Work?

Curious about cloud hosting and how it can boost your website performance? This blog post dives into everything you need to know about cloud hosting – how it works, its benefits, and why it’s a top choice for growing businesses. 

What Is Cloud Hosting?

Cloud hosting is a modern web hosting model that utilizes multiple virtual servers. Instead of relying on a single physical server, it operates within a cloud computing environment, where resources are pooled from a network of interconnected physical servers, known as the “cloud.” 

Through cloud hosting solutions, businesses can access computing power, storage, and hosting services without the limitations of physical infrastructure.

Cloud hosting has become especially popular for its scalability, flexibility, and cost-effectiveness.   

How Does Cloud Hosting Work?

Cloud hosting works by using virtualization technology, which connects physical web servers and divides them into multiple virtual machines. 

These virtual servers can be configured and allocated based on the needs of each business, providing dedicated resources without the need for separate physical infrastructure. 

Comparison of web hosting and cloud hosting. Web hosting is depicted as a single server linked to a computer, while cloud hosting shows multiple interconnected servers forming a flexible, scalable cloud infrastructure.

The cloud hosting environment is a complex network of servers located in data centers across multiple locations. 

Both in shared and dedicated web hosting, a website relies on a single physical server. However, with cloud hosting, if one server fails, another server in the cloud network seamlessly takes over. 

This system provides high availability and minimal downtime for websites. 

1. The Role of the Hypervisor

The hypervisor is a type of software installed on physical servers that controls the creation of virtual machines and distributes resources to them. It connects physical servers, turning them into virtual resources that work as a single unit. 

The hypervisor is a critical component in virtualization and manages this setup. It ensures that each cloud server operates independently. 

This gives cloud hosting providers the ability to dynamically allocate computing resources, maximizing efficiency and performance. 

Diagram showing the role of a hypervisor in virtualization. Hardware connects to a hypervisor, which allocates resources to multiple operating systems running on separate virtual machines.

Benefits and Key Features of Cloud Hosting

1. Scalability and Flexibility

One of the biggest advantages of cloud hosting is that it offers scalable resources. With cloud hosting services, businesses can easily scale their resources up or down based on demand, without the limitations of a single server’s processing power. 

This makes cloud hosting a great choice for websites experiencing fluctuating traffic or seasonal spikes.

2. High Uptime and Reliability

Cloud hosting offers exceptional reliability because websites are hosted on multiple servers. When a server fails, the system automatically shifts the load to another server in the network, ensuring minimal downtime. 

Most cloud hosting providers guarantee uptime percentages of 99.9% or higher, which is particularly important for businesses where website availability is critical.

3. Cost-Effectiveness

With cloud hosting services, the need for costly hardware investments is eliminated. Instead, businesses can rely on a third-party provider that manages and maintains the physical infrastructure. 

The pay-as-you-go pricing model in cloud hosting is budget-friendly. It allows companies to avoid upfront expenses and scale their costs according to their actual usage.

This gives flexibility to managed hosting providers like SiteGround. We can dynamically scale resources to meet traffic demands and optimize costs. For end-users, this means SiteGround can offer scalable, high-performance plans with predictable monthly pricing.

4. Security and Compliance

Cloud hosting solutions often come with advanced security measures, including data encryption, firewalls, and strict access control policies. 

Leading providers like Google Cloud Platform (GCP) invest heavily in security, offering reliable protections for customer data stored in the cloud. While security risks exist in cloud hosting, reputable cloud providers take proactive steps to mitigate them. 

5. Global Accessibility

Cloud hosting enables businesses to reach a global audience, thanks to the widespread distribution of data centers. As such, leading providers offer cloud services through a network of data centers that spans multiple regions around the world. 

Image displaying a globally distributed infrastructure of servers on a world map.

Furthermore, cloud providers offer multiple data center locations, enabling companies to host data closer to their target audience for faster load times and optimized performance. 

We currently offer hosting services in 12 data centers on four continents, and also have an in-house built CDN system with close to 20 CDN locations and multiple CDN edges.

Who’s Cloud Hosting Best For?

Cloud hosting is versatile, so it’s suitable for various applications and businesses.

  • Small and Medium Businesses (SMBs): Cloud hosting’s scalability and cost-efficiency make it ideal for SMBs looking to grow without substantial upfront investments.
  • High-Traffic Websites and Ecommerce: Websites that need increased processing power, traffic capacity, and disk space benefit from cloud hosting’s resource flexibility and better performance.
  • Web Development Agencies: Agencies with multiple clients and projects can leverage cloud hosting to streamline management across different websites.
  • Enterprise Applications: Companies that need extensive computing resources for analytics, artificial intelligence, or large-scale applications can achieve this more affordably with cloud hosting solutions.

Types of Cloud Hosting

Cloud services can be categorized into four different types of hosting. Each type uses different technologies for backend management and resource allocation.

1. Public Cloud

In a public cloud setup, a third-party provider supplies all the servers, resources, and management. Businesses don’t need to own physical servers – they scale resources on demand, and develop custom features on top of the public cloud infrastructure.

Common examples of large-scale public cloud providers are the Google Cloud Platform (GCP), Amazon Web Services (AWS), and Microsoft Azure.

2. Private Cloud

A private cloud is managed and hosted by the business itself. All servers, storage, and resources are owned in-house, which gives full control, but requires managing the infrastructure. 

Financial institutions or government agencies may use a private cloud setup for compliance, enhanced security, and full control over sensitive data handling. 

3. Hybrid Cloud

Hybrid clouds combine private and public clouds, allowing businesses to store some data privately and use third-party resources for other needs. This approach supports flexible data and application handling.

4. Managed Cloud

A managed cloud is a public cloud where the provider takes care of operations, from monitoring to security and performance optimizations. This model is great for companies that want cloud power but prefer to focus on core business, not backend IT management. 

SiteGround offers managed cloud hosting plans that are built on top of GCP’s infrastructure. This means that while clients benefit from the scalability and reliability of Google Cloud Platform, they are also provided with additional support, custom features and management tools from SiteGround.

Choosing a Cloud Hosting Provider

Selecting the right cloud hosting provider is essential to get the most out of cloud hosting. Here are some key factors to consider:

  • Performance and Reliability: Look for providers with high uptime guarantees, efficient cloud infrastructure, and reputable data centers.
  • Scalability: Ensure the provider offers easy scaling options to support your business growth. 
  • Pricing Models: Compare pricing structures and choose a hosting plan that aligns with your budget and expected usage.
  • Security Measures: Evaluate the provider’s security offerings, such as encryption, firewalls, and compliance with industry standards.
  • Customer Support: Reliable, 24/7 customer support is critical, especially if you lack in-house technical expertise.

Many cloud hosting providers offer trial plans or flexible pricing options, which can help you test out their services before committing.

1. Why Choose a Managed Cloud Hosting Provider for Your Website?

Using a large-scale public cloud provider like GCP or AWS can be cumbersome from a technical standpoint. While it’s less involved than setting up a private cloud network, it still requires a lot of expertise to utilize public cloud services for website hosting.

For most users, a managed cloud hosting plan is the best choice. SiteGround has invested a lot of time and resources in optimizing their cloud servers, offering performance, security and management features that allow users to focus on their site and business.

The main benefits of SiteGround’s Managed Cloud Hosting are:

  • Expert Support and Maintenance: 24/7 support and proactive monitoring to keep your site running smoothly.
  • Enhanced Security: Built-in security features, regular updates, and compliance support.
  • Optimized Performance: Load balancing, autoscaling, and uptime guarantees for reliable site performance.
  • Cost Efficiency: Predictable pricing, optimized resource use, and no hardware costs.
  • Scalability: Seamlessly adjust resources to handle traffic growth or fluctuations.
  • Simplified Management: Focus on your business while we handle the technical backend.

Cloud Hosting vs Other Hosting Types

Cloud hosting can be distinguished from other hosting models, like shared hosting, VPS hosting, and dedicated hosting in a variety of ways – let’s explore how.

1. Cloud Hosting vs. Shared Hosting

Shared hosting is an entry-level hosting solution where multiple websites share resources on a single server. While cost-effective, it lacks the scalability and reliability of cloud hosting. 

Cloud hosting, on the other hand, allows websites to draw from a large pool of resources across multiple servers. 

For growing businesses, cloud hosting is preferable as it offers more computing resources and flexibility.

2. Cloud Hosting vs. VPS Hosting

Virtual Private Servers (VPS hosting) provide dedicated resources on a shared physical server. While it offers better performance than shared hosting, VPS is still limited to a single physical server. 

Cloud servers provide enhanced scalability and resilience, as they aren’t confined to a single server. Cloud hosting works by allowing resources to scale dynamically based on demand, whereas VPS has more rigid limitations.

3. Cloud Hosting vs. Dedicated Hosting

Dedicated hosting gives exclusive access to a dedicated server for a single customer. Although this offers the highest level of control, it comes at a higher cost and lacks the flexibility found in cloud hosting. 

For example, if you are on a dedicated server and need to upgrade your CPU or RAM memory, the process must be done manually by someone with the necessary expertise, and physical access to the machine. 

In contrast, cloud hosting providers deliver similar performance but with the added benefits of resource scalability, making it a more cost-effective solution for many businesses. 

Get Started with Cloud Hosting Today!

Cloud hosting provides a combination of scalability, performance, and security that’s hard to match with traditional web hosting models.

Whether you’re running a high-traffic website, managing multiple client projects, or looking for a way to grow your website, cloud hosting solutions can offer you the necessary tools and resources.

Using a managed cloud hosting service can take your website or online business to the next level. Reach out to our sales team if you wish to learn more! 

Aleksandar Kolev

Technical Content Writer

Aleksandar has been with SiteGround since 2019, always striving to bring both a keen analytical mindset and a creative touch to his work. As a technical content writer, he is dedicated to making complex topics accessible and engaging. Outside of work, Aleksandar enjoys a minimalist, nature-focused lifestyle and has a passion for music and performing. His ongoing interest in yoga, Tai-Chi, and meditation adds to his balanced approach to both life and work.

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