What Is Cloud Hosting?

A business guide to cloud hosting benefits, costs, and top providers.
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What Is Cloud Hosting?
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Cloud hosting involves developing and running different applications on servers in the cloud. This approach provides more reliability, security, and flexibility at an affordable price.

To help you understand cloud hosting and how it works, we’ve created this simple guide with everything you need to know. Our experts also share the benefits of cloud hosting and the top web hosting providers to consider for your website.

Cloud Hosting: Key Points

  • Multiple interconnected servers keep sites online, avoiding costly outages like Amazon’s $100M Prime Day loss.
  • 8 in 10 businesses cut expenses by moving to the cloud, avoiding hardware and maintenance costs while maintaining 99.99% uptime.
  • Leading providers offer 99.99% uptime SLAs, ensuring consistent service availability.

What Is Cloud Hosting?

Cloud hosting, also known as cluster server hosting, uses cloud resources such as data storage and servers to store and host websites.

It’s an essential component of web development that allows you to spread your website content across multiple interconnected servers in a virtual environment, also known as the cloud.

This provides more flexibility instead of hosting your website on a single, physical server and sharing it with a few people (known as shared hosting).

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How Does Cloud Hosting Work?

Cloud-based hosting works through virtualization, a technology that creates a virtual version of a physical resource, such as a server.

In cloud-based hosting, virtualization splits a physical server into multiple virtual machines or cloud servers.

Unlike traditional hosting plans, where your website relies on a single server, cloud hosting connects multiple servers to create a virtual system for hosting websites, providing email hosting, or even VOIP hosting.

Think of cloud server hosting as web hosting with a safety net. Because there are multiple servers, even if one fails, your website won't crash since it has other servers to depend on.

Additionally, when it comes to cloud hosting costs, many platforms offer a pay-as-you-go system, allowing you to only pay for the computing power you use. This makes for a more effortless scalability.

Top 8 Cloud Hosting Providers

Leaning toward cloud-based hosting for your website? Here are eight cloud web hosting providers you can partner with:

  1. Kamatera
  2. Atlantic.Net
  3. RunCloud
  4. HostGator
  5. Nexcess
  6. InMotion
  7. AccuWeb Hosting
  8. DreamHost

1. Kamatera

kamatera website
[Source: Kamatera]

As one of the top cloud hosting providers, Kamatera is internationally acclaimed with 13 worldwide data centers. It is known for extensive cloud security features, including load balancers, private networks, and firewalls.

With Kamatera, you can:

  • Access unlimited bandwidth.
  • Pause and restart your servers at any time.
  • Assign roles to your administrators.
  • Utilize automated backups.

Price: Kamatera provides a 30-day free trial on cloud products and offers plans starting at $4/month.

2. Atlantic.Net

atlantic.net website
[Source: Atlantic.Net]

Atlantic.Net offers reliable cloud hosting backed by a 100% uptime SLA and U.S.-based support. Their platform supports quick deployment, scalable resources, and global data center availability.

With Atlantic.Net, you can:

  • Deploy Windows, Linux, or FreeBSD servers in about 30 seconds
  • Scale CPU, RAM, and storage on demand via control panel or API
  • Use RAID-10 SSD storage with optional daily backups
  • Access private networking, block storage, and one-click apps
  • Choose from eight data center locations worldwide

Price: Atlantic.Net cloud hosting plans start at:

  • On-Demand: 
    • $10/month (Linux)
    • 16.5/month (Windows)
  • 1-Year Term: 
    • $9/month (Linux)
    • $15.5/month (Windows)
  • 3-Year Term: 
    • $8/month (Linux)
    • $15.5/month (Windows)

3. RunCloud

RunCloud
[Source: RunCloud]

Launched in 2016, RunCloud is an affordable web hosting option that offers reliable storage, VPS hosting server configuration options, and 24/7 website monitoring.

With RunCloud, you can:

  • Utilize automated backups.
  • Benefit from website security, such as free SSL certificates and firewall protection.
  • Access automated server configuration and security updates.

Price: Runcloud plans start at

  • Essentials: $9/month
  • Professional: $19/month
  • Business: $49/month
  • Enterprise: $399/month

4. HostGator

hostgator website
[Source: HostGator]

One of the best cloud hosting providers is HostGator. Founded in 2002, it is one of the most cost-effective options on the market, with shared hosting starting at just $2.75 per month.

Despite its low price, HostGator does not compromise on quality.

With HostGator, you can:

  • Get a free SSL certificate on all plans.
  • Access a dashboard to monitor website performance easily.
  • Take advantage of free site transfers.
  • Be guaranteed a 99.99% uptime.

Price: HostGator provides three cloud hosting packages with the following introductory pricing:

  • Hatchling Cloud for $3.75 per month
  • Baby Cloud for $4.50 per month
  • Business Cloud for $6.25 per month
  • Pro for $13.95 per month

5. Nexcess

nexcess website
[Source: Nexcess]

Brought to you by Liquid Web, this cloud server hosting solution is perfect for eCommerce websites. Nexcess is great for rapidly growing businesses that need a solution to keep up with their growing demands.

With Nexcess, you can:

  • Boost load times with Nexcess Cloud Accelerator
  • Access 24/7 support
  • Access a built-in CDN
  • Enjoy no traffic limits, no overage fees, and no metered pageviews.

Price: Regarding cloud hosting costs, Nexcess provides six options: 

  • XS: $64/month
  • S: $113/month
  • M: $237/month
  • L: $399/month
  • XL: $725/month
  • XXL: $1,128/month

6. InMotion

inmotion website
[Source: InMotion]

InMotion provides the best cloud hosting services for advanced users. It offers WordPress hosting, shared hosting, and VPS hosting. InMotion is also perfect for small business web hosting because of its scalability.

With InMotion, you can:

  • Have a dedicated IP address
  • Be guaranteed a 99.99% uptime
  • Access the Resource Monitoring Dashboard to monitor RAM, load usage, and bandwidth
  • Enjoy free SSL and cPanel license
  • Get free auto backups
  • Benefit from a 90-day money-back guarantee

Price: InMotion offers several cloud hosting services suitable for applications, resellers, small businesses, and enterprises. The price starts at $6.00 per month.

7. AccuWeb Hosting

[Source: AccuWeb]

This hosting platform is one of the best cloud hosting providers and has been in the industry since 2003. Rest assured they know what they’re doing. AccuWeb offers several server locations, so it’s perfect for websites that want to maximize the area where they get the most traffic.

With AccuWeb, you can:

  • Choose between Windows or Linux servers
  • Enjoy stellar customer service
  • Be guaranteed a 100% hardware uptime
  • Enjoy instant account activation and DDoS protection

Price: AccuWeb cloud hosting starts at $7.99/month.

8. DreamHost

DreamHost
[Source: DreamHost]

While many of the best cloud hosting platforms focus on Linux OS, DreamHost can also be used on Windows and BSD. DreamHost is best for beginners due to its easy setup — you can go live within 30 seconds.

However, one of its biggest downsides is limited customer support. You can only contact them via live chat or email, and they’re available for only 16 hours daily.

With DreamHost, you can:

  • Have full root access, allowing you to scale apps horizontally and vertically
  • Get flexible cloud server options
  • Be guaranteed a 99.77% uptime
  • Use it on Linux, BSD, and Windows operating systems

Price: DreamHost cloud hosting pricing plans start at $4.50/month.

5 Benefits of Cloud-Based Hosting

We asked our experts to share some of the benefits they’ve experienced when using cloud-based hosting services.

Chris Beecher, Principal and Lead Developer at Hivehouse Digital, summarized the benefits of cloud-based hosting for us:

“Cloud hosting lets you focus on your business instead of managing systems, networks, or web servers. It allows easy creation of test environments for new features and upgrades. Each application instance operates in its secure container, unlike shared server instances. You can also choose the hosting location for faster response times for your audience. Cloud hosting shields you from server hardware failures and ISP disruptions, ensuring reliable operations.”

From always making your website available to increased data security, here are the key benefits of cloud hosting:

  1. Increased reliability
  2. Improved security
  3. Recover backup data
  4. Lower costs
  5. Faster access to data

1. Increased Reliability

The first benefit you get from cloud hosting compared to other types of hosting is reliability. If your website relies on a single server, it can be at risk if your server crashes.

eCommerce giant Amazon learned this the hard way during Amazon Prime Day 2018.

On July 17, 2018, Amazon did not have enough servers to handle the massive traffic, causing the website to go offline for 13 minutes. Knowing that Prime Day is an anticipated day for online shoppers, Amazon could have spread their website data among multiple servers (more than usual) to accommodate the traffic surge they experienced.

Instead, they lost an estimated $100 million in sales due to server downtime.

This is where cloud hosting comes in handy. Thanks to its interconnected virtual servers, cloud-based hosting allows your website to be accessible, even if one server goes offline.

2. Improved Security

The second crucial benefit of cloud hosting is better security. Cloud-based hosting is less vulnerable to cyber-attacks than other types of web hosting.

John Emtage, Technical Solutions Specialist at UClimb, states: "Cloud hosting offers enhanced security over shared hosting, effortless vertical scalability, superior uptime, robust servers with reduced bloatware and enhanced performance, and cost-effectiveness for high specifications and adaptable on-demand hosting."

Cloud-based hosting providers offer security solutions, such as data encryption, firewalls, backup recovery, and storage segregation. Some providers even offer free SSL or TSL encryption.

In addition, cloud-based hosting is equipped with a load-balancing feature that prevents distributed denial of service (DDoS) attacks from occurring.

DDoS attacks happen when a hacker floods your website with too much traffic, which can cause it to crash. If a server experiences a DDoS attack, load balancers help by rerouting traffic from one server to another.

3. Recover Backup Data

Next on the list of benefits is the ability to recover all your data if something happens to your site. The multi-server and interconnected nature of cloud-based hosting allows your data to be automatically backed up.

Dedicated web hosting providers offer free automated backups, SSL certification, and 24/7 security monitoring.

4. Lower Costs

Cloud hosting is less expensive than other types of hosting. Since cloud hosting plans are generally offered as a software-as-a-service (Saas), maintaining the necessary hardware falls on the vendor.

Customers only need to pay for services as they use them. In fact, one report showed that 8 out of 10 respondents have lower costs due to cloud employment.

Stephen Reece, Owner of Scrumfish Software, explains: "Choosing to host your applications in the cloud, [be it] Azure, AWS, or another, can save you tens of thousands of dollars a year while allowing you to give your customers a 99.99% uptime SLA.”

“When evaluating the cost differential between self-hosting and cloud hosting, companies often don't consider the cost of electricity, maintenance labor, bandwidth consumption, and other such items. Identifying the full cost of self-hosting when making the decision. When considering a 99.99% SLA, those self-hosting costs can rapidly spiral upward," he concludes.

This makes cloud server hosting a good option for small businesses with a limited budget and who can’t afford to buy and maintain on-site hardware.

5. Faster Access to Data

Finally, with a cloud hosting service, content delivery networks (CDNs) can provide faster access to resource-intensive data, such as graphics, images, sounds, streaming video, and other similar types of content.

Tim Volner, CEO at Poieo Dev, emphasizes: "Cloud hosting allows a website to be dispersed in an efficient way worldwide to ensure visitors get the fastest and most efficient experience."

The best cloud hosting platforms, such as Google Cloud hosting, can automatically identify which server is nearest to a user so that they can provide content from the closest source. This then increases website speed and reduces loading time.

Cloud Hosting Takeaways

Cloud hosting offers numerous benefits, including increased reliability, security, and data backup recovery. With cloud hosting, you don’t have to rely on a single server, which can be disastrous if it crashes. Plus, unlike reseller hosting, you don’t have to share servers and resources with other websites, which can slow down your page loading speed.

Cloud web hosting is ideal for robust web designs that demand high performance and bandwidth, especially if your site receives a lot of traffic.

Our team ranks agencies worldwide to help you find a qualified partner. Visit our Agency Directory for the top web development companies, as well as:

  1. Top Web Design Companies
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  3. Top Front End Web Development Companies

Our design experts also recognize the most innovative design projects across the globe. Given the recent uptick in web development, you'll want to visit our Awards section for the best & latest in website designs.

Cloud Hosting FAQs

1. Which is the best cloud hosting?

The best cloud hosting provider entirely depends on your needs. If you’re looking for the fastest loading times, you can turn to A2 Hosting. For advanced users, InMotion or DreamHost may be better suited to your requirements.

2. What is the difference between web hosting and cloud hosting?

With web hosting, the files for your website are stored on a single physical server. On the other hand, cloud hosting provides virtual servers that host your site. Data for your site is stored on multiple cloud servers, so if one server malfunctions, your website can still run on another server.

3. What is the difference between dedicated hosting and cloud hosting?

Dedicated hosting is great for large businesses and companies that require a dedicated physical server for their website to meet high levels of data security or steadily high server capacity demands. Cloud hosting, on the other hand, is perfect for small businesses with varied needs and workloads.

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