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Cloud Servers: Definition, Types, How They Work, Uses & Benefits

Want to know the secret behind all those websites and apps you use every day? A large portion of them run on cloud servers, the backbone of cloud computing. Keep reading to learn what a cloud server is, the different types available, the benefits and how to find the perfect one for your needs.

Mercy WawiraAleksander Hougen

Written by Mercy Wawira (Writer)

Reviewed by Aleksander Hougen (Co-Chief Editor)

Last Updated: 2024-08-02T17:46:59+00:00

All our content is written fully by humans; we do not publish AI writing. Learn more here.

A cloud server is a virtual computer that runs in a cloud computing environment. Unlike physical servers, a cloud server is created, hosted and managed by a cloud service provider. There are three main types of cloud servers: public, private and hybrid. 

Public cloud servers are shared among multiple users and hosted by third-party providers. Private cloud servers are dedicated to a single organization and offer more control and security. Hybrid cloud servers combine public and cloud servers and provide more flexibility.

Cloud servers work through virtualization: One physical server runs multiple virtual servers. Each virtual server operates independently and shares the physical server’s resources, like CPU, memory and storage. This setup ensures efficient use of hardware and flexible scaling based on demand for FTP servers, gaming servers, web hosting and database management.

One of the major benefits of cloud servers is that they reduce costs by eliminating the need for companies to buy and maintain their hardware. They also offer pay-as-you-go pricing, so you only pay for the resources used and can easily scale resources up or down based on demand. 

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However, challenges include security concerns, potential downtime and reliance on internet connectivity. Despite these issues, the advantages often make cloud servers many businesses’ preferred choice.

What Is a Cloud Server?

A cloud server is a virtual server that operates in a cloud environment. In practice, it functions just like a physical server, performing tasks such as storing data, running applications and processing information. 

The core elements of a cloud server include virtualization technology, which allows multiple virtual servers to run on one physical server, and a hypervisor, which manages the virtual machines. Network infrastructure connects the virtual servers to the internet, providing users with remote access.

Server Virtualization
Multiple cloud servers operate on a single physical server, managed by a hypervisor.

Why Is It Called a Cloud Server?

It’s called a cloud server because they are hosted and delivered over the internet, which is often called “the cloud.” The cloud represents the idea that a server’s physical location doesn’t matter; you can access cloud services from anywhere over the internet.

What Are the Types of Cloud Servers?

T he types of cloud servers are public, private and hybrid. Cloud servers are key parts of cloud computing and each type meets different needs and brings unique advantages to cloud computing setups. We discuss the different types of cloud servers in depth below.

cloud deployment models graphic
A cloud server can belong to a public or private cloud. It can also be part of a hybrid cloud or multi-cloud for operations that require multiple cloud servers in different locations.
Public Cloud Server

A public cloud server is hosted by a third-party cloud service providers to many different users and clients who share the same resource pool.

These servers are flexible and save money, as you only pay for what you use. They can grow to meet demand, and you don’t have to maintain them yourself. However, there are some drawbacks. Sharing resources among users can increase security risks, and you have little control over the server.

Private Cloud Server

A private cloud server is for one organization’s exclusive use, which provides greater control and enhanced security since it isn’t shared with others. Key features include dedicated resources, customizable storage and strict access controls. However, it involves higher costs, and the organization is responsible for maintaining the server and managing the technology.

Hybrid Cloud Server

Hybrid cloud servers combine elements of both public and private cloud servers. They offer a balance of scalability and security by allowing data and applications to be shared between both environments. The main benefit is flexibility, as users can choose the best environment for each task. However, managing and integrating both types of servers can be complex.

How Does a Cloud Server Work?

Cloud servers work through a process called virtualization. With virtualization, a single powerful physical server can be partitioned into multiple isolated virtual servers, each running its own operating system and applications. This allows server resources like CPU, memory and storage to be efficiently shared and allocated as needed.

Cloud service providers manage this setup by running virtualization software in their data centers, which host numerous physical servers. Users can then access and use these virtual servers remotely over the internet, without the need to maintain any physical hardware themselves.

What Are the Applications of Cloud Servers?

Cloud servers have many different applications, including hosting SQL databases, running gaming platforms and providing large-scale storage solutions. They serve as versatile tools that boost efficiency and flexibility across various industries. They are used for a wide range of functions. 

Cloud servers can quickly adjust to variable workloads, making them perfect for businesses that see many ups and downs. They also help remote teams by letting them access applications and data from anywhere, which boosts collaboration and productivity. We discuss these applications in detail below.

Cloud File Server

A cloud file server is a virtualized server solution dedicated to storing and providing access to files and documents over the internet. The main purpose is to let people access data from anywhere at any time while keeping that data safe with encryption and backup features. Businesses often use cloud file servers to enable collaboration, file-sharing and remote access.

Cloud-Based Web Server

Cloud-based web servers host websites and web applications on a cloud computing platform. They deliver web content to users over the internet and handle requests for web pages and images with high reliability and uptime. These servers are highly scalable, allowing websites to manage traffic spikes, and they’re cost-effective — businesses only pay for the resources used.

Cloud Storage Server

Cloud storage servers are virtualized infrastructures that provide online storage and backup solutions for files and data. Their main purpose is to allow users to upload, store and access files from any internet-connected device, facilitating file-sharing and synchronization. These servers are essential for data storage, archiving and disaster recovery.

Cloud VPS Server

A cloud VPS (virtual private server) is a virtual machine rented from a cloud provider’s network of physical servers. They act as a dedicated server for individual users and provide root access and control over computing resources. They’re ideal for businesses that require unique configurations and are mainly used for hosting websites, running applications and storing data.

Cloud-Based Database Servers

Cloud-based database servers are virtualized server environments designed by a cloud provider to host databases remotely. They offer scalable storage, processing power and easy database management through the provider’s platform, plus tools for organizations. Use cases include e-commerce applications, Software-as-a-Service solutions and big data analytics workloads.

Cloud-Based Gaming Server

A cloud-based gaming server is a virtual server optimized specifically to facilitate real-time online gameplay between multiple users across different geographic locations. The core purpose is to minimize latency and provide a seamless multiplayer gaming experience by hosting and synchronizing game instances close to players.

Cloud SQL Server

A cloud SQL server hosts SQL databases in the cloud, making them accessible and manageable over the internet. These servers are used for data storage, management and retrieval in applications that require structured data handling. Advantages of cloud SQL servers include high availability, automatic backups and updates, and scalability based on demand.

What Are the Benefits of a Cloud Server?

Cloud servers offer benefits like flexibility, scalability, cost savings, reliability and easy access from anywhere. 

  • Scalability: Cloud servers are scalable because they utilize virtual resources that can quickly be adjusted. This allows them to expand or reduce their capacity based on user demand, without the need for physical alterations. Users benefit from the ability to efficiently manage large amounts of work or data during peak periods.
  • Enhanced security: Cloud servers offer strong security measures to protect data. Cloud platforms use advanced security protocols, encryption and regular updates to keep information safe. This helps protect customers against data breaches and unauthorized access, ensuring their sensitive information remains secure.
  • Cost efficiency: Cloud servers are cost-effective because they operate on a shared resource model. You pay for only the resources you use, eliminating the need to invest in and maintain expensive hardware. This results in significant savings for businesses, particularly those with fluctuating resource requirements.
  • Reliability: Cloud servers are designed for high reliability and availability, with redundant infrastructure and automatic failover mechanisms. Cloud providers’ robust data centers and disaster recovery strategies make this reliability possible. For users, this benefit ensures uninterrupted access to applications and data, minimizing downtime.
  • Remote access: Users can access cloud servers from anywhere with an internet connection. Cloud servers operate online, which enables employees to work from different locations and collaborate more easily. This enhances productivity and flexibility for businesses and individuals.

What Are the Challenges of Cloud Servers?

The most common challenges of cloud servers are security concerns, data privacy issues, downtime and reliance on internet connectivity. Though the benefits of cloud servers outweigh the challenges, users should be aware of certain issues that can arise. 

  • Security concerns: Cloud service providers implement strong security measures. However, the centralized nature of cloud services can attract cyberattacks due to many users storing their data in the same environment. The main effect on users is the potential risk of data breaches, which can compromise sensitive information.
  • Downtime: Cloud infrastructure relies on complex systems that can fail, and cloud servers can experience outages due to technical failures, natural disasters, maintenance or cyberattacks. This could lead to users facing interruptions in their services, which could affect business operations and accessibility.
  • Data privacy issues: Storing data on cloud servers raises concerns about who can access that data. Users may worry about privacy and compliance with regulations like HIPAA or the GDPR. Though cloud providers are subject to these laws and regulations, unauthorized access is a risk. Users must trust their data is being handled properly.
  • Dependence on internet connectivity: Cloud servers require a stable internet connection for access. If users have poor internet connectivity, they might experience slow performance or be unable to access their data and applications. This can affect productivity and cloud-based service reliability.
  • Cost management: Managing costs can be difficult, as cloud server expenses can grow unexpectedly. Users may underestimate their resource usage or fail to monitor it closely. This can result in higher-than-expected bills, which can strain budgets and affect financial planning.

Factors to Consider When Choosing a Cloud Server

The factors to consider when choosing a cloud server are performance, cost, security, scalability and support. It’s important to evaluate all key factors to ensure the cloud server meets your needs. 

Performance

This entails having enough computing power, memory, storage and network capacity to run applications and workloads. Check the server’s speed, reliability and uptime. High performance ensures applications run smoothly and efficiently. A slow or unreliable cloud server can negatively affect user experience and productivity.

Cost

Understand the pricing model and total cost of ownership. Look for pay-as-you-go options that charge based on actual usage, including data transfer and additional services. Effectively managing these costs helps you avoid unexpected expenses and stay within budget.

Operating Systems

Ensure the cloud server supports the operating systems you need. Compatibility with your preferred operating system allows for easier application deployment and management. Using an unsupported operating system can lead to technical issues and suboptimal performance.

Processing Power

Assess the server’s computing power and ability to handle your applications. A server with high processing power can quickly process data and execute tasks for smooth, efficient operation. Insufficient computing power can mean slow performance and delays, negatively affecting user experience and overall productivity.

Geographic Location

The physical location of the data center can impact performance and compliance. Cloud servers closer to your users can offer faster response times. Keep in mind that some data regulations require data to be stored in specific regions.

Support

Check the level of customer support the cloud provider offers. Good support includes 24/7 availability, quick response times and knowledgeable staff. Reliable support helps you quickly resolve issues and maintain smooth operations.

Security

Evaluate the security measures in place to protect your data on the cloud platform you choose. This includes encryption, firewalls and compliance with regulations. Strong security from your cloud provider protects against data breaches and ensures your information remains safe.

Scalability

Scalable cloud servers can efficiently handle fluctuations or growth in workloads. Consider whether the cloud server can easily scale up or down to handle variable workloads based on your needs. Having the ability to adjust resources as demand changes ensures you only pay for what you use.

Reliability

This includes consistent uptime (the amount of time the server is operational and accessible), minimal outages and robust disaster recovery solutions. A reliable cloud server guarantees your data and applications are always available when needed.

Ecosystem & Integrations

Consider how well the cloud provider’s services and tools can work with your existing IT systems, applications and development processes. Having good integration capabilities makes it easier to transition to the cloud without disrupting your current setup and investments.

Compliance & Certifications

Check whether the cloud provider meets the compliance requirements and has the necessary certifications for your industry or geographic region. Following regulations like PCI-DSS and ISO 27001 is critical, especially when handling sensitive information or operating in regulated sectors.

What Are the Best Cloud Servers?

Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform are considered the best cloud servers due to their extensive features, reliability and global network presence.

What Are the Best Free Cloud Servers?

Top free cloud server options include the free tiers of AWS, Google Cloud, Oracle Cloud and Microsoft Azure.

What Are the Best Cloud Servers for Small Businesses?

The cloud servers we recommend for small businesses include DigitalOcean, Vultr, Linode and Amazon Lightsail.

What Are the Best Cloud Servers for Enterprise?

AWS, Microsoft Azure, Google Cloud, IBM Cloud and Oracle Cloud Infrastructure offer leading enterprise-grade cloud servers.

Can a VPN Be Used in a Cloud Server?

Yes, a virtual private network (VPN) can be used to securely connect to cloud servers over an encrypted connection.

How to Manage the Security of a Cloud Server

Some tips to manage the security of a cloud server are written below:

  1. Control who can access the cloud server and data by properly setting up user accounts and permissions.
  2. Regularly update the cloud server’s operating system and your virtual machine’s software with the latest security patches to fix known vulnerabilities.
  3. Use security tools that the cloud platform offers, like firewalls, DDoS protection and security monitoring, to protect your cloud computing environment.
  4. Regularly back up data, storing it in a separate data center to ensure redundancy.
  5. Create security rules and compliance controls specifically for managing your cloud servers privately.
  6. Routinely perform security audits and penetration testing to identify and fix weaknesses in your cloud servers.
  7. Encrypt data stored on multiple cloud servers and during transmission to protect it from unauthorized viewing.
What Is the Difference Between a Cloud Server & a Traditional Server?

The difference between a cloud server and a traditional server, often referred to as a bare metal server, lies in the location and management of the server hardware. A traditional server is a physical computer system that an organization owns and maintains either on premises or in the data center where it operates. 

In contrast, a cloud server is a virtual server that operates on virtual infrastructure within a cloud environment that a cloud computing service provider owns and manages. This arrangement enhances cloud security, as the provider actively manages the security of the physical infrastructure.

What Is the Difference Between a Cloud Server & a VPS?

Cloud servers and virtual private servers (VPSs) differ in how they manage server hardware. Cloud servers operate using virtual machines, where resources are shared across a pool of dedicated servers that the cloud provider manages. VPSs split one dedicated server into separate virtual machines, providing each one with dedicated computing resources.

Final Thoughts

Cloud servers provide flexible and scalable solutions for web hosting, data storage, gaming and database management. There are many different approaches to cloud servers, including hybrid, public and private clouds, all of which have benefits and security challenges. Top providers include AWS, Google Cloud and Microsoft Azure.

What type of cloud server best suits your business needs? How does the flexibility of cloud servers impact your operational efficiency? Which factors are most important to you when choosing a cloud server?

FAQ: Cloud Server

  • To run a cloud server, sign up with a cloud provider like AWS, Google Cloud or Azure. Then, choose and configure the server type, including the operating system and storage. After setting it up, deploy your applications and use the provider’s tools to monitor and manage multiple virtual machines on the server.

  • Cloud servers come in three main types: public, private and hybrid, each offering different benefits and use cases.

  • There is no one-size-fits-all, “best” cloud server. The ideal choice depends on your specific requirements. However, some of the most widely used cloud server providers include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform and IBM Cloud.

  • Cloud server costs are variable and depend on the instance type, services used and billing model. Costs typically range from a few dollars per month for basic instances to hundreds or thousands of dollars per month for high-performance servers.

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