Cloud Hosting Architecture: Differences from VPS, Pros and Cons, and WordPress Cloud Hosting

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Cloud hosting is hosting where virtual servers are allocated CPU and memory from a resource pool built by combining multiple physical servers through virtualization.

It is not tied to a single physical server, but the bill changes with how much you use. This guide covers the resource pool structure, auto scaling, how it differs from a VPS, the pros and cons, and which sites it suits.

1️⃣ How Cloud Hosting Works: Many Servers, One Resource Pool

Cloud hosting combines multiple physical servers through virtualization into a single resource pool. Virtual servers are allocated CPU and memory from this pool, and disks are usually stored on network storage outside the physical servers. That is why a virtual server is not tied to any one physical server.

Cloud hosting

If one physical server has a problem, the virtual server starts running again on another physical server.

Cloud hosting: many servers, one resource pool
Not tied to one physical server
Virtual serversAllocated CPU and memory from the resource pool
Virtual server 1Mine
⚙️ CPU
🧠 RAM
Virtual server 2
⚙️ CPU
🧠 RAM
Virtual server 3
⚙️ CPU
🧠 RAM
Virtual server …
Resource pool · multiple physical servers combined through virtualization
⚠️ Physical server 1
🖥️ Physical server 2
🖥️ Physical server 3
Physical server …
💽 Network storage: disks
⚠️ If one physical server fails, the virtual server starts running again on another physical server.

2️⃣ Two Meanings of Cloud Hosting: Infrastructure and Product

Cloud Hosting has two meanings: it can mean the infrastructure or it can mean the product.

Cloud as infrastructure is the resource pool of a cloud provider such as AWS or Google Cloud. When they operate on this infrastructure, shared hosting, a VPS, and managed WordPress hosting are all referred to as cloud hosting.

Cloud hosting as a product is a plan where you use the resource pool directly. Resources increase and decrease with traffic, and you pay for what you use.

Two Meanings of Cloud Hosting
Infrastructure and product
InfrastructureA cloud provider's resource pool
Shared hosting
VPS
Managed WordPress hosting
☁️ AWS · Google CloudAnything operating on this infrastructure is cloud hosting
ProductA plan that uses the resource pool directly
📈 Resources increase and decrease with traffic
💳 You pay for what you use
More on shared hosting → What Is Shared Hosting? CPU/RAM Isolation, Limits, Pros and Cons

3️⃣ How It Differs from a VPS: Cloud VPS

A VPS is a virtual server created by dividing one physical server. If that physical server has a problem, the virtual server is interrupted with it. Cloud hosting runs virtual servers from a resource pool, so they start running again on another physical server.

A cloud VPS, by contrast, is a product sold as individual virtual servers on cloud infrastructure. DigitalOcean, Vultr, and AWS Lightsail fall into this category. The infrastructure is cloud, but it is used the same way as a VPS.

With a cloud VPS, you choose the virtual server size as a plan and pay a fixed monthly price, and resources do not grow automatically. When traffic increases, you change to a larger plan yourself.

Some cloud VPS products keep the disk inside the physical server. In that case, if the physical server fails, the virtual server stays down until it is recovered.

VPS · Cloud VPS · Cloud hosting
Infrastructure and how you use it
VPS
A virtual server carved out of one physical server
InfrastructureOne physical server
If a physical server failsThe virtual server stops with it
To add resourcesChange to a larger plan yourself
FeesFixed monthly price
Cloud VPS
Sold per virtual server on cloud infrastructure
InfrastructureA cloud provider's resource pool
If a physical server failsDown until recovered if the disk is inside the physical server
To add resourcesChange to a larger plan yourself
FeesFixed monthly price
Cloud hosting
A plan that uses the resource pool directly
InfrastructureA cloud provider's resource pool
If a physical server failsRestarts on another physical server
To add resourcesAutomatically increases and decreases with traffic
FeesPay as you go
VPS structure and overcommitment → What Is VPS Hosting? Virtual Server Structure, Overcommitment, Managed vs. Unmanaged, Pros and Cons

4️⃣ Auto Scaling and Usage-Based Pricing

Auto scaling automatically adds and removes server resources to match traffic. Rather than upgrading the specs of one server, the common approach is to add more servers, and a load balancer in front of them distributes visitors across them.

With usage-based pricing you pay for what you use, and server running time, data transfer, and storage are each calculated separately. In a month when traffic spikes, the bill rises with it.

A cloud VPS is also billed by the hour, but it has a monthly cap. That cap is the fixed monthly price.

You can build the same setup with several cloud VPS instances and a load balancer. In that case you configure the scaling up and down yourself.

Auto scaling and usage-based pricing
More servers, higher bill
Auto scaling
NormalLoad balancer
SurgeLoad balancer
Automatically adds and removes servers to match traffic. A load balancer distributes visitors across them.
Usage-based pricing
JanFebTraffic spike monthApr
⏱️ Server running time📶 Data transfer💽 Storage
You pay for what you use. In a month when traffic spikes, the bill rises with it.
A cloud VPS is also billed by the hour, but it has a monthly cap. That cap is the fixed monthly price.

🔲 AWS and Managed WordPress Hosting

Auto scaling and usage-based pricing are sold as-is by cloud providers such as AWS. With AWS EC2, the number of servers increases and decreases automatically, and you pay for what you use.

Even within AWS, Lightsail is a cloud VPS. You pay a fixed monthly price and change to a larger plan yourself when resources run short.

Cloudways is a managed cloud VPS where you choose the infrastructure from DigitalOcean, Vultr, AWS, and Google Cloud. It is billed by the hour and has no visit limits. Auto scaling comes in a separate product called Cloudways Autonomous.

Managed WordPress hosting mostly operates on cloud infrastructure but is sold as monthly plans. Infrastructure and limits differ by provider.

Kinsta is moving its infrastructure from Google Cloud to Oracle Cloud. If you go over the visit limit, the site stays in operation and the excess is billed as an overage. Pressable operates on Automattic's WP Cloud and fails over automatically to another data center if a server has a problem. WPX has three data centers and splits its plans by number of sites, with no visitor limits.

Real products: AWS and managed WordPress hosting
Infrastructure · Pricing · Limits
Cloud providerEven within AWS, it depends on the product
AWS EC2
InfrastructureAWS
FeesPay as you go
Resources and limitsThe number of servers increases and decreases automatically
AWS LightsailCloud VPS
InfrastructureAWS
FeesFixed monthly price
Resources and limitsChange to a larger plan yourself
Managed cloud VPSYou choose and use the infrastructure
InfrastructureChoose from DigitalOcean · Vultr · AWS · Google Cloud
FeesBilled by the hour
Resources and limitsNo visit limits · auto scaling is a separate product
Managed WordPress hostingSold as monthly plans
InfrastructureMoving from Google Cloud to Oracle Cloud
FeesMonthly plan
Resources and limitsOverage fees if you exceed the visit limit
InfrastructureAutomattic's WP Cloud
FeesMonthly plan
Resources and limitsAutomatic failover to another data center
Infrastructure3 data centers
FeesMonthly plans split by number of sites
Resources and limitsno visitor limits
More on managed WordPress hosting → What Is Managed WordPress Hosting? What the Host Manages, Managed VPS Differences, Pros and Cons
Press the WordPress button on the keyboard (WordPress)

5️⃣ Pros and Cons of Cloud Hosting

Cloud hosting is not tied to a single physical server, so the site stays in operation even if one server fails. When traffic spikes, resources increase, and when traffic drops they decrease again.

The trade-off is that the bill is hard to predict. Server running time and data transfer are calculated separately, so the bill rises in a month when traffic spikes. On AWS, data transfer is free up to 100GB each month, and beyond that you pay for what you use.

Auto scaling and the load balancer have to be configured by you.

If you want a fixed monthly price, use a cloud VPS or a managed cloud VPS. Cloudways starts at $11 a month. Lightsail charges an overage only when you exceed the data transfer allowance.

Pros and cons of cloud hosting
Pricing included
👍 Pros
🖥️
Not tied to one physical server · the site stays in operation even if one server fails
📈
Resources increase when traffic spikes
📉
Resources decrease again when traffic drops
⚠️ Cons
💳
The bill is hard to predict · the bill rises in a month when traffic spikes
🛠️
You configure auto scaling and the load balancer yourself
💰 Pricing
AWS EC2 · Pay as you go
Data transfer free up to 100GB a month
AWS Lightsail · Cloud VPS
Fixed monthly price
Cloudways · Managed cloud VPS
From $11/mo
Lightsail charges an overage only when you exceed the data transfer allowance.

6️⃣ Who Should Use Cloud Hosting

Cloud hosting is suited to sites where traffic spikes suddenly. Online stores that lose sales when the service is interrupted and services accessed from many countries also fall into this category.

For a blog or company site with steady visitor numbers, a cloud VPS is enough, and you can run it within a fixed monthly price.

If you don't want to configure servers yourself, use a managed cloud VPS or managed WordPress hosting. The providers we recommend are Cloudways, Kinsta, Pressable, and WPX, and we are direct affiliates of each.

Who should use cloud hosting
If any one applies
📈
Sites where traffic spikes suddenly
Some days visitors arrive all at once.
🛒
Online stores that lose sales when the service is interrupted
The site must stay in operation even if one physical server has a problem.
🌏
Services accessed from many countries
You place servers in regions close to your visitors.
✋
Sites where a cloud VPS is enough
Blogs · company sites with steady visitor numbers
If you don't want to configure servers yourself, use a managed cloud VPS or managed WordPress hosting.
Compare managed cloud and managed WordPress hosting → Top 7 WordPress Hosting Hosting types explained in detail → WordPress Hosting: 5 Criteria for Stability and Speed

🔢 FAQ

No. It often means the infrastructure is cloud-based. Check the pricing table to see whether resources increase automatically and whether the monthly price is fixed.

It is a geographic area where a cloud provider runs its data centers. You pick a region when you create a server. The closer the region is to your visitors, the faster the response.

You install a web server, PHP, and a database on the virtual server yourself, the same as with an unmanaged VPS. If you would rather not install them yourself, use a managed cloud VPS or managed WordPress hosting.

Set a budget alert. AWS offers AWS Budgets, which sends an email alert when spending passes an amount you set. An alert does not stop the server, so check it yourself when one arrives.

It depends on the pricing model. For a fixed monthly price, AWS Lightsail starts at $5 a month and Cloudways at $11 a month. Products where you pay for what you use, such as AWS EC2, vary every month with server size and data transfer.

There are free offers for a limited period. AWS Lightsail gives three months free on its $5, $7, and $12 monthly plans. After that, the fixed monthly price is charged.

No. Cloud hosting is the server your site runs on, while a CDN is a network that copies that server's files to locations near your visitors and delivers them from there. The two are used together, and placing a CDN such as Bunny CDN in front of the server is a common setup.

Cloud hosting and a CDN
Used together
Cloud hosting
🖥️ AWS Lightsail, etc.
The server where the website runs
→
CDN
🐰 Bunny CDN
Copies the server's files to locations near visitors and delivers them
Bunny CDN →
→
Example setup
👤 Visitors
Served from a nearby location

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