Cloud Hosting vs. Dedicated Hosting: Which is Best for Your E-commerce Website?

Ecommerce, Internet, Marketing, Online, Technology

Over the years, e-Commerce platforms have evolved and changed the way we purchase services/products. We have drastically reduced our trips to physical stores and/or malls and prefer to shop online. With features like cash on delivery, easy returns, and 24×7 availability, these platforms have surely made our lives much easier. Having said that, e-Commerce platform owners have to bear the load of a lot of user-expectations. They need to be online 24x7x365, offer blazing fast websites, highest levels of security, and top it up with an amazing user experience. This invariably translates to countless hours spent behind managing and maintaining the platform. Hence, the web host plays a crucial role in the success of such a platform. Today, we will look at two types of hosting – Dedicated Hosting and Cloud Hosting and draw a comparison between them.

Before we begin, let’s take a quick look at the expectations of an e-Commerce platform from its host:

  • Maximum Uptimes (users should be able to shop whenever they want)
  • High-end Security (since customers input their credit card/bank details, security has to be top-notch)
  • Cost-efficiency
  • Instant Resource Scalability (to manage sudden traffic spikes)

What is Cloud Hosting and Dedicated Hosting?

In Cloud Hosting, your website is stored on multiple servers. These arrays of servers are interconnected and work in tandem and together the form the Cloud. Further, a virtualization layer separates the resources required by different instances or devices.

On the other hand, in Dedicated Hosting, your website is hosted on a web server along with all its resources. Therefore, you can select the configurations and computing power as per your requirement.

Comparing Cloud hosting and Dedicated Hosting services

Features Cloud Hosting Dedicated Hosting
Uptime In Cloud Hosting, since your website is hosted on a network of virtual servers, there is no single point of failure. Therefore, in case of a server going down, another takes places thereby ensuring maximum uptimes. In Dedicated Hosting, since your website is hosted on a single physical web server, it is a single point of failure. This means that for any reason if the server crashes, then your platform will not be available to users.
Security In Cloud Hosting, since the resources are spread across several nodes, the host needs to ensure accurate account isolation and use the latest security tools to offer a secure platform for your website. In Dedicated Hosting, since your site is stored on a single server, it offers better security than Cloud Hosting.
Resource Scalability Most e-Commerce platforms have unpredictable traffic and need a host who can instantly scale their resources in case of traffic spikes. Cloud Hosting services offer instant resource scalability. In Dedicated Hosting, resources can be scaled as per your requirement but it is not instant – it is a time-consuming process.
Costs Most Cloud Hosting plans offer basic model so that you end up paying only for resources that you need. They also offer an on-demand cost-scalability which makes them more cost-efficient than Dedicated Hosting plans. In Dedicated Hosting, you choose the resources before you start the plan. Therefore, you receive a fixed monthly bill, regardless of the resources used by you. Hence, you might end up paying for resources that you are not currently using. Overall, Dedicated Hosting can be costlier than Cloud Hosting plans.

Summing Up

While Cloud Hosting seems like a better option for your e-Commerce platform, Dedicated Hosting has its own advantages and application too. It is prudent to assess the hosting requirements of your website and look at all hosting types before you make your decision. At the end of the day, keep your end-users in mind and try to ensure that you give them the best site experience.

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