Quite often customers / friends ask us about the differences between dedicated servers and cloud computing and which is best for them. We have tried to list a few based on the criteria that are considered when a hardware is designed.
Resources:
Dedicated servers allows you to own the entire hardware and software resource to you. This means, the entire memory, cpu is allotted to you. Once a hardware configuration is set, it is not possible to change the configuration on the fly. For example, to upgrade the memory or cpu resource on the fly is not possible in a dedicated server.
In a cloud environment, only a part of the hardware is allotted to you. The entire hardware in a cloud is virtualized and allotted to each customer. The cloud is elastic. It is possible to change the memory or other resources on the fly without affecting the web application.
Availability & Performance:
If a dedicated server and an instance of cloud is compared, there is no difference in availability of the resources. But the amount of time taken to bring a server back if it faces as hardware failure or OS problem is much more than to bring back cloud instances in few minutes. Such a high availability makes cloud more formidable than dedicated servers. But lot of work need to be done in this area cases of cloud instances vanishing just like that were common in the past. What is the use to getting a new instance back without the application that we run in it.
Performance wise, cloud is more stable in theory. It should offer a robust high availability hosting infrastructure when compared to dedicated servers. But when it comes highly resource consuming applications like erp, database intensive portals and applications, dedicated servers score higher than cloud instances. Because in a dedicated server the entire server I/O is allotted to you. Unlike in cloud where multiple instances will compete for this same resource.
Compliance:
Dedicated servers score higher in compliance. This is because the entire hardware / software is allotted one user. It is not shared unlike in cloud hosting. Many compliances such as PCI require the data to be hosted in a dedicated environment. There is a new range hosting solutions being delivered now known as hybrid hosting. In this the application layer or the business process layer is hosting in cloud environment and databases and privacy related applications are hosted in dedicated servers. This way one can harness the stability of a cloud and high resource availability of a dedicated server.
Security & Control Panel:
Theoretically there should be no difference between cloud and dedicated servers as far as security is concerned. But cloud is in early stages now. We are not fully aware of how a user can affect the other. Apart from this, there is a practical issue with respect to cloud. Most of the cloud hosting providers do not provide any standard control panel like cpanel or plesk [ Some providers allow you to install it by yourself ]. These control panels come bundled with range of security softwares and also updates or alerts users about possible vulnerabilities. This is not available in a cloud environment. Hence a system admin who manages cloud instances should keep track of upgrades and security patches available for different services like web server, dns, database etc.
Is “ what you pay is for what you use” true ?
True, but not true. Unless you run a huge social networking site like You tube, Myspace etc, there is not going to be unexpected spurt in traffic or resource usage. Then there is no point to have elasticity in your hardware configuration. This means the pricing of both cloud and dedicated server will remain the same unless you run a portal like these. If you are running an erp or web application designed for your organization or an ecommerce website dedicated servers are the best choice. If you are running software as service, streaming, portals etc, then cloud instances are the best choice. What about the pricing ? - If you calculate all the cost involved, there will be little difference between the two.