Cloud hosting and VPS hosting are terms which have often been used in place of one another, but these are actually two forms of hosting which have similarities and some key differences too. VPS hosting stands for virtual private server hosting in which there is a physical server which has been compartmentalized to produce many virtual servers. The physical server is placed within a data center and this is decided by the host. Every private server which is a virtualized environment will be free to choose its own operating system. Users will have root access and they can tweak the server settings or install new custom software to benefit their business interests.
Cloud hosting, on the other hand, is a cluster of many physical servers which will offer computing resources to the public over the Internet. These machines are all interconnected in a wide network and they own a huge resource pool from where clients can get their resources. The cloud VPS is also a virtualized environment which is housed in the cloud infrastructure. Like the VPS, the cloud will also use a virtualized environment and the type of virtualization depends largely on the hosting provider.
Although the cloud server seems to be quite the same as a VPS server there are some key distinctions. Cloud servers are in fact found to be more beneficial than traditional VPS servers. With the cloud, you can get limitless flexibility as far as resource allocation is concerned. You can provision resources on the go and there is a centralized redundant storage. So, using a cloud VPS, you can upgrade it to much higher specs within a short time and you can do this on-the-fly. So, when your website gets huge amounts of traffic, you do not need to migrate to new servers; you simply add new resources and changes happen right away. In traditional VPS the server is placed on one hypervisor and on the cloud, it can be hosted on any hypervisor. So even if a single hypervisor fails, another on standby can take over the workload. So, the cloud VPS has taken traditional VPS and made it even better. So, it is understandably costlier too.