The cloud is literally omnipresent. Whatever we do today, even in our daily lives, is touched by the cloud – whether it’s cloud-based email, streaming apps for entertainment, social media platforms, or online learning platforms. Over 90% of global companies now use cloud in some form, underscoring its widespread adoption across the business landscape. The global cloud computing market is growing by leaps and bounds. The market was valued at $752.4 billion in 2024, with forecasts indicating a robust CAGR of over 20%, reaching over $2,390 billion by 20301.
The cloud is no longer optional; it’s becoming the default foundation for modern IT. As more and more businesses move to the cloud, cloud hosting has become a big part of the it. So, what is cloud hosting? Think of cloud hosting this way – you can book hotel rooms when you need them instead of owning an apartment. Traditional hosting is like owning a house, suitable if your needs are fixed and predictable. Cloud hosting is more like renting hotel rooms as required, with benefits like scalability, flexibility, and minimal maintenance requirements.
At its core, cloud hosting refers to hosting websites, applications, or services on virtual servers that draw resources from a network of physical servers located in data centres around the world. Cloud hosting offers flexibility in terms of resource scaling based on real time demand, eliminating the need to invest in expensive infrastructure. In addition, it also improves accessibility, enabling teams to collaborate from anywhere while ensuring high availability and security. For organisations looking to innovate quickly and remain agile, cloud hosting provides a robust, cost-effective foundation.
There are primarily three types of cloud hosting: public, private, and hybrid.
Public cloud is the most common type of cloud hosting and most widely accepted across businesses. Services are provided over the internet and can be accessed by multiple users simultaneously. The public cloud is a great option for small to mid-sized companies that do not want to invest heavily in infrastructure.
Private cloud involves dedicated cloud infrastructure exclusively for one organisation. It offers more control and security – often used by banks, insurance companies, and governments.
Hybrid cloud, as the name suggests, is a blend of both public and private. Organisations typically use private cloud for sensitive, compliance mandated applications, workloads, or data, while non-critical workloads are hosted on the public cloud. This model is also beneficial for highly regulated environments and businesses such as finance or healthcare.
Traditional hosting and cloud hosting differ in terms of resource, scale, and the support modern business needs. With traditional hosting such as shared or dedicated hosting, the website or application runs on a single physical server in a specific location. A set amount of storage, bandwidth, and computing capacity is assigned. If traffic spikes or the server crashes, performance suffers, and scaling up can be slow and expensive. On the other hand, cloud hosting uses a network of interconnected servers to distribute resources dynamically. This means scaling up or down can be done instantly and on demand, without any hardware changes. Thus, organisations get flexibility, pay only for what they use, and can access services from anywhere. Cloud hosting also offers better redundancy: if one server fails, another picks up the slack, thereby reducing downtime. Security and updates are managed by the provider, freeing up internal IT teams. In summary, while traditional hosting is adequate for basic or static websites, cloud hosting is better suited to organisations that need high performance, flexibility, and dependable scalability. It reflects the shift from owning infrastructure to accessing it as a service.
The cloud has become an increasingly compelling choice for businesses of all sizes. Gartner has predicted that end user spending on public cloud services will grow to over $723 billion in 2025 from close to $596 billion in 20242. Yet, like many other things in the cloud, there are some inherent pros and cons to cloud hosting. Let’s explore them.
This is perhaps the biggest advantage of cloud hosting – the ability to scale resources automatically. Imagine the requirements of a retail company during the festive season or a company that needs to host a webinar for a few hundred participants. With cloud hosting, these companies can adjust their computing resources such as storage, bandwidth, and processing power, based on real-time demand. This flexibility also means companies only pay for what they use, avoiding the cost of over-provisioning. For a start-up or a small business, it eliminates the challenges of traditional infrastructure and supports smooth, uninterrupted expansion.
Traditionally, businesses had to invest heavily in servers, cooling, networking equipment, and skilled IT staff. These were capital expenditures (CapEx), often straining early-stage or growing firms. In contrast, cloud hosting is typically an operational expense (OpEx) model. Companies pay for what they use, be it CPU hours, storage, or bandwidth. This shift allows companies to better manage cash flow, innovate faster, and grow more sustainably.
Cloud platforms are inherently designed for mobility. Whether teams are spread across multiple locations, or in case of the hybrid work models post the pandemic, employees can securely access systems through the internet. Hence cloud hosting has proven vital in enabling remote work, distributed development teams, and global expansion without brick-and-mortar limitations.
It’s a widespread belief that cloud hosting is less secure than having your own servers. In reality, cloud providers are acutely aware of these requirements, and hence invest significantly in security infrastructure. This includes multi-layered encryption, identity and access controls, DDoS protection, real-time monitoring, and regular updates and patches. For instance, in India, cloud providers are increasingly aligning with the Indian government’s Digital Personal Data Protection Act, 2023.
Traditional on-premise setups are vulnerable to outages, hardware failures, and natural disasters. In contrast, cloud hosting ensures redundancy. Data is backed up across multiple geographical regions, enabling business continuity.
Cloud platforms are typically not just about storage and compute power. They include advanced services such as: machine learning APIs, big data analytics tools, content delivery networks (CDNs), serverless functions, and IoT integration. Plus, most cloud providers are also heavily utilising artificial to automate tasks, optimise resource allocation, improve security, and enable faster decision-making.
A major drawback of cloud hosting is vendor lock-in, where businesses become dependent on a single cloud provider’s platform, tools, and infrastructure. Switching vendors can be challenging and costly due to compatibility issues or data migration challenges. As a result, organisations may face limited flexibility and negotiating power over time.
While the cloud seems cheap upfront, costs can escalate. Cost optimisation on cloud expenses is one of the challenges in cloud management. Flexera’s State of the Cloud 2025 report indicates that for 84% of the respondents, managing cloud spend was a top concern3. Data egress charges, bandwidth, and scaling add-ons can lead to sudden increases in billing if not monitored closely.
Governments around the world are becoming increasingly vigilant about data privacy and security. Regulations such as the GDPR in Europe, which has been in force for several years, and India’s evolving data protection framework — including the Digital Personal Data Protection Act, 2023 — impose strict rules on where and how data can be stored and shared. As a result, organisations must be more aware and compliant with these regulatory requirements.
Looking ahead, cloud hosting is poised to play an even more transformative role in shaping the future of digital infrastructure. As technologies such as AI, edge computing, IoT, and so on mature, the cloud will become the backbone supporting next-generation innovation and agility. For organisations seeking to stay competitive, scalable, and resilient in a fast-evolving digital landscape, cloud hosting is no longer an option, but a strategic imperative. A careful evaluation of the pros and cons, and building a cloud roadmap that evolves with the times will decide the success for organisations.