Private Cloud or Dedicated Server – Which is Best for You?

March 26, 2023 / Hosting Server


Choosing the right infrastructure for your business can be a challenge, especially if you are unfamiliar with how different types of systems work or their benefits. In this post, we look at two different types of infrastructure, private cloud and dedicated servers, to outline their key similarities and differences.

What are dedicated servers and private clouds?

A dedicated server is a powerful computer that you can use to host your applications and store data. You can buy these and install them at your premises, or you can lease them from a vendor like eukhost, who will host them for you at their data centre. The advantages of having your server hosted are that there is no significant capital expenditure to purchase the server and if you choose a managed solution, the tasks of server management (updating and patching the operating system, for example) will be taken care of by the host. One of the great things about a dedicated server is that you can choose your own specification, ensuring your hardware has all the CPU, RAM and storage you require.

As the name suggests, a private cloud is where you host your data and applications in the cloud, using the services of a cloud provider, like eukhost. Private cloud is a specialist type of cloud hosting in that, unlike public cloud, the hardware on which your virtual servers run is not shared by other users, making it ideal for businesses that need to comply with strict data protection regulations.  

Similarities and differences

Both a private cloud and a dedicated server can be used for doing the same kinds of workloads. You can use them to store and process data and run your applications. The key differences are in how they perform and operate. Here we look at what these are.

  • Security
    Both a dedicated server and a private cloud are single-tenancy computing environments. This means that the hardware on which they operate is used solely by your company. This makes it impossible for your system and data to be affected by security issues from other users which, although rare, has the potential to happen in solutions like shared hosting or the public cloud. Organisations and businesses that keep sensitive data, such as healthcare, government and law enforcement agencies, often prefer to store data on dedicated servers or the private cloud to improve compliance with regulations like GDPR.
  • Performance
    Service providers invest heavily in the latest technologies so you should expect excellent performance from both a private cloud and a dedicated server. The key difference is that you have the ability to build a dedicated server to your desired specification. This makes it the best choice if you need infrastructure that is capable of running CPU-intensive processes at speed. 
  • Uptime
    While dedicated servers have the edge with performance, the private cloud has the upper hand with availability. The reason for this is that updating and patching a dedicated server means it may need rebooting and this will temporarily take it offline. If there is a hardware issue, it would also need to go offline for repair. As a private cloud is a virtual environment, your system can be instantly transferred to another physical machine during such actions, preventing any downtime at all. As a result, private and public cloud solutions offer 100% uptime guarantees, making them ideal for critical applications that need to be permanently available.
  • Scalability
    While dedicated servers come with lots of storage, CPU and RAM, scaling up isn’t that easy. You will either need to upgrade the server with new hardware or purchase an additional server to cope with excess demands. It’s a process that can be slow and expensive.

    The advantage that a private cloud has over a dedicated server is that additional resources can be had on demand. One click of a button and all the additional storage and processing power you need is at your fingertips. Even better, this is charged for on a pay-per-use basis, so that you only pay for the additional resources you use and can scale down at any time you do not need them. This makes it highly cost-effective while giving companies the agility to scale up quickly to cope with unexpected needs.

  • Cost-effectiveness
    Compared to buying a dedicated server outright, a hosted dedicated server solution offers a far more manageable way to pay for your hardware. What’s more, as there is a wide choice of specifications and the option to create your own server, there are different solutions to suit different budgets.

    A private cloud, similarly, uses your host’s infrastructure and is also charged for on a monthly basis. It also benefits from highly cost-effective scalability.

Dive deeper into server choices with our comparison of Dedicated Versus Virtual Server – Which is Best? to make an informed decision.


Dedicated servers and private clouds are both ideal solutions for businesses and organisations that prefer to keep their applications and data in single-tenancy environments. With regard to which is best for you, that depends on whether scalability and availability take priority over speed and performance. If it is the former, then a private cloud is the best option and if the latter, then a dedicated server. However, there is also the option to create a hybrid cloud that uses public and private clouds and dedicated servers working together. For more information about our dedicated server and cloud solutions, visit our homepage.

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  • Arjun Shinde

    I'm an experienced digital marketer with expertise in planning, SEO, SEM, and social media. I'm good at creating engaging content and optimising campaigns for a strong online presence.

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