Here is the distiction between the duo on the basis of - Flexibility, Scalability and Security
Cloud - Enables an organization to react faster to business needs with greater operational efficiency.
Dedicated Server - Lack of agility becomes a roadblock for businesses with fluctuating resource demands
Cloud - Allows for Vertical & Horizontal scaling of resources without hampering performance. Scaling happens on the fly without human intervention, downtime or reboot.
Dedicated Server - Limited scalability options. It requires proper sizing and planning to achieve scalability. This may thus result in investment of unused resources. Downtime and human intervention is mandatory for scaling
Cloud - Offers Virtual firewall Options for advanced security & supported like as VPN, DMZ, intrusion detection, anti-malware and DDoS protection
Dedicated Server - Excellent (Fortigate, Cisco and Cyberoam are few firewall options) Options for advanced security. Supported such as VPN, DMZ, intrusion detection, anti-malware and DDoS protection
Very little time is required to restore from a backup in case of cloud. Also multiple instances can be created for high availability within short duration without affecting the master
For dedicated servers, the OS or other software needs re-installation & restoration. Replication is time consuming due to installation and migration of programs and data
Cloud is a best solution for apps that require high availability owing to the availability of resource pool and quick snap shot based replication
However in Dedicated servers a single node failure can cause disaster. Load balancing and clustering is required for higher availability
Cloud needs no need for RAID configuration whereas RAID can be configured for Dedicated Servers