Cloud-based or Cloud-hosted- Which one should you prefer?

Dec 23,2021 by Manoj Yadav

Many people confuse the terms cloud-based and cloud-hosted applications. People frequently refer to them as synonymous terms, which is inaccurate. To make an informed decision as per your business needs, it is pivotal to understand the differences between a variety of Cloud hosting models and their impacts on an application. As per experts, cloud-based solutions will rule the digital world by 2022. Cisco predicts that over 94% of workloads and computing processes will take place on the cloud. In this article, we will explain the concepts of Cloud-based and Cloud-hosted applications and which one is the best for your business. 

What is a Cloud-based solution? 

Cloud-based or cloud-native applications are specifically built to work with cloud infrastructures (such as Amazon Web Services), and they are delivered as software-as-a-service (SaaS). Cloud-based apps use components that are stored and run online, and all or part of the processes are performed in the cloud. A cloud-based application is a set of data and processing logic stored as code and runs on a remote server. The user interacts with it through a mobile application or a browser, and API handles the data processing.

Moreover, the Cloud-based solution comes with numerous benefits:

  1. There is no need of installing any hardware or software, which shortens the implementation time also. The customer gets access without any delay. 
  1. Since it has a shared codebase, it leads to faster and quicker upgrades. 
  1. The growth of computing resources is seamless, dynamic, and based on usage and/or users. 

Top benefits of Cloud-based Solution 

As per Gartner’s research study from 2019, 60% of business owners are expected2 to rely on cloud services for hosting data by 2022. Businesses are embracing cloud technology for several reasons, including increased productivity. Despite the benefit it offers, many business owners are still hesitant about using cloud-based solutions. 

Cloud-based solutions do come with challenges, but there are several advantages of using them as well. 

1. Cost-effectiveness

With cloud service providers, you can pay per usage of the cloud infrastructure. This enables you to scale up and down cloud space to meet changing business needs. In addition, you will not pay any fees for services that you are not using.

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When comparing the cost of initial implementation with the benefits you get from this investment, it is clear that the benefits outweigh the costs. Furthermore, the cloud-based software reduces the infrastructure maintenance cost as the provider takes care of this.

In addition to this, you do not need to invest in hardware to safeguard your business data. Cloud computing services provide data security. Thus, this is a cost-efficient solution able to help organizations save on the upfront costs of IT infrastructure.

2. Enhanced data security 

There are many reasons why businesses hesitate to move to cloud computing. One of them is that they consider cyber-crimes such a significant threat to their security. On the other hand, the overall security of data is enhanced with cloud-based software. Several methods are used by cloud service providers to guarantee data security. These include following IT security guidelines, encrypting data while being transferred, single sign-on, and role-based access control.

3. Regular automatic software updates

Software that runs on the cloud gets updated automatically by the service provider, saving time for your IT department and reducing outside consulting expenses. The advantage of this approach over purchasing a software product is that you are not obliged to take care of maintenance activities. You can instead allocate your time to other strategic initiatives. With cloud applications, you have far more flexibility than local applications. If you change your IT infrastructure, cloud services can quickly accommodate the change. You do not have to worry about critical IT issues that arise with local applications. 

4. Scalability

It is easy to scale up and down cloud-based applications, which means you can adjust requirements for headcount, customers, services, or production according to the needs of your business. It is the most significant advantage for fast-growing companies. On-premises systems may take months to scale up and down depending on the company’s needs. By contrast, you can adjust cloud-based resources quickly to meet a business’s demands. 

5. Data Insights 

Data insights play an important role in making business decisions faster thanks to cloud-based software. As the world moves towards digital transformation, data insights help businesses make better decisions more quickly. You will be able to create custom reports based on various types of data. Additionally, you can give the management team access to these reports for deeper insight. In this way, you will gain a competitive advantage as the data insights become faster than ever. 

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In addition to API solutions that can be implemented with your existing cloud-based application, many solutions provide real-time data insights that can be used in helping you understand your customer journey and then adapt your products/services accordingly.

What is a Cloud-hosted Solution? 

The cloud-hosted environment is typically dedicated servers located at the customer’s place that host on-premise software. These are effectively on-premise applications that can be accessed remotely. While cloud-hosted applications are generally not designed for multi-tenancy, they can present several challenges, as compared to cloud-based applications:

  1. In the beginning, there is a long implementation period as servers need configurations, software installation, and customization. 
  1. Upgrades are also manual and dependent on the server, causing customers to stay with older versions of the software while waiting for the vendor.
  1. Because software is on dedicated servers by the vendors, an expansion may require purchasing and setting up additional hardware (servers).

Top benefits of Cloud-hosted Solution

1. Flexible Pricing Structure

Most hosting packages charge you a monthly fee regardless of whether or not you use the full capacity of the server. With cloud hosting India, you only pay for what you use. It is ideal if you are expecting a post to go viral or have un usually high traffic to your site. Moreover, you can easily scale your resources and remove the resources once the traffic goes back to the initial stage during a traffic surge. 

With cloud hosting, you don’t have to pay hefty prices for the services. You will be only paying for the resources you are using. 

2. High Uptime 

If your company uses traditional hosting, the uptime of your website depends upon the server environment. If the server goes offline, so does your website. It is unless you utilize a Content Delivery Network. CDN helps to reduce the overall downtime of your website.

As cloud hosting India makes use of multiple servers simultaneously, you have a high uptime built into its structure. Whenever one goes down or experiences technical issues, you will be able to transfer your site to another server. 

3. No Server hardware Issues

When dealing with cloud hosting, you don’t have to worry about any physical server failures, hackings, or system overloads. If a physical server is experiencing issues, you can simply use the physical resources of another server. It means there will be no downtime when you choose cloud hosting. 

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4. Improved Speed & Performance 

You can access most cloud servers with blazingly fast speeds. In addition to the ability to easily increase your site’s capacity,  Window cloud hosting also enables load balancing between different server environments, thereby putting less strain on a single server.

You should also look for a cloud host that has multiple caching layers, high-performance hardware, and low-density servers, which will contribute to the speed of your site

5. Redundant Server Environment 

In a typical hosting arrangement, your site will be on a single server, so if anything happens to that server, then your site will go down and you will not be able to restart it until you fix the server. 

Having redundancy will allow you to have a site backup that will replace your live website in seconds. However, not all redundancy is the same. With cloud hosting, you’ll have a live version of your site that your hosting company can immediately load.

Cloud hosting India is a great option for those who need scalability, control, and performance at an affordable price. It’s not for every type of website owner, but for those who need them, it makes sense.


When using cloud-based applications, you can concentrate on your business instead of the software/IT infrastructure. This allows you to make efficient use of your IT workforce to concentrate on creating value for your company. But to get the most out of your hosting solutions, you must assess your business requirements and pick which hosting solution is the best to meet the requirements. 

Also, you must pick the right hosting solution provider. Not all hosting providers offer you the same services. So make sure you pick the hosting provider who offers you the desired solution and best meets your business requirements. Go4hosting is one such Cloud hosting provider that offers you customized plans to perfectly cater to your needs. For any hosting concern or query, you can contact our cloud hosting expert at [email protected]

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