Return on Investment Calculation on Cloud Hosting in comparison of Dedicated Servers | Webwerks

Return on Investment Calculation on Cloud Hosting in comparison of Dedicated Servers


Entrepreneurs should always calculate ROI (Returns on Investment) before buying any product or services. Being informed is equal to being wise in business, because only an informed user can make prudent decisions.

One of the most important organizational decisions is related to IT infrastructure and resources. Today IT plays a key role in success of any business, big or small. Secondly, IT involves substantial funds and finances, therefore the CIOs IT managers also need to be careful while choosing web hosting provider so that the investments do not go wasted. A right server provider will greatly impact your business.

Dedicated servers and cloud hosting are two of the most popular hosting solutions preferred by businesses today. Dedicated servers are either bought or leased from a web hosting service provider. The computing resources in dedicated server are not shared with anyone other than the client, which makes the service fast and highly secured. While cloud runs on cluster of servers hosted over internet. It's also runs fast and is a reliable hosting service. Choosing between the two may be difficult for the users. However, a well planned ROI comparison of the two may help the users at arriving the right decision.

Below is the ROI comparison for Cloud hosting and dedicated servers :-


  • In the case of dedicated servers, the users need to pay a fixed monthly fees, which is based on the configuration packages with pre-decided specifications in terms of data processing speed, storage, memory etc.
  • Whereas in the case of cloud, there is no resource capping. RAM, Storage, memory, are unlimited. Also, cloud follows pay-as-you-go price model, where users just have to pay for the resources that they actually use.
  • The attributes like fees, cost and budget are instrumental in ROI calculation, but we can not ignore the performance comparison of Dedicated server and cloud hosting to enable the right decision-making.

Performance comparison of Dedicated hosting vs cloud services

  • Control: Dedicated server allows full control while control is relatively limited in cloud hosting.
  • Agility: Cloud hosting needs no hardware, hence there is hassle-free installation and quick scaling. While dedicated server involves hardware costs and scaling too is relatively slower. However, premium dedicated services at Web Werks ensure quick scaling.
  • Redundancy: Cloud hosting offers high redundancy because it is connected to multiple servers, where if one server fails, the others in the network manage the failover. Comparatively, Dedicated server is not as redundant or resilient as Cloud hosting.
  • Bandwidth and Storage: When it comes to bandwidth, disk space and SQL storage, dedicated server offer better value than Cloud hosting.

Cloud hosting is rapidly progressing and emerging as the futuristic storage and hosting solutions. You can choose between public cloud, private or hybrid cloud options depending upon your budget and operation scale. If you are an organization with huge web traffic and need highest degree of security, dedicated server is the most ideal solution.

Web Werks is among the leading Tier IV data centers to offer latest cloud services as well as dedicated hosting servers.

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