Do you know why shared hosting is still around in 2016? Because in most cases its cheaper for users and they want something as simple as possible.
so what are example of cloud hosting? such as amazon web service, windows azure and google cloud platform. these are cloud services that charges you based on how much query or data that you accessed from them. not like vps hosting that charges you per month. that’s why cloud hosting is very expensive due to redudancy.
Cloud services really have little to no benefit for most websites, small companies and individual users. There are exceptions, for example if you need to develop some things for a few hours or test something, its cheaper to pay just for the hours of usage vs hiring a minimum of 1 month service. But usually for most people there is little to no use.
Just think about it, if you need to run a regular site that will never be shut down, you need the service to work every hour of every day. It’s a constant service, not a temporary service. Cloud provides no benefit in such setups, in particular if you don’t need to scale every single day down or up or need massive computing resources.
Most users can predict their grow, they don’t need to scale per hour or day, or even months. For a service provider this is also more cost effective and this is why they usually can provide better pricing.
If a user hires a $100 month service, you know that he will pay $100 every month (you can predict your costs), but in a cloud service you can’t which makes it for a very unsustainable model for smaller hosting companies unless they have big pockets where they can afford to prepay everything upfront. Yet, you still need to have the servers, network, etc, even if the user only uses 5 hours and only paid a few cents.
The cloud benefit only makes sense if the company infrastructure is huge and the customer is also huge such as spotify or khanacademy that has millions of users. Running idle services still cost money, so a provider in order to really make money with cloud services requires those servers and resources on constant use, so if that 5 hour user stops the services, another user can start using the services immediately and you have no idle time. That only happens if the company is huge and has a lot of customers, like Amazon.
And the same is true for a company. Lets make one example. You are a company that develops a software the needs to be compiled against some specific systems and you need to do this fast and for thousands of customers every week. You can go to Amazon or other cloud providers, spin up 100 servers, compile everything in 30 minutes and shut them down.
Now, your cost saving here are huge. In the past that company would had to have those servers running or own them, even if they only need to use them for 30 minutes a week. Or they probably had 10 servers instead and it took them 300 minutes for the same job. Time is money for most companies so if they can do something faster and quicker, that is a cost saving factor.
You see the difference here?
The customer can only pay for 30 minutes for all those resources. Companies like Netflix or big data services or rendering movie maker that needs fast amount computing resources and anyone that needs huge computing resources can benefit from this. And this is exactly where companies like Amazon are making their money. They are not making money from someone paying $100 or even $1000 a month but hundreds of thousands of dollars a month.
That does not mean that you can’t setup an email server, or a web server or just one website with Amazon. Of course you can, but there is almost little to no benefit from doing so, not for them and not for you.
For most individual and small companies, cloud makes no sense at all. In most cases it will be more expensive.
There are of course users that need exactly this. Developers, testing, etc, but they benefit from the metered billing model rather than the infrastructure. Those type of customers only want to lower their bills by just paying what they use instead of monthly contracts.