There are many articles listing the advantages of cloud hosting over traditional hosting, such as more flexible and security. However, is there any opposite? Surely if cloud hosting is dominantly advantage, then traditional hosting companies will cease, right?
Cloud hosting has replaced a large portion of the hosting market. This site stats say that the Amazon and Google clouds host about 7% of sites. Cloud hosting is especially effective for large sites that need multiple servers, so the cloud hosting market share by dollars is much greater than the share by sites.
Other big hosting companies have some benefits and unique selling points compared to cloud hosting:
- Shared hosting is cheaper than even the cheapest cloud hosting. Running many sites on the same web server is far cheaper than running each site on its own virtual machine with its own running web server and allocated memory. The majority of small sites can get a better deal with shared hosting than cloud hosting.
- Managed hosting is hands-off compared to cloud hosting. Companies offer white glove web hosting service that you can't get by using cloud hosting yourself. They will install web software, run your server, manage security, and apply upgrades without you ever having to worry about any of that.
- Many users want point and click, drag and drop website building. Some of the big hosts specialize in catering to users that want to get started without a big learning curve.
- At some very large size, it could be cheaper to build out your own infrastructure rather than use cloud services.
- Using virtualization (as is done in VPS and cloud services) introduces security vulnerabilities such as VM escape vulnerabilities. "Meltdown" and "Spectre" CPU vulnerabilities required major patches to cloud infrastructure.
Cloud hosting has made the biggest inroads in replacing virtual private server (VPS) and dedicated server hosting where you contact a host and have them set up a bare server for you. Cloud hosting has automated the setup process for that and provided a host of auxiliary services that are painful or expensive to set up with traditional VPS and dedicated server hosts.