Cloud servers can be configured to provide levels of performance, security and control similar to those of a dedicated server. But instead of being hosted on physical hardware that’s solely used by you, they reside in a shared “virtualized” environment that’s managed by your cloud hosting provider. You benefit from the economies of scale of sharing hardware with other customers. And, you only pay for the exact amount of server space used.
Cloud servers also allow you to scale resources up or down, depending on demand, so that you're not paying for idle infrastructure costs when demand is low.
A dedicated server is a physical server that is purchased or rented entirely for your own business needs. Dedicated servers are typically used by large businesses and organizations that require exceptionally high levels of data security, or organizations that have steady, high demands for server capacity.
With dedicated servers, businesses still need the IT capacity and expertise to manage ongoing maintenance, patches and upgrades. Businesses using I/O-heavy applications, such as databases and big data platforms, find significant value in bare metal dedicated hardware.