One of the most interesting discussions in the workplace for many in IT is what the company should focus on when it adds more hosting capacity for its next-gen applications and services.
Of course there is a lot of leeway in either direction because there are definite pluses and minuses on either side.
Here are some points that often form the backbone of any VPS vs Cloud type of discussion for stakeholders:
VPS or virtual private servers are preferable for smaller implementations of web-based services: This can be true because many people will point out that a dedicated server hosting account would be a better option if you plan to do a huge implementation that will take up a lot of space. On the other hand, there are some pretty robust VPS options out there so check before you cross them off as an option.
Cloud Services are more expensive overall than VPS services: It definitely depends upon what you are doing. If you are factoring in the extra application development time for the stack that will be run, it will likely add some overhead on the Cloud side. Yet in most cases, you would probably view the stack being run as a separate cost from the actual infrastructure required to power it. Looking at things from that perspective, you will definitely find that cloud services are typically more expensive for small implementations, but tend to scale well so that costs drop quickly once any significant size has been reached.
VPS vs Cloud is really a war between those who wish to limit company services and those who would like everything ported to a data center: This can be a valid point as many small to large companies have actually ported most of their applications over to a third party vendor in the cloud when they have been cloud proponents. The onsite maintenance costs have therefore dropped to almost zero in many places and security is now largely handled from a macro perspective by their cloud vendor. On the VPS side, most proponents of using a VPS are not trying to limit company services as much as they are trying to limit the amount of company services that are administered on a third-party site without complete control. Depending on the sensitivity of the data in your applications and the actual need for them to be portable to everyone, choosing not to port everything over to be served from another data center can be a very sensible decision.