Cloud computing is the new wave in online technologies. Will you be sticking with dedicated servers or jumping onto the cloud bandwagon? The decision will depend on what your intended usage will be and what the application for such services will be.
Many people are jumping on the cloud bandwagon without really knowing what it is all about, the benefits, and the risks / problems. Before you fly away with your head in the cloud, look at the pricing. It is usually relatively cheap. The trap here is you are not comparing 2 equal services. With cloud computing you are paying only for the resources required, however with dedicated servers you will be charged the same amount each month no matter how much data you use.
Keep in mind, even if you are only paying for 12 hours of server usage in a day that it is necessarily cheaper by default. Your usage will also grow as your application of such services grows. Using a dedicated server you would need to request extra hardware to be setup for you, and then your time installing the application on it would be an additional charge.
If you have a relatively static application or web service, in terms of server resources required, such as a website or blog, a dedicated server is probably right for you. However, if you have a service that could potentially grow very large, and requires flexibility in resources and data usage, such as a Facebook application, that could grow by thousands of users a day, cloud hosting should be your preferred choice.
As you can see, price should only be a very small consideration, as you may end up paying more in future additional costs if you don’t decide on the best service in the first place. The beauty of cloud software is power and scalability, when and how you want it.
There is nothing to stop you from starting with a dedicated server and moving to cloud servers or vice versa. Its just the costs, implementation time and learning curve effort involved that will hold you back. There is no right or wrong in the decision, as the best choice will change over time. I hope that your next application will be a massive success and I wish you all the best.
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