Testing hosting since 2009. 60+ accounts across major providers. Former web dev turned full-time reviewer.
The word "cloud" in web hosting has two meanings. The first is a marketing term for shared hosting on slightly better hardware. The second is a real architectural description of hosting that runs on actual cloud infrastructure (DigitalOcean, AWS, Google Cloud, Vultr) with dedicated resources that don't get shared with other customers.
Most buyers don't know there's a difference. Here's how to tell them apart, and which one you actually need.
What "shared hosting" actually means
Shared hosting puts your site on a physical server alongside hundreds of other sites. You all share the same CPU, RAM, and disk I/O. When another site on your server gets a traffic spike, your site slows down. When the shared server is overloaded, everyone on it is overloaded.
The upside: it's cheap and simple. The host manages everything — PHP, MySQL, security patches, server maintenance. You just install WordPress and write content.
The ceiling: shared hosting handles about 25,000-50,000 monthly visitors on a well-optimized site before performance starts degrading. Traffic spikes are the real problem — 500 visitors at once can overwhelm a shared plan that handles 5,000 visitors spread across a day.
What "real" cloud hosting means
Real cloud hosting gives your site dedicated resources — a specific amount of CPU and RAM that doesn't get shared. It runs on cloud infrastructure with redundancy: multiple physical servers, automatic failover, and (in most cases) auto-scaling when traffic spikes.
Cloudways is the clearest example: you pick a server size (1GB RAM, 2GB RAM, etc.) and your site runs on a dedicated DigitalOcean, AWS, or Google Cloud instance. No other customer's site shares your CPU. If a server in the cluster fails, your site moves to another one automatically.
The difference from shared hosting is meaningful under load. In my testing with identical WordPress sites under 100 concurrent users:
| Test | Shared (SiteGround) | Cloud (Cloudways DO) |
|---|---|---|
| TTFB (normal traffic) | 220ms | 195ms |
| Full page load | 0.55s | 0.42s |
| 50 concurrent users | 1.2s avg | 0.6s avg |
| 100 concurrent users | 3.8s avg / errors | 0.9s avg |
| Recovery from spike | 2-5 min | Instant |
| Uptime (6 months) | 99.97% | 99.98% |
Testing done Feb 2026, identical WordPress 6.7 installs with WooCommerce, GTmetrix from US East, load testing via k6.
The difference at normal traffic is small. The difference at 100 concurrent users is dramatic — and the shared host was actually returning errors. That's the gap that matters for business sites.
The "fake cloud" problem
Many shared hosts now sell plans called "Cloud Hosting" that are just faster shared hosting. HostGator's Cloud plans run on SSD storage in a distributed environment, but your resources are still shared. GoDaddy's Cloud Hosting is similar.
How to tell the difference: look for whether the host specifies dedicated CPU and RAM. "1 CPU, 1GB RAM" means dedicated. "Unlimited bandwidth" or "unmetered storage" with no CPU/RAM specs means shared.
| Host | What they call it | Resources | Real type |
|---|---|---|---|
| HostGator | Cloud Hosting ($4.95/mo) | Shared (unspecified) | Shared hosting on SSDs |
| GoDaddy | Cloud Hosting ($7.99/mo) | Shared (unspecified) | Shared hosting on cloud HW |
| SiteGround | Shared Hosting ($2.99/mo) | Shared on Google Cloud | Shared hosting on GCP infra |
| Cloudways | Cloud Hosting ($14/mo) | 1 CPU, 1GB RAM dedicated | Real cloud — DigitalOcean/AWS/GCP |
| Kinsta | Managed WordPress ($35/mo) | Dedicated containers | Real cloud — Google Cloud |
Which one do you need?
Personal blog or portfolio
Shared hostingUnder 25K monthly visitors, no revenue at stake. InterServer at $2.50/mo or SiteGround at $2.99/mo handles this without issue.
Small business website (no store)
Shared hostingMost small business sites stay well under the shared hosting ceiling. SiteGround GrowBig for good performance and support.
WooCommerce or membership site
Cloud hostingCheckout failures during traffic spikes are expensive. Cloudways at $14/mo is the minimum I recommend for stores. WP Engine for established stores.
Expecting traffic spikes (ads, press, social)
Cloud hostingAuto-scaling handles spikes. Shared hosting doesn't — your site returns errors when traffic exceeds capacity.
Growing site already hitting shared hosting limits
Cloud hostingSigns: slow TTFB above 500ms on a cached page, errors during traffic spikes, support blaming "high usage." Time to move to Cloudways.