What is the difference between cloud servers and hosted servers?

A hosted server is a dedicated physical server provisioned exclusively for your organization — typically located in a data center and accessible over a network connection. A cloud server is a virtualized environment running on shared infrastructure, where computing resources are allocated dynamically based on demand rather than tied to specific physical hardware.

The practical differences come down to cost structure, flexibility, and control. Hosted environments typically offer more predictable performance since you are not sharing physical resources with other tenants, but they cost more and require more lead time to scale. Cloud environments are generally more cost-effective at lower utilization levels and can scale resources on demand, but performance can be less predictable in some configurations.

For financial institutions evaluating server options for surveillance systems, access control, or other on-premise technology, the choice depends on data retention requirements, IT staff capacity, and budget. CSG can advise on the right server approach for your specific technology stack and help size the infrastructure appropriately for your retention and performance requirements.