Public Cloud (VPS) Hosting vs. Shared Web Hosting
Shared hosting is heavily commoditized and cheap. It is basically a folder on a Linux server facing the Internet, and you can upload pages and images to make a static website. Controlling the dynamic options of a Web server, are rarely offered by this type of web hosting. Industry leaders in shared hosting are 1&1 and GoDaddy.
Public cloud is the middle ground where you are not quite ready to purchase and manage your own servers, and cloud service providers allow you to rent a VPS (virtual private server) to run e-commerce, blogs, CMS (content management system) or various dynamic custom websites. Finally, once you have an IT staff it makes sense for co-location of your own dedicated servers at the data center. Most large companies own their own data centers, and therefore would have their own dedicated servers. Private clouds will work best in a large setting, maximize on hardware purchases and make it easier to deliver a high quality service to internal customers.
Cloud Rates, Fees & Pricing: Internet City Cloud Computing