For the longest time, if you wanted to have your own dedicated server then you had to pay for, or rent, a whole box and if there was empty space on that box, you were paying for it. Then came along cloud computing. You no longer have to pay for empty space.
Of course, you no longer have to have a dedicated server either.
One of the great advantages to cloud hosting is that you can rent the space that you need and pay for the space you need as you go along. This is very helpful to companies who scale quickly and need the flexibility of renting server space as they need it. Get rid of the dedicated server and rent space on a co-hosted server, or virtual server.
Let’s say you are running your own hosting company for local businesses. You have 15 clients with 100GB of storage space each. You calculate that you need 1,500GB, or 1.5 terabytes (TB).
If you can rent 1 server of 1 TB for less than you can rent 1,000 separate GB, then you can rent 1 full server and 1/2 of another server to service your current clients. But instead of renting two full servers, you pay for the 1 full server and 500 additional GB. This will save you money in the long run. Thanks to cloud computing, it’s possible.