Table of contents
What we meanSecurity risksStronger baseline securityUse casesWhat cloud does wellCompliance and controlNext stepsAdditional resources
Get the industry’s best dedicated server hosting◦ 99.99% uptime
◦ Security rich
◦ Built to spec
Explore options

Dedicated Server → vs Cloud Security

Cloud vs dedicated servers: security

Security is one of the biggest deciding factors when choosing between cloud hosting and dedicated servers. While both offer ways to protect your data, their approach to security—and how much control you have—differs drastically. If you’re running workloads that involve sensitive information or strict compliance, the differences matter.

Let’s break down how security works in cloud and dedicated environments, what risks are involved, and when one might be better than the other.

Get premium dedicated server hosting

Business-class dedicated hosting provides unrivaled power, top server speeds, and air-tight security.

Explore dedicated hosting

What we mean by “cloud” vs “dedicated server”

Before comparing security, it helps to clarify the difference between cloud and dedicated servers.

Cloud hosting typically refers to virtual servers (also called virtual machines or instances) that are hosted in a public cloud environment like AWS, Google Cloud, or Azure. You rent slices of a physical server—sharing resources with other users—but only see and control your virtual portion.

Dedicated hosting, on the other hand, gives you an entire physical machine that’s reserved for your exclusive use. You still access it remotely, but no other customers share the server. You can install whatever software or operating system you like, manage access yourself, and know exactly what’s running on your machine.

Cloud vs dedicated server: security overview

Feature / ConcernCloud Server HostingDedicated Server Hosting
Environment TypeVirtualized, shared (multi-tenant)Physical, private (single-tenant)
Security ControlShared responsibility with providerFull control over OS, firewall, and services
Infrastructure VisibilityLimited; depends on provider toolsFull visibility into hardware and network activity
Compliance ReadinessCan be compliant, but requires complex configurationEasier to meet HIPAA, PCI-DSS, and other security standards
IsolationSoftware-based isolation (via hypervisor)Physical isolation from other customers
Risk of Noisy NeighborsHigher; shared resource pool and attack surfaceNone; your organization is the only tenant
Data Sovereignty ControlVaries by provider and regionYou choose the exact location and facility
Security UpdatesManaged by provider; schedule may not be flexibleYou choose when and how updates are applied
Best ForAgile, low-risk, or short-term workloadsLong-term, security-critical, and compliance-heavy applications

Security risks in cloud server hosting

Cloud hosting has grown in popularity because it’s flexible, scalable, and cost-effective—but it also introduces new security challenges that beginners often overlook.

Here’s what to watch out for in cloud environments:

  • Shared infrastructure: Your virtual server runs on physical hardware that’s shared with other customers. If another tenant’s workload is compromised or misconfigured, it can open security vulnerabilities on the hypervisor (the software managing the virtual machines).
  • Larger attack surface: Cloud servers often have public IP addresses, are accessible through cloud provider dashboards, and include APIs for automation—all of which can become points of attack if not locked down.
  • Complex compliance: While many cloud platforms are technically HIPAA- or PCI-ready, they require precise configuration. Responsibility is shared. You manage security for your application and OS, while the cloud provider secures the hardware and network. Misunderstanding this shared responsibility model can lead to costly gaps.
  • Limited visibility and control: You might not get direct access to firewall logs, packet-level inspection, or full audit trails unless you upgrade to enterprise tiers or use third-party tools.
  • Opaque updates and maintenance: Cloud providers often perform patches or maintenance without advance notice or your direct input. While this keeps things secure in theory, it also means you’re trusting a third party with your uptime and system integrity.

These issues can add up. In the Uptime Institute’s 2024 global survey:

  • 60% of IT operators said data security concerns keep them from hosting mission-critical workloads in public cloud. 
  • 44% cited regulatory compliance requirements as a barrier to cloud hosting.

Why dedicated servers offer stronger baseline security

Dedicated servers provide a level of control and predictability that’s hard to match in the cloud. That means a lot when security is your top priority.

Here’s how dedicated hosting improves security from the start:

  • True isolation: The server is yours and yours alone. No other tenants share resources. This eliminates risks of noisy neighbors, hypervisor attacks, or privilege escalation from nearby virtual machines.
  • Full OS and root access: You have total control over the software stack, firewall configuration, and access permissions. You can restrict users, services, and/or ports.
  • Simpler compliance: Healthcare and financial institutions often prefer dedicated hosting because it’s easier to align with frameworks like HIPAA, PCI-DSS, and GDPR. The physical isolation and audit transparency make security controls more predictable.
  • Easier monitoring: You can install any security tools you like—including file integrity monitors, intrusion detection systems, custom log aggregators, etc.—without needing permission or integration with a cloud dashboard.
  • Consistent hardware behavior: No virtualization overhead means fewer unknowns, especially when debugging or validating system-level behavior under security audits.

Dedicated environments make it easier to prove to regulators exactly what’s in place, who has access, and how data is protected (without relying on third-party abstractions).

Use cases where dedicated servers are the safer choice

Dedicated hosting isn’t just about peace of mind. It’s often required when the stakes are high.

Some example use cases include:

  • Healthcare and life sciences: HIPAA compliance requires strict controls on data access, storage, and transmission. A dedicated server in a compliant data center simplifies everything from logging to encryption to audits.
  • Finance and payments: PCI-DSS mandates a secure, documented environment for handling credit card data. Dedicated servers give you consistent control over firewalls, file systems, and network segmentation.
  • Government or defense contractors: Contracts governed by FedRAMP, CJIS, or ITAR often demand physical isolation and tightly controlled hosting environments.
  • Mission-critical workloads: Applications with high availability, strict uptime SLAs, or sensitive customer data are best kept on infrastructure where nothing is shared and everything is observable.

Many organizations, even those heavily invested in cloud, use dedicated servers for core systems and compliance-heavy workloads. It’s not always an either/or choice.

What cloud does well—and when it’s good enough

Cloud hosting isn’t inherently insecure. In fact, many public cloud platforms offer good security features, if you know how to use them correctly.

Advantages of cloud hosting for security:

  • Quick patching and updates: Major cloud providers are fast to respond to kernel-level or hardware vulnerabilities (like Spectre or Meltdown).
  • Built-in tools: Some clouds offer DDoS protection, web application firewalls (WAF), and identity management systems out of the box
  • IAM and role-based access: Granular user permissions and auditing tools are standard in cloud control panels
  • Redundancy and backup options: It’s easy to spin up backup environments or store snapshots in multiple regions for disaster recovery.

Cloud is a good fit for:

  • Development or testing environments
  • Non-sensitive apps that need to scale quickly
  • Teams without in-house sysadmins
  • Startups focused more on speed than compliance

That said, all of these security features require configuration. Default settings are rarely secure enough for regulated workloads.

Compliance and control: what security-conscious buyers care about

Security-minded organizations consistently focus on three things:

  1. Control: You want full authority over how systems are configured, accessed, and updated.
  2. Visibility: You need logs, metrics, and real-time data on who’s doing what and where.
  3. Consistency: You want predictable infrastructure, with no hidden processes or third-party interference.

Dedicated hosting delivers all three by default. There are no shared layers, no cloud-native abstractions, and no “black boxes” between you and your data.

Cloud can deliver similar results, but it takes more work, more money, and often more risk.

Additional resources

What is a dedicated server? →

Benefits, use cases, and how to get started

What is bare metal restore? →

How it works, when to use it, pros and cons, and more

Fully managed dedicated hosting →

What it means and what fully managed services cover on dedicated hosting

Chris LaNasa is Sr. Director of Product Marketing at Liquid Web. He has worked in hosting since 2020, applying his award-winning storytelling skills to helping people find the server solutions they need. When he’s not digging a narrative out of a dataset, Chris enjoys photography and hiking the beauty of Utah, where he lives with his wife.

Let us help you find the right hosting solution

Loading form…