How to Choose Between Cloud Hosting vs. Infrastructure as a Service (IaaS)

As the IT landscape continues to evolve, the demand for flexible, scalable, and cost-efficient computing solutions is rising faster than ever. Businesses—especially those in New Jersey—face an important question: Should we choose cloud hosting or Infrastructure as a Service (IaaS)?

Though they may sound similar, cloud hosting and IaaS serve very different purposes. Picking the right one can mean the difference between optimized IT operations and a costly mismatch.

In this post, we’ll explore the differences between cloud hosting and IaaS, explain when to use each, and offer practical insights for IT managers who are planning their infrastructure strategy—especially in NJ.

What is Cloud Hosting?

Cloud hosting refers to hosting applications, websites, or services on virtual servers that pull resources from a vast network of physical servers. It’s a managed solution—meaning the provider takes care of hardware, updates, uptime, backups, and more.

Instead of worrying about server space or hardware failure, you simply pay for the hosting package and enjoy seamless service with high uptime and scalability.

Typical Use Cases:

• Company websites and blogs

• CRM systems and SaaS platforms

• Small business apps or eCommerce stores

Benefits:

• Low maintenance: Provider handles server upkeep

• Scalable: Easily upgrade or downgrade based on demand

• Reliable: Distributed servers reduce downtime

• Cost-effective: No need for in-house infrastructure or dedicated IT

Many New Jersey businesses choose cloud hosting from Rivell for its simplicity, reliability, and strong local support.

What is IaaS (Infrastructure as a Service)?

IaaS delivers computing infrastructure (servers, storage, networking) as a virtual service. It gives IT teams complete control over the environment—ideal for customizing operating systems, installing business-specific software, or building internal systems from scratch.

Major players in this space include AWS, Microsoft Azure, and Google Cloud Platform.

Typical Use Cases:

• Enterprise software development

• Complex, data-heavy workloads

• High-performance computing (HPC)

• Disaster recovery & hybrid cloud environments

Benefits:

• Total control: You configure and manage the environment

• Highly scalable: On-demand resources for CPU, RAM, and storage

• Flexible pricing: Pay-as-you-go model keeps costs efficient

• Secure and compliant: Advanced encryption and access controls

If you need to migrate legacy systems or deploy custom apps, managed cloud in NJ is often best delivered via IaaS.

Infrastructure Cost Comparison: Cloud Hosting vs. IaaS

If cost is a major consideration, here’s what to know:

Cloud Hosting:

• Predictable monthly pricing

• Bundled services (e.g., backups, security)

• Great for businesses with consistent traffic

IaaS:

• Variable billing based on usage

• More economical for businesses with fluctuating or heavy workloads

• You only pay for what you use (compute time, storage, etc.)

Pro Tip: Use IaaS if your workloads are seasonal or high-volume. Choose cloud hosting if your infrastructure needs are stable and simple.

Cloud Migration Tips for IT Managers in NJ

Migrating to the cloud—whether it’s cloud hosting or IaaS—can seem overwhelming. Here are a few practical tips to make the process smoother:

1. Audit your current infrastructure: Understand what services and data you’re migrating.

2. Set clear goals: Are you looking to cut costs, boost security, or improve uptime?

3. Start with non-critical workloads: Avoid unnecessary risk by moving low-impact systems first.

4. Create a rollback plan: Always have backups in case something goes wrong.

5. Get expert help: Consider working with a managed IT services provider like Rivell to ensure a seamless transition.

IT Managers: When Should You Use Cloud Hosting?

Choose cloud hosting when:

• Your business needs a simple, reliable hosting solution

• You don’t want to manage software updates or server configurations

• You want to scale quickly without worrying about infrastructure

• Your in-house IT team is limited or focused on other priorities

When Should You Use IaaS?

Opt for IaaS if:

• You need customized environments for apps, development, or testing

• You’re managing large-scale applications or databases

• You require enterprise-grade security and compliance

• Your infrastructure fluctuates seasonally or by project

• You want to integrate with other cloud-native services

AWS vs. Azure vs. Managed Cloud NJ: Which Provider Should You Choose?

AWS and Microsoft Azure are the two major players in IaaS. Both offer vast tools and integrations. Here’s how they compare:

Feature	AWS	Azure
Maturity	Market leader	Rapid growth and integration with Microsoft stack
Support	Robust community + enterprise support	Strong for hybrid cloud and Microsoft environments
Pricing	Pay-as-you-go with cost management tools	Transparent pricing and cost calculator
Best for	Startups, developers, data-heavy workloads	Microsoft-heavy environments, hybrid setups

For localized support and hands-on help, a managed cloud solution in NJ through Rivell can combine the best of both platforms with personalized service and compliance-ready infrastructure.

The Local Advantage: Why NJ Businesses Trust Rivell

Choosing the right cloud model is just one step. Implementing it correctly is where many businesses stumble.

Rivell offers deep experience in:

• Managed IT for small and mid-size businesses

• Cloud infrastructure planning

• IaaS deployment and optimization

• Cybersecurity, backup, and disaster recovery

Why Rivell?

• Local NJ-based support team

• 24/7 availability

• Custom-tailored solutions

• Transparent pricing and communication

Final Thoughts: Cloud Hosting vs. IaaS in NJ

Both cloud hosting and Infrastructure as a Service (IaaS) offer powerful benefits—but they serve different business needs.

• Cloud Hosting: Great for simplicity, predictability, and low-maintenance websites and apps.

• IaaS: Best for flexibility, enterprise customization, and high-volume computing.

If you’re an IT manager in New Jersey looking to plan, scale, or upgrade your infrastructure, take the time to evaluate your team’s skills, business goals, and security needs.

Still not sure what’s best for you? Rivell’s cloud consultants can walk you through the decision-making process, handle migrations, and support your environment 24/7.

FAQ

What is the main difference between cloud hosting and IaaS?

Cloud hosting is a fully managed service ideal for hosting websites or applications with minimal maintenance. IaaS offers raw infrastructure with full control, suitable for custom environments and complex workloads. 

Which is better for small businesses—cloud hosting or IaaS? 

For most small businesses, cloud hosting is the better choice due to its simplicity, lower maintenance needs, and predictable costs. IaaS is more suitable for businesses with technical expertise and custom infrastructure requirements. 

Is IaaS more expensive than cloud hosting? 

Not necessarily. IaaS follows a pay-as-you-go model, which can be more cost-efficient for businesses with fluctuating demands. However, cloud hosting offers bundled services at a predictable monthly rate, which some businesses prefer. 

Can I migrate from cloud hosting to IaaS later? 

Yes. Many businesses start with cloud hosting and move to IaaS as their infrastructure needs become more complex. A managed IT provider can assist with a seamless transition. 

Why do New Jersey businesses prefer managed IaaS or cloud hosting from Rivell? 

Rivell offers local, hands-on support with expertise in both cloud hosting and IaaS. Their NJ-based team helps businesses with planning, migration, security, and 24/7 support, ensuring smooth and secure operations. 

When should I choose IaaS over cloud hosting?

Opt for IaaS if your business needs include custom applications, development environments, legacy system migration, or enterprise-grade scalability and compliance.