Dedicated Servers are very Expensive to buy and require Capital Expenditure (CapEx) to purchase and setup. They require high maintainence since electricity bill, real estate is handelled by the company itself. The whole server runs a single web application.

In this type of servers the single server is still used to a single business entity but the physical machine is virtualized into sub-machines allowing us to run multiple web-applications or websites parallely on a singular hardware. It has much better utilization of resources as compared to “Dedicated Servers” but also provides isolation of resources as well.

A single machine, in this paradigm can be used by hundreds of businesses and relies on most tenants under-utilization of their alloted resources. It is very cheap as compared to the first two stages but has limited functionality and has poor isolation.

A multi-machine paradigm, that acts as one system. The system is abstracted into multiple cloud services. It is Flexible, Secure, Cost-Effective and Highly Configurable