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IT infrastructure

What is a cloud server?

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What is a cloud server?

A cloud server is a powerful physical or virtual infrastructure, hosted remotely by a cloud service provider, that delivers applications, processes information or provides data storage.

Some cloud servers are created by using virtualization software that divides a single physical (bare metal) server into multiple virtual servers. Cloud service providers use an infrastructure-as-a-service (IaaS) model to make virtual or bare metal servers avalable to customers.

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Key features of cloud servers

  • Computing infrastructure that can be physical (bare metal), virtual or a mix of the two depending on use case

  • Has all the capabilities of an on-premises server

  • Enables users to process intensive workloads and store large volumes of information

  • Automated services are accessed on demand through an API

  • Gives users the choice of monthly or as-you-go payment

  • Users can opt for a shared hosting plan that scales depending on needs
Think Keynote

Accelerate AI ROI with hybrid cloud

Learn how a full-stack hybrid cloud approach helps organizations run AI reliably, meet regulatory and security requirements and deliver sustainable ROI at scale.

Discover Power Virtual Server

Why cloud servers?

Cost effectiveness

With cloud servers, organizations only pay for what they need and reduce the expense that comes with maintaining server hardware.

Scalability

Users can scale computing and storage resources to meet changing needs. This is helpful for organizations with fluctuating needs.

Integration

An organization’s cloud servers are networked to ensure uninterrupted communication and fast deployment. A “single pane” enables complete control.

Considerations

  • Virtual servers versus physical servers: Physical (bare metal) servers are best for data-intensive workloads. Virtual servers are better for highly variable workloads.

  • Virtualization: Cloud servers can be physical or virtual. Virtualization software options include VMware, Parallels and Hyper-V. (See the video below for more on virtualization.)

  • Customization: Physical servers have numerous customization options, such as more processing power, extra RAM and backup power.

  • Security: Security options for cloud servers include firewalls, anti-virus software, monitoring and host intrusion protection.

Choosing a cloud server: an IBM perspective

Cost versus technology versus provider

I've observed or been a part of buying decisions for a few thousand server customers, from small-business owners getting a website online for the first time to established platforms with tens of millions of visits every day. While each of those purchasers had different requirements and priorities for a cloud server, a few key deciding factors were consistent across those decisions:

How much will it cost? What configuration/technology is best? Which provider is most trustworthy?

Every website administrator has had to answer those three questions. While they seem straightforward, they end up overlapping, and the buying decision starts to get a little more complicated:

The natural assumption is that everyone chooses a cloud server that falls in the “sweet spot” where the three circles overlap, but server decisions are not made in a vacuum. Completely valid hosting decisions can target every spot on that graph.

Let's break down the chart into a few distinct zones to look at why a user would choose a server in each area:

  • Zone 1: Budget takes priority over everything else.

  • Zone 2: IT administrators at huge enterprises that have on-premises servers or loyal customers who do not wish to change providers.

  • Zone 3: Buyers who need the fastest, most powerful, most scalable infrastructure on the market.

  • Zone 4: Customers who are loyal to a provider as long as that loyalty doesn't take them out of their budget.

  • Zone 5: Users who love having the latest technology and value being able to manage it through one provider.

  • Zone 6: Will choose the cloud environment that provides the best performance for their budget, regardless of the provider.

  • Zone 7: Buyers who value all three of their priorities equally and can choose an environment that meets all of their needs.

Numerous transitioning happens between an initial buying decision and a follow-up decision.

Regardless of how you make an initial buying decision, when it's time for the next cloud server, there is a new factor to take into account: you'll probably want to grow in the same place.

Moving between providers can be a pain, managing environments between several providers is more difficult and if servers have to work together, they're generally doing so across the public Internet, so you're not getting the best performance.

If you had to choose a zone that best describes your buying decision, which one would it be?

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Resources

Blog Introducing Agentic Infrastructure Lifecycle Management

Introducing Agentic Infrastructure Lifecycle Management

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Guide The Resiliency Gap guidebook

Download the guidebook to learn how to move beyond recovery assumptions and build greater confidence in your organization's ability to recover when it matters most.

Get the guide
Waitlist Be the First to Know: Get the latest IBM FlashSystem updates

Stay ahead in the world of storage infrastructure innovation. By joining our waitlist, you’ll receive timely updates.

Sign up for the waitlist
On-demand webinar Build, deploy, and manage everything as code with HashiCorp

Learn how both HashiCorp Terraform and the HashiCorp Cloud Platform can be used to create and administer all areas of a modern public cloud environment as code.

Watch the webinar
Report AI Is Becoming the Largest Enterprise Workload. Is Your Infrastructure Ready?

According to IDC's 2026 AI View survey, AI is rapidly overtaking all other workloads, yet many organizations lack the infrastructure strategy needed to scale successfully. Discover why integrated, full-stack AI platforms are becoming essential for accelerating deployment, improving ROI, and operationalizing AI across the enterprise.

Read the IDC report
Research report AI Infrastructure for the Future of Banking

Explore how Tier 1 banks are building the AI infrastructure foundation to scale safely and effectively. This paper highlights 10 high-impact AI use cases and a pragmatic roadmap, showing how hybrid cloud, IBM Z, and modern data architectures enable secure, real-time, and compliant AI at scale.

Explore the AI infrastructure roadmap
Interactive tour Modern IT Infrastructure for AI-Driven Enterprises

Discover how integrated hybrid cloud, automation, and AI capabilities transform traditional IT infrastructure into a scalable, secure, and intelligent platform. This interactive demo shows how enterprises can optimize performance, reduce complexity, and support real-time workloads.

Explore the infrastructure demo
White paper Accelerate innovation with a secure, hybrid cloud foundation

A framework for simplifying hybrid cloud operations with consistent security and governance.

Read the white paper
Case study How Harvard Scaled AI Safety Research with High-Performance Cloud Infrastructure

Limited GPU availability was slowing down frontier AI safety research at Harvard’s Calmon Lab. By leveraging IBM Cloud® with NVIDIA H100-based infrastructure, the team eliminated compute bottlenecks, achieved inference speeds exceeding 2,000 tokens per second, and dramatically accelerated LLM experimentation and model alignment research.

Read the case study
White paper Accelerate innovation at scale with a unified cloud platform

Learn how platform engineering teams scale infrastructure with automated workflows and centralized control.

Read the white paper
IBV report The enterprise in 2030: Engineered for perpetual innovation

Discover our five predictions about what will define the most successful enterprises in 2030 and the steps leaders can take to gain an AI-first advantage.

Read the report
Podcast Understanding the true costs of gen AI

Discover the hidden costs of scaling generative AI and learn from experts how to make your AI investments more efficient and impactful.

Listen to the podcast
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IBM Power Virtual Server and IBM Servers provide high-performance, flexible, and reliable infrastructure for running mission-critical workloads on-premises or in the cloud.

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