What it means
Instead of owning physical servers, businesses rent computing from providers such as AWS, Google Cloud, Azure or smaller hosts. Options range from fully managed platforms, where you only upload your app, to virtual servers you manage yourself.
Managed platforms are simple but can become expensive at scale. Self-managed servers, often with a tool such as Coolify, cost less and give more control, but need someone to look after them.
Why it matters for a business
Hosting affects speed, reliability, security and monthly cost. The right choice depends on traffic, skills and budget. Many small businesses overpay for hosting they do not need, while others take risks with setups nobody maintains.
A business example
Things to watch
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Watch monthly bills as traffic grows.
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Make sure backups and monitoring are set up.
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Know who is responsible for updates and security.
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Keep infrastructure settings in code or documentation, so the setup can be rebuilt if needed.