In terms of backups, databases and files, it all depends on the type of setup you choose. If you choose a server with a control panel it will make it effortless but if you want to do it manually, i suggest you take some time to learn how to do it properly, because, one error and you might loose everything you have worked for. My suggestion for a best server setup is a cloud managed cPanel VPS with SSD and good backup tool.
Virtual private servers have become a popular choice for web hosting because they offer many benefits of dedicated servers at a lower cost. They also provide the added benefit of easy scalability. Since each VPS is virtualized, the configuration can be updated with a software modification rather than a hardware upgrade. Still, dedicated servers often provide better performance since all the resources of the physical machine are dedicated to a single server.
Since the 90’s VMware has been evolving. It started as a clumsy little software that used to be installed on a Windows desktop. Then from there, it changed into GSX for Windows Servers. And then again it morphed into ESX which eliminated the need for Windows and booted to a Redhat kernel. And later in version 4, it became ESXi which now runs on a custom Linux kernel.
You can create a VPC where instances in one subnet, such as web servers, communicate with the Internet while instances in another subnet, such as application servers, communicate with databases on your corporate network. An IPsec VPN connection between your VPC and your corporate network helps secure all communication between the application servers in the cloud and databases in your data center. Web servers and application servers in your VPC can leverage Amazon EC2 elasticity and Auto Scaling features to grow and shrink as needed. You can create a VPC to support this use case by selecting "VPC with Public and Private Subnets and Hardware VPN Access" in the Amazon VPC console wizard.
I was running a small private weather website in AWS and the satellite images got "picked up" by a news website and they regularly use them during major weather evenings. AWS' 12c per GB of outbound network traffic made things expensive and VPSServer makes this a lot more manageable and has excellent data volumes included with the price of the VPS. I also get many more CPUs for the price compared to AWS, so I am a happy customer.

The force driving server virtualization is similar to that which led to the development of time-sharing and multiprogramming in the past. Although the resources are still shared, as under the time-sharing model, virtualization provides a higher level of security, dependent on the type of virtualization used, as the individual virtual servers are mostly isolated from each other and may run their own full-fledged operating system which can be independently rebooted as a virtual instance.
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