However another option is to pool together a cluster of physical servers into a cloud arrangement whereby the data is stored across several physical disks in several physical machines. This dramatically reduces the possibility of hardware related downtime by spreading the load and the risk of hardware failure. This is a High Availability Cloud setup which Pickaweb uses.
With unmanaged VPS hosting, the cost is also much cheaper. It is not uncommon to find $10 unmanaged VPS plans because the web host does not have to pay for a cPanel or Plesk license and are able to minimize costs. Also, since the web host does not provide software and account support for an unmanaged VPS, the host also saves money on customer support. In the end, you'll have VPS hosting that is typically $20-30 cheaper than a managed VPS solution.
VPS has a dedicated IP address, which you do not have to share with other users. This is important, as in shared hosting many domains are under one IP address and if one website fails, the whole IP address is added to the blacklist. Also, in case of shared hosting, your website's load can be affected by another user on the same server. It means that if your "neighbor" website is loading or it is inaccessible for various reasons, your website loading time can be increased too.
With unmanaged cloud VPS hosting, the hosting provider is only responsible for the physical server and the availability of the server.  This means that with the exception of the initial OS installation, the user is responsible for the maintenance, upgrades, installation of software, etc.  If you choose unmanaged cloud VPS hosting, you should be familiar with the operating system and server software you choose to use.

A key aspect of VPS internet hosting is its virtualization capabilities. With VPS, the hosting provider divides each physical server into multiple smaller virtual servers with private and dedicated RAM and hard drive space. This provides site owners with a more isolated hosting environment without disruptions from other clients sharing server space.
A VPS runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes they are functionally equivalent to a dedicated physical server, and being software-defined, are able to be much more easily created and configured. They are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other VPSes, performance may be lower, depending on the workload of any other executing virtual machines.[1]
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