A cloud based server is a virtual server (that is, it is not a physical device but is implemented in software) that runs remotely in a cloud computing facility. It is managed and maintained by the cloud computing provider and is accessed remotely through the internet. It has all its settings and software defined so that it acts as an independent server to the end-user.
These type of servers have the benefit of stability and security for the end-user without them having to be concerned with the implementation and management of the physical devices on which it runs. Because an end-user’s cloud server is isolated from other users they cannot impact its performance or access its data, unlike on a physical server. They are also fast and stable since the cloud provider uses state of the art hardware and software components to manage servers and offers high speed access to them.