To Clarify Further, We have not used Cloud Servers that much and well they seem like a normal VPS server unlike a VPS server which uses OpenVZ, Parallels or Xen. So I guess I'm just trying to understand the technology better
CloudVPSes comes with scalabale option more than a regular VPS can do, because it lives in a pool of resources. Some providers offer auto-scale feature as well. Some providers offer fail-over facility as well with cloud VPSes as well. Additionally the providers can put more controls over resources like CPU, network, etc.
Cloud server basically scale up and down on the fly while VPSes don't
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Generally, Cloud Servers and VPS are almost the same in practical terms, the both can be deployed with the same KVM virtualization, it just depend on each provider's offering and technology. They also give you the same server resources according to your package.
What is not normally offered on VPSs is the failover auto-migration from one node to another in case of hypervisor faults, but it also depends on your provider's configuration.