Physical server vs Cloud server; which one is better for small low budget

Hi Eexperts,

I need 1 or 2 servers to make repository and some bug-tracking softoware and make test server to test my web-application. I am very very small business or low budget you can say.
I am thinking to buy a physical used server and install ESXi on it and load few vm images to make the server and put the server in my grage or some data-center or should I go for cloud option and load my vm images there?
Which option is better? Cloud looks easy to me as I dont have to maintain internet, hardware but seems to be expensive.
Any suggestion? Which cloud services are better where I can load my Linux based images ?

One more question:
Is physical server hosting companies are dying? or moving to cloud?

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Natty GregIn Theory (IT)Commented:
Its a matter of preference,  you host the server and do your backup and send them to an offline storage facility or pay for cloud and let them be responsible for keeping your data safe.

or host your own server and back them up to the cloud. I'd choose this option.
student237Author Commented:
HI Nattygreg2,
Can you explain more. I have a few questions in your suggested option 2:
1. Can I put my server in Garage with highspeed internet? Is that a good and reliable solution or should I keep it on data center?
2. To keep backup on cloud, where can I keep it? Which companies are good and affordable to keep backup?

Also one more question about keeping server on cloud like AWS, etc. What are other options or companies which offer affordable solution for the cloud server, and do you know any good website to explain more about cloud? As I think I have no knowledge about it.

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student237Author Commented:
Also can you please explain how AWS pricing work in my case: Like I will run Apache/MySQL/Php for web-applications and some of my ecommerce and static websites. Also I wan to run SVN and redmine type issue tracking software.
So for this purpose if I run a server of 2GB or 4GB server, how much they will charge me maximum?

Natty GregIn Theory (IT)Commented:
Here are some information to read up on cloud storage.

Here is the argument and deciding factor on cloud storage  and some providers

The answers to your questions lies in the two articles above,

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student237Author Commented:
I agree with you about cloud and I will go to have my own server. Thanks.
Natty GregIn Theory (IT)Commented:
ty, I'm glad i could help
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