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A server instance provides you with dedicated resources for you site (RAM, CPU, etc…) that you don’t get with any of the shared or shared business plans. So of course, you get better performance and it can handle more traffic and more processes running at once.
A cloud server is a virtual server (rather than a physical server) running in a cloud computing environment. It is built, hosted and delivered via a cloud computing platform via the internet, and can be accessed remotely.
Cloud servers can be configured to provide levels of performance, security and control similar to those of a dedicated server. But instead of being hosted on physical hardware that's solely used by you managed by your cloud hosting provider.
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Each region has from two to five so-called Availability Zones, each of which has from one to as many as eight data centers. Data centers, in turn, range from 50,000 servers to as many as 80,000 servers.