One of the major differences between cloud servers and VPS servers is the cost factor. The reason being that VPS is built out of a dedicated server and works on the same principal of paying a fixed monthly plan. Customers have to shell out the money even if they do not use all the resources that are offered in the plans.
Cloud services on the other hand runs on the pay-as-you-go model. Users can subscribe to the services they want and pay for what they have consumed. Cloud is very highly scalable. Users can choose to keep the resources and increase it at times of peak traffic instantly. They can lock up the services they do not require and also do not have to pay for it. This is not possible with VPS as you pay for the plans you choose which come with pre-allocated resources.
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