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What Is the Difference Between Cloud Networking and Traditional Networking?

Updated on 20 November, 2025

A comparison of cloud networking versus traditional networking architectures, highlighting key differences in design, scalability, and management approaches


Cloud networking and traditional networking differ fundamentally in their architecture, scalability, and management. Here's how they compare:

Feature Traditional Networking Cloud Networking
Infrastructure Relies on physical devices like routers, switches, and cables deployed on-premises. Uses virtualized, software-defined networking (SDN) over global cloud infrastructure.
Configuration Static and manual. Changes often require physical intervention or scheduled maintenance windows. Dynamic and programmatic. Networks, firewalls, and routing can be configured instantly.
Scalability Limited by physical hardware capacity. Scaling often involves significant procurement and setup. Flexible network deployment with the ability to create additional networks and subnets per region to accommodate workload requirements.
Management Managed locally, often requiring multiple tools and monitoring systems. Centralized configuration and management from a single interface using the Vultr Customer Portal, API, CLI, or Terraform.
Security Basic protections such as perimeter firewalls and VLANs. Updates can be slow and manual. Advanced security with network segmentation, distributed firewalls, private networking, and automated rule propagation.
Cost High upfront capital expenditure for hardware and ongoing maintenance costs. Operational expenditure model. Pay only for resources used, reducing capital and maintenance costs.
Reliability Dependent on single-location hardware. Failover requires manual setup. Built-in redundancy and global failover. Traffic can route dynamically across Vultr’s multiple regions.

Vultr’s cloud networking delivers secure, flexible, and scalable connectivity, enabling efficient communication between instances across isolated networks and global infrastructure.