Cloud servers are created using virtualization software to divide a physical (bare metal) server into multiple virtual servers. Organizations use an infrastructure-as-a-service (IaaS) model to process workloads and store information. They can access virtual server functions remotely through an online interface.
To put it simply, cloud servers mean virtual servers which run on a cloud computing environment. That is why very often Cloud Servers are referred to as Virtual Dedicated Servers (VDS).

