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Cloud... I say don't bother. Cloud is NOT CDN.

CDN, depends on the type of CDN you're looking for. There are budget cdns like 100tb, swiftway that specialize in large volume traffic (streaming videos?) whereas there are cdns like cachefly, akamai, amazon who specialize in small but fast, highly distributed traffic (more important if you have a lot of asian market). Without asia though, budget ones are as good as expensive ones. In fact, without asia, need for one isn't that great. If you get a server in western US, you can easily get around <150 ping to all of USA, Canada and most of Europe.

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No, when your site get more and more users, you need a dedicated server. Cloud at a big dedi performance is not only extremely expensive, statistically, it's proving to be worse. Theoretically, clouds sound awesome, realistically, not so much. Between software bugs that take down entire cloud notes, mess up data, and physical distances between nodes, it's really not as good. Perhaps in the future (maybe half~full decade), cloud will be awesome. But right now, nope. Even huge ones like amazon cloud down time caused by software error took down massive numbers of websites around the world including big ones like reddit (who then quickly moved out of it) for days. Even the most expensive cloud services like rackspace have nightmare stories where people data even got completely deleted.

Cloud... I say don't bother. (Not to be confused with private cloud)

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