Ask HN: Cloud vs Traditional hosting (Costs/Scalability/Backups)

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I am a student entrepreneur who would like to start my first company this next quarter (when I say company I mean I will be forming an LLC).

I have some questions about traditional hosting versus cloud

1) Costs - are traditional or cloud services more cost effective. Could you please provide which hosting/cloud company you are with as well?

2) Scalability - Which is better for scalability? (Or should I even worry about this yet)

3) Backups - If using a traditional host what do you use to backup everything? What about on the cloud?

Thanks!