Postback setup

After reading a bit on Postbacks, I understand that the postback_url can only be set to the webserver where the user's Kite application is running. So, in order to use postbacks, do I have to host my application in cloud? If so, is this because the postbacks are custom messages that a public server (like a blogging sites) cannot understand?

Do we have guidelines on setting up Kite application a cloud server? Also, I use Flask, which throws the following warning:
WARNING: This is a development server. Do not use it in a production deployment.
Use a production WSGI server instead.
In cloud, would I get a production WSGI server in the plan I choose?
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