Cloud Hosting

Cloud hosting is the latest form of hosting that has become extremely popular over the past few years. The main concept of cloud hosting is "Divide and Rule" the resources required for maintaining your website are spread across more than one web server, and are rendered as per need basis.

This greatly reduces chances of any downtimes in case of a server malfunction.

Another noteworthy aspect is that cloud hosting allows you to manage peak loads easily, without facing any bandwidth issues, since another server can provide the additional resources in such a case.

Hence, your website doesn't rely on just one server, and rather a cluster of servers that work together, termed as "the cloud".

Something similar happens in case of an overload condition too. However, usage of low quality server hardware can significantly hamper the performance, and such implementations aren't worthy of being tagged with the cloud moniker this is typically the case with cheap hosting providers.

However, the pricing varies depending upon your actual usage in case of heavy usage; cost factor associated with cloud architecture may be slightly higher, though so is its resilience too.

When you come to VPS and traditional shared hosting, the cost factor is extremely low is this case quite obviously, but again so is the reliability too. In case of VPS, a single server is divided into multiple chunks, and each portion is managed by a particular user, so the capital investment is reasonably low.

VPS is the ideal choice for those who aren't actually looking out for the reliability aspect of cloud hosting.

Many businesses have made a worthy investment by moving to cloud, while others haven't yet invested in the infrastructure required to make a transition to cloud.

But, one can definitely expect to see more and more businesses making a shift to cloud as new low-cost cloud implementations continue to be developed, and I wouldn't call it exaggeration to say One day everybody would be in the clouds!"

Link:
Cloud Hosting Basics What It Is and How It Works