There are many types of cloud hostings - file, server, image, web etc hosting. But I think you mean server hosting. Cloud server hosting is like any other hosting, but you can configure and request your server over the web. Usually you pay hourly fee for server uptime (fee depends on your configuration) and outgoing traffic. You will have your own virtual machine somewhere and you have 100% control over it.
The biggest benefit is, that you do not have to worry about hardware.
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Over last number of years, cloud computing has become one in all the foremost promising IT solutions. The promise of cloud computing is kind of clear, reduction of operational expenses by increasing the utilization's of IT infrastructure.
Cloud hosting is a method of configuring servers in a such a way to allow for the most affordable, scalable, and reliable web infrastructure. Top befinits of cloud hosting are:
Globalize your workforce on the cheap.
Achieve economies of scale
Reduce spending on technology infrastructure.
Reduce capital costs.
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The easiest way to explain what cloud hosting is...imagine your household utility. You pay for however much electricity you need, and if you need more, you will get it.
Hosting in the past was more like...you had to rent a certain level of service, no matter if you used all of it or not. Also, if you need to use more computing/memory/disk space, it's hard to scale.
So, in summary, cloud hosting is a kind of hosting where all and each of the server resources are scalable/expandable and divisible, so that you will only pay for as much as you need. Kind of like pay as you go.
Cloud hosting is the new age technology of providing hosting solutions to users in a virtually scattered environment. Here all the user data is not stored at a centralized data centre.