Cloud Hosting Definition
The cloud has acquired an almost-mythical status among computer buffs. Cloud hosting is also called clustered hosting, because the hosting is spread between multiple connected servers. This loose network is referred to as the cloud. This can be confusing because the Internet at large is also called the cloud, since that is what enables the practice of cloud computing to be done anyway.
The thing to keep in mind is that the cloud promises to be one of the most exciting and innovative online products of all time. Think about it - hosting can be spread between multiple servers, reducing the risk of down-time. If anything goes wrong on one of the servers, the rest of them can simply pick up a little more slack.
Previously, server hosting was limited to the hardware that you were able to keep on hand. Your resources were usually limited to your physical server's amount of random-access memory, processing power, storage capability and bandwidth access. Typically, this greatly limited the amount of work you could get done, even if you were able to set up multiple servers.
Cloud computing, or Internet-based computing, has solved that problem by initiating large-scale transfers of computing power to the Internet, enabling resources to be distributed across multiple server networks. This bypasses the traditional hardware limitation, and frees clients from the need to concentrate on acquiring hardware and start providing services to their customers.
The advantage of cloud computing is the ability to scale your business as required, with virtually no major changes to your asset structure needed. This is because you only pay for what you use. The one big downside to cloud hosting is that it affords you no root access; without root access, no control over the server itself. Also, sites utilizing cloud hosting can still experience down-time if the connections between servers are not working.

