In the Cloud, there is an option to integrate additional resources if needed. RAM, disc space, or bandwidth, etc., can be added with few clicks and dismissed when no longer needed without financial loss. Thus, Cloud hosting can also be defined as a web hosting solution that provides resources on demand. It is dynamically scalable and customizable according to the needs of the customer. No large investments are required. Unnecessary resources can be removed without any cancellation or further fees.
Cloud hosting is an alternative to hosting websites on single servers (either dedicated or shared servers) and can be considered as an extension of the concept of clustered hosting where websites are hosted on multiple servers. With cloud hosting, however, the network of servers that are used is vast and often pulled from different data centres in different locations.