You get to benefit from an economy of scale, meaning you sharing hardware with other businesses but only pay for the amount of compute and storage capacity that you use. If you need to increase your usage, you can do so through a dashboard. You have unlimited flexibility to increase or decrease your resources and can change server specifications with the demands of your business.
Cloud hosting is a network of servers in multiple locations, which share data and resources among themselves. That reduces server load and increases performance. As the demand rises, clients can easily scale their plans. By doing so, they increase the performance of their cloud hosting in just a few clicks. Now, it’s quickly becoming more and more popular.

Rather than being hosted on one single instances of a physical server, hosting is delivered on a virtual partition which draws its resource, such as disk space, from an extensive network of underlying physical servers. If one server goes offline it will have no effect on availability, as the virtual servers will continue to pull resource from the remaining network of servers. 

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