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 provides significant capital and operational savings to organizations because they don't have to spend a lot on the initial upfront capital cost associated with owning and managing data centers. IT also has the ability to scale more efficiently, using and paying only for the resources they need. In addition, long-term data retention becomes a more simplified process, eliminating the costly management of disks and tape systems.
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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