Overall, VPS hosting will be less efficient and limited in its level of resources available to your site. However, it’s a great fit for people who simply want to launch a website and have outgrown the limits of their shared hosting environment. A VPS is powerful and does offer improved performance, however the chances of your site going offline, or running into a resource issue is higher with VPS hosting, than cloud hosting.
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.