Cloud hosting costs more than a VPS because you are paying for a lot of hardware, complex networking, and the resulting uptime guarantee. With these plans, you pay for what you use, so costs could be unpredictable due to unknown traffic spikes. Think of it as you would your electric bill. Sure, there is plenty of power available for you to use when you need it, but your bill goes up at the end of the month.
There is a lot of talk these days about cloud computing or cloud hosting. Many companies are using these terms loosely to discuss either VPS or cloud servers (public or private). But, what do these terms mean? You will definitely see a difference when you look at the price tag, so understanding what each of these services are will help you in your quest to determine the best option for you or your company.

Three years ago, we added formal uptime monitoring to our review process, and the results show that most web hosts do an excellent job of keeping their sites up and running. If they don't, they suffer for it in our rankings. Even if they get everything else right, sites with uptime problems aren't eligible for top scores. All services suffer ups and downs, sometimes for reasons beyond their control. Those sites that fail to address the problem are penalized accordingly.

If you're looking for a real-time example of cloud hosting, what better example can someone give other than Google itself? The king of search engines has got its resources spread over hundreds of servers on the cloud, no wonder you've never seen Google.com facing any downtimes over past decade or so (I don't remember seeing it down – planned maintenance of services like AdSense and AdWords are a different affair altogether!)
Cloud hosting automatically distributes three mirrored copies of your data across multiple devices to ensure safety and redundancy. Additionally, HostGator employs a number of security measures to protect our servers and customers' websites. Our data centers are built using top-of-the-line technology, and servers are monitored 24/7 in a highly secure environment.
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