Cloud hosting is the latest form of hosting that has become extremely popular over the past few years. The main concept of cloud hosting is "Divide and Rule" – the resources required for maintaining your website are spread across a cluster of servers that work together, termed as "the cloud". This greatly reduces chances of any downtimes in case of a server malfunction.
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.