Basically, Cloud Hosting is an IaaS cloud delivery model that offers virtual services like data hosting or solutions to websites. It is delivered on an on-demand basis, where the client can tap into the services as much as they need to, and pay for only what they use.
This type of hosting is enabled through virtualization, where the computing capability of a data center is distributed simultaneously among multiple users. The user can utilize the underlying infrastructure to host their applications, data, or services. Cloud hosting services offer to host to websites on virtual servers which utilize computing resources from wide, extensive networks of physical web servers. These networks of servers are vast and may be placed in different data centers located in different places.
Cloud hosting can be considered an alternative to hosting websites on single servers, whether dedicated or shared hosting. It can even be thought of as an extension of the basic idea of clustered hosting in which multiple servers host websites.
Cloud Hosting can combine the capacity of several servers to offer a single cloud hosted server. This type of hosting offers enormous flexibility in scaling hosting resources. Cloud storage, cloud desktops, cloud servers - these are some examples of cloud hosted solutions.