In a nutshell, cloud hosting (often also referred to as clustered hosting) is a step up from the shared hosting infrastructure that is commonly used today.
By handling security, load balancing and server resources virtually you are no longer restricted to the limits of one physical piece of hardware. In basic terms, online operations are not limited to a single server, they have access to the processing power of a number of servers that are distributed in real time.
In a physical environment, a web site (for instance) is limited to the resource constraints that is housed within the physical unit (RAM, processing power, bandwidth etc). The concept of a cloud infrastructure no longer has this limitation – you, as a customer, can purchase as much computing power as you need from a virtually inexhaustible supply. The nature of the infrastructure means that scaling up and down is seemless and thus spikes in traffic aren’t problematic.
Load-balancing occurs at the software level and is dynamically load-balanced across a number of servers. Servers can be added or removed from the cluster with no impact or downtime on hosted applications meaning less disruption for customers. The cloud architecture has the ability to provide small and medium enterprises the stability and resilience of a web hosting architecture that a few years ago only huge corporate organisations could obtain through huge IT expenditure.
Scalability
Through your cloud hosting account, you can add and/or remove resources to your hosting environment, as and when you need them.
Instant
As you change your hosting environment settings, the effect is immediate.
Save Money
You only pay for what you use – gone are the days of renting additional servers for short periods of time to load balance your site. Simply increase your cloud hosting requirements, until you no longer need them at that level.
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Since the Network Cloud Service providers had to build buildings that had high-quality power and were physically secure, it made sense for them to begin to offer data center space for these emerging consumer application cloud services. In the early days it made more sense for Google to use Savvis to provide data center space. Today, companies like Twitter, Facebook and OpenTable continue to rely on data center services provided by companies like Savvis, NTT, Terremark, and others. Of course, anyone who becomes a student of the cost of computing comes to realize that the cost of power is a big driver. As a result, anyone who needs space for 100,000+ computers (e.g., Google, Amazon, Microsoft) is building data centers located near low-cost and reliable power.
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