Cloud hosting is basically virtual servers that pull their computing resource from extensive underlying networks of physical web servers. Cloud hosting, like Amazon EC2 and Google compute engine, has dedicated servers. If you want to manage cloud servers you need to hire a team of sysadmin. Another way to do it is by using managed services where you hire a service provider or use a tool that manages your servers for you. I have been using such service for hosting PHP and MySQL website on cloud.
Its easy terms, Cloud hosting means, all services are hosted in the group of servers and sometime multi-location to avoid service outage. In case of any problem with the server, the services are moved to other servers in the very Cloud.
@UnisecureYour signature advertises "Cloud Hosting Servers". If you really don't know what cloud hosting is ,why do you claim to provide cloud services? Who will buy from you a service, you don't understand?
If you are not newbie and if you know what Cloud Hosting is, why do you SPAM the forums by creating threads of extremely poor quality?
This question has been asked and answered a number of times in this forum. Plus there is Wikipedia and a number of reference websites. It is much better to go educated yourself there, than creating following the forums with meaningless threads.
PS: Don't get me wrong, I like answering your question, but then it will be another one and then a new one of the same kind. It is much better to have meaningful conversations here, rather then repression one and the same things as a group of people with mental disabilities.