Computers and the internet have changed the way we work. The use of web-based applications, banking on the robustness of the underlying internet networks, has changed our lives to a great degree. These web-based platforms required physical servers to host these applications which could then be used privately or by public. There was always a danger of physical crash of server. These required development of contingency plans and further investment in back-up systems which could ensure that the applications continue to run smoothly. Safety aspects of servers always baffled technology geeks. It was in this backdrop that the concept of cloud hosting services gained ground. 

Cloud hosting services use a network of many physical servers for hosting the applications. Thus, instead of using the computational power of one system, it uses the power of many such servers which increases its range of computational speed. Further, since the application could be hosted on a number of systems, there is literally no risk associated with it. Functions could be called from another system if there is a problem with one server. Since these systems are interconnected with internet backbone which is capable of delivering high bandwidth, there is no time lag in responses.

Cloud hosting services are an extension of VPS services, from one to many systems. However, conceptually and in applied manner it is much wider in scope than VPS. For the clients, the cloud services are not billed in the traditional manner where the plans are based on storage space. Whether clients are able to use their allotted space and bandwidth or not, does not impact the prices of the services under traditional plans. This, at times, makes the costs quite high for small and medium level organizations. Therefore, on one hand, the clients might be paying more than what they are actually using and, on the other hand, the clients might need to change servers when these allotted resources are exceeded. 

Cloud hosting services resolve these discrepancies of pricing. Clients pay for what they use. They do not pay for what they are not using. This makes these services a lot more reliable in terms of costs. There is no need of changing the servers for a long time since the systems are highly scalable and flexible to accommodate demands of any scale. Many web-based businesses which see a seasonal demand fluctuation use cloud services. This enables them to pay as per the consumption or usage of these services. These services have helped enterprises grow globally. These enterprises can now remain assured of the safety of data and focus on global growth with easy coordination and control among different branches. Many new start-ups use cloud services since there is a need for meeting their changing requirements in the initial stages of business and its growth. 

Cloud hosting services has seen good growth globally in the past one decade. This is perceived to be a multi-billion dollar industry. This has also seen many new entrants in this field which has helped the cause of healthy competition in meeting the requirements of clients.