Generally, website hosted on a cloud hosting operates on a clustered servers where online operations are not limited to a single server. By handling security, load balance and hardware resources virtually, the website has access to the processing power of a number of servers that are distributed in real time.

As a metaphor for the Internet, "the cloud" is a familiar clich?, but when combined with "hosting," the meaning gets bigger and fuzzier. Some analysts and vendors define cloud hosting narrowly as an updated version of utility computing: basically virtual servers ( cloud servers ) available over the Internet. Others go very broad, arguing anything you consume outside the firewall is "in the cloud,".

Cloud hosting comes into focus only when you think about what website owners always need: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities.