Cloud hosting is web hosting that uses several servers to balance the load and maximise uptime. Instead of relying on a single server, your website may make use of a "cluster" that draws resources from a centralised pool.
Have you gotten the point? This basically implies that if one server fails, another one takes over and keeps everything operating. Consider the cloud to be a network of networked computers. Additional resources are added to the total cloud as more machines connect to the network.
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