A newer alternative to the more traditional idea of renting server parts is the idea of renting storage space in the cloud from hosting resources. This service relies on a hosting provider combining existing physical resources – storage space, bandwidth, etc.
They provide users with a virtualized white-label cloud services set of computing resources within a virtualized platform to host their sites. Therefore, the user does not occupy any storage space on any or all of the physical servers, but their location actually takes up the resources of the network of several physical servers.
The environment in which their hosting platform exists differs in a virtual sense and not a physical one through the use of virtual partitions (similar to VPS). Users can even go a step further and lease an entire network of virtual servers to create a virtual data center (VDC) that can meet all general web hosting or business hosting needs.
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Cloud hosting comes under the scope of cloud infrastructure as a service (IaaS). Due to its dynamic nature, hosting resources are mostly sold as utilities that can be used when needed.
The virtual hosting platform can be customized to meet resource requirements as it is free from physical constraints and users only have to pay for the resources they need, when and when they use them. Denial of capacity loss that could be caused by internal hosting or leased storage space (especially dedicated servers).
Moreover, the economies of scale created by the hosting provider by launching huge resources for the data center can be passed on to the users. This means that cloud hosting is also an inexpensive way for users to access the specific layer of data they need.