Some of the primary reasons that people are getting into Cloud hosting are load balancing and reduced usage fees.
First, a look at cost: with traditional hosting, you pay a set amount per month, which is a bonus because it's easy to budget a set amount. A number of Cloud hosting companies offer a utilities-style pricing, where you pay for the amount that you actually use bandwidth, applications, storage, processing, etc., rather than a set fee. This "metered" system, although less predictable for budgeting, can result in a lower bill.
Second, a look at load balancing: with traditional hosting, you have signed on to use the resources of one or a small set of either shared or dedicated servers owned by the provider. Say you have a website and traffic to that website spikes one day: because you have purchased only so much bandwidth, processing power, and storage, the performativity of your website decreases, possibly discouraging repeat visits. With cloud computing, resources are pooled and balanced over many servers, which means that a cloud provider can direct and redirect the system's various physical and virtual resources toward the cloud users according to their individual needs-similar in functioning to a public utility like a power company.
The distribution of resources is elastic and dynamic, ensuring that when a user requires a lot of resources, they are assigned the resources they need. This happens automatically in some cases and in others rapidly. If, for example, you are using Cloud hosting for your website from which you sell holiday cards, the "peak load" demand on your website's bandwidth and applications will occur around the holidays. With the on-demand, scalable, and elastic nature of the cloud network, bandwidth and other necessary resources will be directed to your website as usage increases.