Cloud hosting is today's hottest technology. It mainly designs to provide 100% uptime, better resources management.
Just for example, in VMware cloud technology features like fault tolerance and high availability helps to provide 100% uptime for vps.
User experience zero downtime for their vps even if server hardware failed as their vps can be automatically moved to another server within fraction of second.
Similarly with the help of distributed resource scheduler the resource intensive vps can be moved automatically on server within cluster where it will have free resources.