When you first launch a website, you will more than likely start with a shared host. This type of hosting means that a single server has multiple users, and each user gets a certain amount of bandwidth.
For those just starting out or who have a small website, this is generally the default choice, as it is the easiest and most cost-effective solution.
The downside of shared hosting is that it’s, well, shared. There is only so much room on a server, which means you may experience slower performance depending on what the other hosted sites are doing. There is also an increased security risk, since one hacker would be able to access multiple sites.
Eventually you will probably start to feel the constraints of shared hosting, which will prevent high-traffic sites from optimal performance.
Cloud hosting takes care of these problems, because users are supported by several different servers. Switching to a cloud host means that sites with heavy traffic will always perform with consistent reliability.
Since you are no longer confined to one server, there is no limit to how much users can scale and expand.
Cloud hosting allows websites and apps with heavy traffic to avoid downtime, errors or slow page loading. If one server goes offline, another one will instantly pick up your site and keep it running seamlessly.
Cloud hosting also offers increased security, since your files will also be spread out over a variety of servers, and not stored in only one location.
Additional Australian research by Anna Rey