Cloud, or grid, web hosting is a relatively new web hosting technology that allows for a type of shared web service. David Walsh of WebHostingSearch.com identifies cloud web hosting as one of the current trends in web services, and predicts that it will continue to grow in the next few years.
Cloud web services differ from other types of web hosting in organization of physical resources as well as pricing structure. Hundreds of individual web servers are linked together to form the cloud, and function as one enormous server. If one web server fails or is compromised, then its websites can be seamlessly transferred to another part of the cloud. In addition, if your website suddenly needs extra resources of space or bandwidth (your video goes viral!), you can access them immediately without having to renegotiate your contract. On the other hand, if traffic to your website slows, less bandwidth is allocated. The prices for cloud web hosting are usually tied to the amount of resources a website owner uses, rather than to a particular package price -- so there's a potential for cost savings over time.