Cloud Hosting is one where two or more computers are connected into system. Servers included in these systems are not just bundled, they are collaborative process redundant tasks, process different tasks, stores data parallel, which helps to secure data and flawless experience of website visitors.
Together connected shared resources act as supercomputer. Cloud Hosting is based on most innovative web hosting technologies which are available right now and your files and websites are stored on unlimited number of machines which act as a system.
Infrastructure is not limited to single server in traditional hosting. In cloud hosting, web hosting services like mail services, ftp, file storage run on different servers. These separation ensures that if any failure happens in one device it will not cause failure in entire service.