Cloud hosting is not a very novel concept. The cloud architecture is built off basic VPS structuring only to deliver the required performance but it extends further from a simple VPS. Now a VPS allows you to store your data and applications on a partitioned server which also has other users. These servers provide good response times and minimal downtimes.
A cloud also works in a similar fashion except for the fact that instead of a single server like in a VPS, the Cloud comprises of multiple servers sometimes hundreds of them networked together. Hence the data is spread out redundantly on multiple servers and there is no worry for business regarding their data being lost.

Scalability
In a VPS one has to purchase additional space when the need arises, but in of case cloud hosting the server space can be increased as and when needed. Thus, a VPS offers scalability to the extent of the size of the server. Whereas, in the cloud this limit is very high.

Therefore, Cloud Hosting is a preferred choice.
What are your views?