Unlike Web Hosting (also commonly referred to as shared hosting), Cloud Servers give you access to dedicated resources on a shared physical webserver. This means you have more control, reliability and performance than you would with regular web hosting.
Unlike Dedicated Servers, Cloud Servers share the same hardware with other Cloud Server clients, making performance degradation caused by other users still possible, although quite rare. By sharing the same physical hardware, you also share the costs, and as such Cloud Servers can deliver similar performance to entry-level dedicated servers at a fraction of the cost. Cloud servers are also elastic, and can be upgraded automatically at any time.