Cloud Hosting Providers use virtual servers and Cloud storage to provide a variety of services to client businesses. The cost savings are significant because claim businesses do not have to maintain hardware and software licenses. Also, they do not have to manage an IT staff to maintain their Data Center and complex IT infrastructure.

The cost to operate a Data Center has risen because of new innovative technologies that involve e-commerce data warehousing, voice over internet protocol, networking, and more. To keep competitive, businesses need to use the state-of-the-art equipment. A Cloud Hosting Provider can serve its client with improved performance with the right equipment to be able to meet the challenging demands. Cloud Hosting Providers use cost-effective measures that ensure a business has the best data processing capability necessary to maintain a competitive business.

The networking capabilities of Cloud Hosting satisfy the requirements for high volume data warehousing and e-commerce activity. Businesses, today, collaborate with work and need the network capabilities that connect staff to data. This data runs on software within a Cloud Hosting environment that enables remote access efficiently. The flexibility in collaboration that Cloud Hosting Providers offer help businesses create a remote working facility while information is stored on servers and accessible through the Internet. This capability keeps colleagues connected and is able to accomplish more no matter where they are physically located. Time is saved by eliminating the need for travel and conference calls. The work that needs to be done is collaborated quickly and efficiently without any delay.

Cloud Hosting Providers offer convenience, stability, and security. Businesses have increased security with Cloud Service Providers because data is transmitted offsite through the provider’s portal. Automatic backups are created so that a business’ data can be stored offsite. The Cloud Computing environment has redundancies in place to assure reliability and up time availability. In the event of a business interruption, the data is protected by a Cloud Hosting Provider that holds a company's information on redundant systems offsite through an Internet connection. This methodology assures disaster recovery planning is cost effective and automatically tested on a regular basis. Many businesses consider Cloud Hosting Providers as a form of insurance that protects data offsite.