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Cloud computing is about hardware-based services involving computing, network and storage capacities. These services are provided on-demand, hosted by the cloud provider and can easily scale up and down.

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Cloud Providers vs Traditional Hosts

The real benefit of cloud hosting comes from the ability to quickly add and remove servers as needed to handle traffic. You only get charged for the amount of time that each server runs. … I don't know anything about Godaddy's grid hosting (they may just be behind the eightball on providing a cloud hosting interface). …
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