I personally think cloud hosting is way better at least from what I heard and read about it. he costs are competitive with regular hosting and the benefits are of great value to very high-volume sites.
"In a cloud hosting setup, several different servers provide access to the site's resources. Typically, there is a great deal of redundancy built into the system so that a video file may be available on several hard drives instead of just one, for instance. If ten users all request that video file at the same time, five of them can be routed to one server and five to the other, thus halving the amount of bandwidth demanded of each server. This array of servers constitutes the "cloud"."
This can be very helpful in outsourcing businesses or remote communications with business partners and the like.