There are a number of benefits to cloud hosting, some of which  might not directly apply to your business model. The following five  benefits of application hosting are those that can certainly apply to  every company and the way that they conduct business in the increasingly  competitive world that we all live in.
1. Lowered Hardware and Software Investment Costs 
Cloud hosting effectively removes the need that your business might  otherwise have for large servers. Servers and the maintenance of your  servers can be incredibly expensive. Another consideration in terms of  cost reductions is that cloud hosting reduces your need to purchase  potentially costly software upgrades. Your managed hosting company will  shoulder all of the costs to ensure that your dedicated servers are  up-to-date and that the version of the application you are using is the  most recent.
2. Increased Speed 
Because the servers that your applications are hosted on are  dedicated to your business needs, you'll notice that the amount of time  needed to bring up your application on your laptop or desktop computer  is decreased dramatically. Even hosting locally can result in a lot of  time spent waiting for the application to load, which then can result in  a loss of productivity for your staff.
3. Growth, As Needed 
As your need for storage grows, you'll be able to add on extra  processing power, extra RAM, and other needed resources as you need  them. This means that when you are looking into the costs of managed  hosting, you can invest in packages that offer you just enough for now,  and then add resources later on as you need them. This type of  flexibility can also offer you the potential for significant savings.
4. Lowered Maintenance Costs 
Remote application hosting will mean that your business doesn't have  the need to have as much hardware onsite. This can result in a decrease  in the need to maintain hardware, which can also result in not needing  to hired dedicate IT staff. Because cloud hosting uses fewer physical  resources at your place of business, you will have less in the way of  hardware to maintain, and you will also see a decrease in your over  operational costs.
5. Backups - Data Security 
One of the key benefits of cloud hosting is that they have  exceptional disaster recovery services in place. This means that if one  data center experiences an outage, your application and data will be  accessible from a separate data center. On the user end you may  experience nothing more than a brief delay logging into your  application, as the disaster recovery services kick in to ensure that  your backed up data is readily available to you when you need it.
There  are some definite benefits to cloud hosting, for companies of all  sizes. It is worth taking the time to consider just how cloud hosting  can make a positive difference in your company's ability to be efficient  in all areas of professional excellence. You'll see an increase in  productivity, a decrease in IT expenses, and an increase in operational  flexibility.