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According to a recent report from the Hosting News, cloud hosting plans, such as VPS cloud hosting, have become so popular that new solutions are being developed within the technology. The primary divide between these solutions comes in the relationship between private and public cloud hosting plans, the report said.

The report said private cloud solutions are best for companies with tight security regulations, because they keep all of the data directly under the organization's control. As a result, lines of data ownership and responsibility are not blurred. Private clouds are also capable of providing significant scalability because hosting providers can upgrade software and hardware relatively easily.

However, the report said flexibility is the prime advantage of a public cloud hosting solution, where the IT services are all moved to the hosting provider's data center. In this type of plan, resources can be distributed with incredible flexibility while reducing the need for internal IT investments, according to the report.

A recent report from the Host Review said cloud hosting plans can actually guarantee 100 percent uptime because critical malfunctions can be avoided by simply putting data on another device.