With shared hosting, which is more common among small and medium sized businesses, the client pays for a set amount of space (storage) on a single server, and that server’s resources are shared by a number of other websites. It’s a cost-efficient, low-maintenance way to host a website or application, and the hosting company is responsible for managing, maintaining, and updating the units. Cloud hosting offers a level of scalability that traditional hosting can’t. Cloud hosting companies provide virtual space on an on-demand, as-needed basis. Instead of paying for a set amount of space upfront on a single server, the user pays as they go for what they actually use. With cloud hosting, the load is balanced across a cluster of multiple servers. The information and applications contained on those servers are mirrored across the whole cluster, meaning that if an individual server goes down, there is no lost information or downtime. Because of this redundancy, cloud hosting is much more elastic and resilient. Problems with one website or application are unlikely to affect your bandwidth or performance.
They promise huge space and bandwidth because they know most customers don't use as nearly as they signed up with their hosting account. But if you really need an amount of space or bandwidth you thought you were entitled to, there might be a problem.
I can point out that personal website hosting is a booming business. People everywhere are building websites to post precious wedding pictures, baby pictures, family video clips, party invitations, personal blogs and more. You don't need to be an expert to pull this of either.