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Cloud server hosting is characterized by the ability to provide hosting services on demand via the Internet from multiple servers. This model utilizes a network of remote servers, which can dynamically allocate resources based on the needs of users. This elasticity allows for easier scalability, as resources can be quickly adjusted to meet varying workloads without the need for physical hardware upgrades.

The design of cloud hosting ensures that applications and services are not tied to a single server, which enhances reliability and performance. If one server encounters issues, the system can automatically shift tasks to other servers in the network, minimizing downtime and maintaining service continuity.

This approach contrasts with the scenario where hosting services are provided by a single server, which does not offer the same resilience and resource management capabilities. Additionally, cloud hosting eliminates the need for on-site hardware, making it more accessible and cost-effective for businesses that prefer to offload server management tasks. It also differs from shared hosting solutions, where multiple customers share the same server resources in a more constrained environment, rather than utilizing a flexible cloud infrastructure.

Thus, the defining characteristic of cloud server hosting is its reliance on multiple servers that offer resources and services on demand through the Internet, which effectively captures the essence of what cloud hosting provides.