Cloud hosting delivers scalable infrastructure on-demand through virtualized resources distributed across remote data centers, decoupling applications from physical hardware limitations.
What it means? You as a developer create the software and test it on your oun local hardware until it works. After this you deploy the application on a remote server. The remote server may be a dedicated machine or a virtual machine that run in a data center.
Remember: “There is no cloud. It’s just someone else’s computer.”
— Stacy Clark (often attributed to various systems engineers and industry figures)