fourm member has pretty much covered your questions,and I agree with what he has said. Perhaps I can address your query regarding cloud hosting.
Cloud hosting - for those who haven't heard the term - is effectively a way to ensure that as your site's traffic loads alter you can buy in additional resources very rapidly, and with a minimum of fuss. Load-balancing, site security, and hardware resources can be provided by more than one server, so that - in theory at least - you need never run out of space or processing power. In many ways, Cloud hosting is the answer to a commercial site owner's prayers. You get stability and you don't need to bother about the technicalities, your Cloud host will take care of all that.
All this convenience is not without its drawbacks however. Your business transaction data will be stored somewhere in the cloud, but you may not always know exactly where, or how your confidential information is protected as it is moved around in the network. The additional convenience brings with it additional layers of complexity, and you may feel that you are to some extent sacrificing a degree of control.
On balance I feel that Cloud hosting has a great many advantages, and that these probably outweigh the disadvantages, but it isn't really something for a small site in terms if cost-effectiveness. I should stick to conventional shared hosting to begin with if I were you.