Cloud hosting: This type of hosting is slightly more expensive than shared hosting (similarly priced to VPS hosting). Rather than using a single server to store and load your site, a cloud system distributes resources across many different computers for faster response times. However, this model typically doesn’t give you root access, and its distributed structure presents fundamental security challenges.
To break things down a bit, cloud VPS (Virtual Private Server) hosting is when a web hosting provider takes one massive server and partitions it up so that it can have several servers on it, each of which can run its own operating system and can be re-booted independently.  Sounds simple enough.  So what is the difference between managed VPS and unmanaged VPS?
So that could be either a virtual machine - an operating system running inside another operating system, or a virtual private server - you rent a virtual server from a company, so you have your own internet-facing server running 24/7 relatively cheap (since it's not a real server, but one of many virtual server running on an actual server). I think he might have meant the later, since you'd have to run a snartnofe (btw I love that name) non stop to benefit from it.
Think of it like buying a pre-built computer versus building your own computer. When you buy a pre-built computer, it comes with everything already decided for you. You bring it home, plug it in, and turn it on and all the software has already been installed. On the other hand, when you build your own system you get to choose each piece of hardware, put it together, select your operating system, and install your own software. Building your own system takes more work, and you cannot simply turn it on and begin using it. But, in exchange for this additional effort, you get self-determination and control over your hardware and software. You can choose your favorite operating system and the apps you want to install, no longer beholden to the manufacturer’s one-size-fits-all selections. Similarly, with a Self-Managed VPS, you have to do some initial set-up and later management. Yet, you get to choose the software configuration you want to perfectly suit your operating specifications.
Hostinger gives you the chance to build a project the way you want it. Our VPS hosting allows the use of multiple kernels and offers of a wide range of operating systems ready to install in 1-click. Simple, but powerful management tools will let you maximize the potential of your Virtual Private Server. Serious Hardware, serious Linux Optimization and a team of experts maintaining it around the clock.
Managed VPS provides an excellent solution for most users who would prefer to have an expert manage their server while the customer focuses more exclusively on their business, their websites, and their clients. Not everyone who uses a Managed VPS lacks technical savvy; far from it! Some prefer this solution because it requires less effort to set-up, requires less monitoring, and tends to “just work” with little or no effort.

Self-Managed VPS customers have to make sure everything works the way they configure them and perform updates themselves. Obviously, this is not a job for novice users. It is probably not even a job for someone who does not feel comfortable managing services and scripts themselves. If in doubt, you should probably stick with a Managed VPS product and focus, instead, on growing your business and optimizing your site.
Virtual Private Server(VPS) is popular because of the advanced requirements from medium to large websites. If you have a website which is becoming more and more popular and requires more server and bandwidth resources, you may want to upgrade from a shared hosting to VPS hosting. See more details about VPS hosting features & FAQs. Here we will compare two of the most popular VPS hosting services and types – Managed VPS and Unmanaged VPS.
The force driving server virtualization is similar to that which led to the development of time-sharing and multiprogramming in the past. Although the resources are still shared, as under the time-sharing model, virtualization provides a higher level of security, dependent on the type of virtualization used, as the individual virtual servers are mostly isolated from each other and may run their own full-fledged operating system which can be independently rebooted as a virtual instance.