What does it mean that my VPS is in your Cloud
What is a VPS? That's a good place to start. A VPS is a Virtual Private Server. Virtual means the server is not a physical piece of hardware. In our case, a very powerful "host" machine is virtualized so that smaller VPS's (aka vm's) can be run separately, privately and uniquely within the 'host' machine.
Some hosts do this with physical host machines that are not part of a high availability fail-over cluster. This would mean they are VPS's, but not in a Cloud. The Cloud part means that there are several 'host' machines setup in a highly available fail-over cluster that supports the VPS.
If the VPS was on a physical host not in a HA (highly available) cluster, then if that host had any hardware problems, the vm's on that 'host' machine are down.
However with our infrastructure, we do set everything up in a HA cluster so that if one of the 'host' machines has a problem, the vm (VPS) gets live migrated to another 'host' in the HA cluster. This is the ultimate setup for high availability. This is using our own in house Cloud system... not an external Cloud.