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Applications on cloud can be accessed from anywhere through the Internet just like any web hosting. So what is the difference? Is there any difference in the client server and cloud computing architecture?

Thanx.

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Cloud hosting is an abstraction from a prebuilt computer cluster providing you with arguably limitless computing power which in the end is presented to you as a single virtual unit, which results in a long list of benefits amongst which are scalability at a single click, risks protection and etc. In contrast in classic hosting all you get is at maximum a single physical machine, having to deal with all questions of risks and scalability yourself.

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does it mean that we have to initially lease out or buy different servers as per the need in the traditional system and in cloud computing we don't have to worry about it as it is scalable and pay only as per usage instead of an initial investment?
Exactly. Although they provide you with different charging options too

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