Error Installing Solo Artist Bundle
Design and Skin Customization
Just ignore the word "cloud" - it's used so liberally for almost everything now (since a lot of companies know it is a buzzword). Digital Ocean is just a VPS hosting provider - nothing you do there is stored "in the cloud". The reason they use "Cloud Hosting" is that some developers like to spin up lots of small VPS instances and "scale" their application across multiple VPS servers (i.e. put the web server on one VPS, the database on another, mail system on another, etc.) - this becomes what is known as a "private cloud" of servers.
They are just a VPS hosting provider however.
$17.95 a month sounds good, but just make sure and check them out well - there are A LOT of small dedicated and VPS providers that try to be the lowest cost, but they end up sacrificing a lot in ways of support, network, etc. - and a lot of them close down rather quickly so you could be scrambling to move hosts if they decide to fold. Make sure you and read user reviews (web hosting talk is a good site).
Hope this helps!