Cloud computing can help host an application in a scalable and cost-effective way, particularly with Amazon Web Services (AWS) offering secure cloud hosting with Redis. To optimize performance and reduce latency issues, using HVM-enabled instances can help reduce fork times and run multiple Redis servers on different cores. However, enabling swapping can increase latency due to disk I/O operations, which can be mitigated by configuring Linux settings in `/etc/sysctl.conf`. Additionally, using large EBS volumes, RAID configurations, or delegating persistence can improve performance when persisting data to EBS. It's also essential to review application persistence requirements and tune Redis' persistency accordingly. Furthermore, considering the size of the dataset and provisioning for extra memory requirements can help prevent running out of memory. By efficiently utilizing EC2 instances with multiple cores, starting one Redis process per core or sharding data between servers can improve performance.