When you choose cloud hosted controllers, they are fully managed by you. Cisco will handle underlying complexity of managing cloud infrastructure itself for you. So in this case all of your controllers are hosted in the cloud of your choice and you will get vManage, vBond and vSmart in a form of SaaS (in contrast with cloud underlying infa - IaaS). When asking for cloud hosted controllers, you may ask for your controllers to be hosted in particular IaaS DC (e.g. for GDPR reasons you may ask to deploy your controllers in Europe)