Cloudinary is a site that provides image hosting and editing/formatting. The free version has great features and is all most people would need.
Cloudinary lets you use a custom URL to format and edit your images online. You upload your image and then access them using the special URL based on the formatting you want. The original photo stays online and you can request different formats based on your needs. You can even automatically combine multiple images into one.
This makes it very easy to manipulate and use images in your websites or blogs.
The free version has 95% of the features the paid versions do. The main difference is limits. The free version limits you to 500MB of storage, 50,000 images, and 1,000 MB of monthly bandwith. That's a lot for most users.
Check it out and see how it will work for you. http://cloudinary.com
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