It can be difficult when setting up an online site which type of hosting to purchase.
Shared: You share a server and all its resources with other sites, sometimes 200!! This is the cheapest form of hosting and is usually only useful these days for a small paged static site.
VPS: These days a VPS can be excellent value, this is a virtual server but you physically get the resources all to yourself, so it acts like a dedicated server. This is a good option for busy blogs, membership sites, forums, ecommerce, etc.
Dedicated: Always go for a VPS first, when you out grow that then you move to a dedicated server, but I run forums with 100,000's of posts on VPS with no problems.
Shared Web Hosting
Shared web hosting is similar to the flat I live in, everyone has their space (within their flat) but access to the GYM, swimming pool, lift and stairs are shared amongst the people residing in the block.
The space is dependent on the rent per month, but the resources are unlimited. Some web hosts charge for parked domains (car parking space) add-on domains (additional parking space). Other resources youll find youll be sharing with sometimes thousands of other users of the server are CPU time, memory and disk space. The term oversold is used often within the industry because many servers are oversold and overly used resulting in many servers downtime issues because of the bandwidth strains the owner of the server puts the server under. Youll find these owners are usually selling their space at unlimited space, bandwidth and resources on eBay for 0.99 cents.
Virtually Private Servers
Virtually private severs or VPS Hosting range from company to company. 256MB, 512MB, 1024MB (1GB) is similar to owning a penthouse at Deansgate Beetham Tower. Youll be paying a premium for exclusive rights to your own space. Youre responsible for the maintenance and up-keep of your property and repairs within the penthouse. The upside is the lack of neighbours. With VPS servers youll find these arent so oversold but rather undersold and the downtime is very minimal, the servers only ever going down when essential maintenance is provided.
On a Virtually Private Server youre allocated resources that are not shared by other users of the server. Although the CPU time and memory (RAM) are shared across the server, however portions of those resources are always dedicated to each user of the server. Therefore allowing for more flexibility and power over a shared web hosting account.
Dedicated Hosting
Well compare dedicated hosting to owning the Beetham Tower in its fullest. Youll be responsible for absolutely everything, from renting it out (if one wishes to become a web host themselves) root access to the server. No one else resides on the server and the resources are fully yours to exploit. The downside is that youll need some understanding of how servers are ran however there are many web hosting providers that can manage your dedicated server with you.
Moving from a block of flats to a penthouse, youll find the average price for undersold shared web hosting is at around £2.50 for 50MB of space and bandwidth. Regardless of the price your website will be hosted on a server and dependent on the resources your website requires depends on if youre going to need to move out. Shared web hosting can be great for users of WordPress and Joomla and usually a good few e-mail accounts to go round (although I recommend my clients to sign-up to Google Business Apps)
Time To Upgrade?
When your website starts to grow it is important to consider moving from shared to VPS, the new traffic requirements may slow your server down. A real life example; five years ago when I were 13 I opened a chat room site using PHPChat, and with the help of an online community I had managed to attract just over 30 people. However after a few lines of chatting, the server crashed. It would have been at this point I should have invested in a VPS. However if my chat room attracted a few hundred people, it would had been necessary to acquire a dedicated server.
Hope this has cleared up the difference between the various types of web hosting solutions out there.