There are two kinds of hosting services: shared and dedicated.

Shared web hosting is just that – several websites are located on a single server. Since it is split up among several website owners, the price is cheaper than dedicated hosting. The down side is that storage and bandwidth are limited in a shared hosting situation. However, most small to medium size businesses operate their websites on a shared host effectively and efficiently. If you anticipate a few thousand visitors per day or less, shared hosting can be a good choice for your website.

Dedicated web hosting is exactly what it sounds like. One server is used solely for the purpose of hosting one website. If you plan to have an extremely popular website, this option will allow you to host many more visitors than shared web hosting. A dedicated web host is recommended for websites that need high bandwidth requirements or need high storage capacity. Since you are not sharing it with other websites, it all belongs to you on a dedicated server.

While you are researching potential hosting plans, there are a few clues you can look for to determine whether the host is shared or dedicated. Many times the web host will actually say whether it is shared or dedicated. If it does not say, it is generally shared. Just to make sure, look at the price. If it’s cheaper than $80 per month, it is generally a shared web hosting plan.

Other Recommend Sources

http://www.findmyhosting.com/basic-guide-to-web-hosting/