There are three basic types of hosting…
Web Hosting (Shared)
Shared Hosting is very much like an apartment where server resources such as CPU, RAM, Disks and Bandwidth are shared among many tenants. Restrictions are placed so that no user can use more than allocated resources, restricting him from hampering the performance of other user websites in his neighborhood. Since the resources are shared, the cost for shared web hosting is cheap and affordable.
Virtual Private Server (VPS)
If shared web hosting is like an apartment complex, VPS is more like a condo/townhome. You’ll enjoy upgraded resources, more privacy AND you’ll be sharing them with much fewer people. This gives you more power, flexibility and control, but it also costs a little more. It is an intermediate solution for people looking for upgrading from shared hosting, but do not want to invest huge amounts in dedicated server.
This is exactly what it sounds like – a single-tenant machine that’s dedicated to you and you alone – which makes it the ultra-modern single family home in our analogy, where you as an owner get 100% of your Dedicated server, thus not sharing it with any other customer. You get 100% your privacy, accessibility and resources.It’s the most costly option, but only high-traffic, resource-intensive websites really need it.