There are hundreds of web hosting companies, choosing the right host is crucial to the success of your website or online business. Reliability, speed, and support should be taken into account, as well as your budget.
Shared hosting plans are very affordable and usually pretty reliable. With shared hosting your site sits on a single Web server with sometimes hundreds of other sites. Complications only arise if you are running server intensive web applications. But for hosting lower to medium traffic websites or blogs, shared hosting is the cheapest solution.
Virtual Private Servers, also known as “VPS Hosting” or “Virtual Dedicated Server” is a hosting setup that sits between shared hosting and dedicated servers in terms of power and price. The server is split between fewer accounts and you have more access to system resources and more control over your hosting environment. VPS hosting is recommended for medium to high traffic websites, and web applications that require more system resources.
Dedicated Servers are entire physical servers that are available for rent. With dedicated servers you have full administrative access to the machine, with full control over the exact configuration of your web server and its installed applications. Dedicated servers are ideal if you’re running a very high-traffic website (or group of sites) or server intensive web applications.
If you are setting up a simple website, or a blog shared hosting will work fine and is the least expensive. If you prepay, you can find hosting for ony a few dollars a month.
If your website receives larger amounts or traffic, or you have several sites and you need more control over server configurations, a VPS is the next step up from shared hosting and should work fine for most situations.
Dedicated servers are the most expensive of the bunch, don't worry about dedicated servers until you absolutely need one. You'll know when the time comes.