Shared hosting is a relatively inexpensive service that many business owners use. It stores multiple... clients' websites on the same server. A server is a sophisticated computer that hosts website content and delivers it to Internet users. It also processes interactive scripts on websites. Shared hosting customers typically use a single IP address as well. Like any service, it has a number of important pros and cons.

The majority of hosting companies sell shared hosting subscriptions. Many of them cost less than $5 per month. Providers can maintain low prices because thousands of small websites will fit on a single server. This reduces the amount of money they have to spend on equipment, energy and maintenance. Free Web hosts offer a form of shared hosting that uses subdomains to let members share a single domain name.

Although websites must share the same server, most Web hosts provide plenty of storage space and bandwidth. Many businesses don't need the greater resources of a dedicated server. However, shared hosting is not as versatile. Providers impose more limitations on the types of software that shared hosting customers can install. Some hosts also restrict the Web content or files that users may upload to the server.

Another disadvantage of shared hosting is that businesses can be punished for the actions of other people that use the same server. If a government or ISP wants to block one of the websites that share a single server, it may have to ban all of them. Sharing a server also makes the system slightly less reliable. When a hacker attacks one of the websites, the entire server could stop functioning for a time.

Nonetheless, shared hosting costs significantly less than using a dedicated server. It also provides a fast, easy way to establish a new website. A webmaster may compromise by paying an extra fee for shared hosting with a dedicated IP address. This service still requires multiple customers to share a server. However, they can't be penalized for using the same IP address as an illegal website.

Generally, dedicated hosting only proves necessary for large companies with websites that receive millions of visitors. Shared servers remain more than adequate for most websites. This type of hosting comes in many varieties; some providers use renewable energy, donate a portion of their income to charity or operate as nonprofit organizations. Other companies specialize in hosting certain types of websites.