Web Hosting has a few categories which are: Shared Hosting, VPS Hosting and Dedicated Hosting.
Many people have difficulties identifying what Shared, VPS and Dedicated Hosting means. Please read below on an explanation on all 3 categories of Web Hosting.
Shared Hosting – Think of you in an apartment with 50-100 other people in the same building as you. You all share the same resources in the same apartment. If someone is using up too much electricity, it can affect everyone in the building. Same thing applies with a Shared Host – if someone is using up a lot of resources in the plan, it will affect the whole server everyone is on making the server load slow.
Also, many people ask what is the difference between Personal Class and Business Class plans. The primary difference is that Business Class servers are loaded with significantly less clients, typically around 1/4 the clients of a Personal Class server. This lends to a substantial increase in performance and reliability. Additionally, the Business Class plan offers free Add-Ons such as a free Dedicated IP and SSL certificate.
VPS (Virtual Private Server) Hosting – Think of you in a Condo. Condos have more space and are separated from each other than apartments are. You share the Condo with 10-20 people. Your server will still load fantastic but of course if some people are using up too much electricity, it can affect the other people in the same Condo. Same thing applies with a VPS Host – If someone gets DDoSed, that affects the whole node with 10-20 people that are on it as well. It depends on the hardware you use, but it’s usually around 10-25 people or below that. So your account gets disabled if you use up a lot of resources on the same node as you’re on with other customers.
Dedicated Hosting – Think of you in a house. You have all that land around your house. That is all dedicated to you. No one shares your property. For a Dedicated Host- If you use up a lot of resources, you would simply have to upgrade your plan as your plan is being outgrown. No one else is on your server. It’s all your server. You may have a lot of traffic, or your codings, plugins, MYSQL, etc. are using up a lot of resources on your Dedicated Server so you can look into tuning your server so you may need to upgrade your plan but this is basically what a Dedicated Hosting is.