With shared web hosting many websites are all hosted on one server. The server space is divided between each user. In a server hundreds or even thousands of websites are present. All the websites utilizes all the resources that are present on the server, such as bandwidth, disc space, processor speed, etc.
Cheap and affordable: It comes at a very affordable price and it is the basic approach for many companies. Lots of companies offer this service at cheap prices and its market share is also high when compared to other hosting options.
Comes devoid of maintenance cost: No maintenance cost is involved and the price is an all inclusive one. One really does not have to bother about server maintenance or the setting up of the server.
With a shared hosting service unlike a dedicated hosting service your website will be launched within 24 hours of purchasing.
Best for small sites: It is one of the best choices available for beginners and first timers.
Resources are limited: As thousands of websites use the same server, the resources are limited. Therefore if one server utilizes maximum of resources the others might be deprived of it and may slowdown. And if a website is problematic others might also be effected. However there are many quality shared web hosting providers that do a quality job of preventing such situations with server resource controls in place.
Dynamic IP address: Some shared hosts provide only a dynamic IP address. A static or dedicated IP address is required if your website does e-commerce transactions. Most companies provide option for a dynamic or static IP address and charge you extra per month for dedicated static IP.
Not suitable for large database e-commerce sites: This is not suitable when it comes to large websites which need lots of server space and receive high amounts of traffic.
Finally there is no doubt that shared web hosting is a great option for the majority of people that want to host a website. There are many high quality, reliable shared hosting companies out there that will not let you down. Shared hosting generally is the best place to start out and if down the road your website happens to grow in size and popularity you may need to upgrade to a VPS (virtual private server) or a dedicated hosting solution.