If you have a website then you have a Web host. Subsequently, if you have a Web host your website utilizes either a shared or dedicated hosting package.
In the shared-hosting
scenario many websites are placed on one server. This option is
beneficial to the host because the overall costs and maintenance are
distributed among many website owners. Website owners gain because the cost of hosting in a shared vs. dedicated environment
is usually much less than if the entire resources of the server were
dedicated to hosting a single site. The site owner
also benefits because server maintenance and administration are
handled by the host. In some instances,
the site owner has the option to manage several aspects of his or her
site via a control panel which is essentially a web-based
interface simplifying common website management tasks such as creating subdomains as well as adding new website and email accounts.

While there are obvious advantages to
shared hosting there are also important downsides to consider. Let
us start with the number of sites hosted on a single server which typically ranges from approximately 10 sites to more than 1,000 in some instances. The result of overloading a server with
too many sites is the impact on performance caused by increased
competition for the server resources. Another issue faced by many site
owners who are hosted on a shared server are the limitations placed on
the amount of disk space, data transfers, email addresses and domains that they can have. There are also restrictions related to running scripts and databases that use quite a bit of CPU (processing power). This type of disk activity makes for reduced performance for all sites on the server.
A third issue to consider is general stability and security. If
your site happens to be hosted on a poorly managed server a busy or
rouge site could conceivably dominate the server’s resources and cause
an outage for all sites hosted on the server. The same is
true if one site on the server is subject to a cyber-attack which can
impact all customers. Finally, if a site on a shared server is
compromised that security breach can pose a serious risk to the other sites too.
Dedicated Hosting
Dedicated hosting is the polar opposite of shared hosting in that the entire server's resources are ‘dedicated’ to hosting the customers' site(s).
This option effectively eliminates most pitfalls associated with
shared hosting. With dedicated hosting a customer purchases the
use of the whole computer and some bandwidth -- the amount of data your server can send or receive within a given month.
Hosting a website in a dedicated environment is valuable
to the website owner because it offers much more flexibility than
shared hosting. The key difference is that website owners
typically have a choice of hardware, operating system, control panel
and whether they want managed or unmanaged support. “Support” usually
comes in the form of a ticket submission system where the host manages and monitors the server. Managed support generally results
in additional fees. Essentially, dedicated hosting requires site
owners/Web managers to take complete responsibility for the
configuration and management of the server where their site resides.
Another benefit is that the host is
responsible for replacing failed hardware and addressing any issues not
associated with your access to the equipment. Such issues include ensuring
that client accounts on the server are housed in a secure environment
and that there is sufficient backup power available if a power outage occurs. Such ensurance would help confirm that the network connections are reliable.
Just as in shared hosting, there are pitfalls
of dedicated hosting. First and foremost, dedicated hosting
solutions are significantly more expensive. Prices usually range
from $50 to more than $1,000 per month. Dedicated servers especially unmanaged types
require a significant amount of time and expertise in server
management. You have to be comfortable managing a machine remotely
and recognize how to do things like installing and configuring the services that you plan to offer from your server such as forums, weblogs, chat rooms, etc. These are often developed in relation to databases as well as respective programming and scripting languages such as CGI or SQL. Most hosts offer a basic setup which might include Web and FTP servers.
For server management, dedicated servers are typically setup with (1)
secure shell (SSH) - a telnet-like service that encrypts the data
between the computer you use to manage the server and the server itself
and (2) a Web-based control panel or (3) if hosting on Windows, Remote
Desktop Protocol (RDP) or Terminal Services access.
Finally, when choosing to go dedicated for
hosting your website, timely support is a critical component.
This is true even if you have the skills to manage the server and can
afford the high monthly fees. Consider a website owner who runs an
extremely busy site. That owner makes a change to his or her server on a Friday evening and it interferes with the proper server operation. Since the server is remotely hosted, the website owner cannot simply walk over and reboot the server. The owner has to open a trouble ticket with the host for them to have an on-site technician do it. There are a multitude of real-life examples of website owners who have had their sites inoperable from a few hours to a few days because they overlooked support availability.
When choosing whether to host a site on a dedicated server, keep in mind that it depends mainly on your need for support. If you have the knowledge and skill necessary to install and to configure your own services, unmanaged services may be appropriate.
If you want simplicity where most server configurations are done for
you or with the aid of user-friendly control panels, managed
services may be more suitable. Good luck and happy hosting!
Lee Evans owns and operates LeeWare.com (www.leeware.com), a premier provider of unmanaged virtual dedicated Linux servers.