Web Hosting can be categorized broadly into two types: virtual server hosting and Dedicated Server Hosting. Small to medium sized business typically choose a virtual server plan where multiple ecommerce web sites are hosted on space within a single server. This service allows you to share a server with others, but your site is further protected or isolated with its own server resources including processor, memory, and disk storage. This arrangement works well for small sites that rely on dynamic generation of content from a backend database, small ecommerce sites, or for customers who wish to manage several separate web sites.The reason that vendors can offer low-priced domain hosting for virtual private servers is because the customers look the same and require a set of web services that are essentially identical from site to site. Webhosting vendors who are able to package similar services across a huge volume of customers most effectively are generally the most successful since they can capture substantial economies of scale.Dedicated hosting on the other hand is an option for mid- to large-sized businesses that require or desire the flexibility that comes with dedicated servers. While more expensive, this type of plan generally provides a higher level of security, support, and maintenance with a guaranteed level of availability. Offering this type of guarantee generally reflects a level of redundancy within the vendor’s data-center operations that severely decreases the chances of downtime or removes the risk all together. Depending on the vendor’s plan, flexibility means you can write and run your own custom scripts or applications and even use a content management system to manage the web site but not worry about managing the network, server hardware, or operating system.

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