In shared hosting, also referred to as virtual hosting, many websites reside on the same web server, sharing server resources as well as sharing the cost of operating the server. Typically offered at lower prices than dedicated hosting, shared hosting is a more economical approach for small businesses and individual consumers with minimal bandwidth and storage space requirements. Typically, each individual website in a shared hosting environment resides on its own partition or section of the server to separate it from the other sites on the server. Shared hosting service necessarily includes system administration provided by the host, since server resources and hardware are shared by many individual clients.
Shared hosting usually employs a web-based user control panel system, like cPanel, Plesk, or any of a number of other control panel products, or the hosting provider might develop proprietary control panel of its own devising.
There are two types of shared hosting, IP-based and name-based (some control panels support a mix of both methods on the same server). In name-based virtual hosting, or shared IP hosting, the virtual hosts can serve multiple hostnames on a single server with a single IP address. With IP-based virtual hosting, which is also known dedicated IP hosting, each virtual host has its own, different IP address.