You might have heard about buying web space or hosting for having website online. Well before buying service from any hosting provider you must understand the need of your business and choose the hosting wisely which suit best with your requirement. So you need to have knowledge of types of hosting available and its difference.
To make your website live, you need to have your own server and disk space on which you can store data of your website ( files, images, videos ) and can transfer that data to display on your website when someone types your website name in the browser. So when someone enters website name, browser sends requests to your server and according to that server transfer data from your storage.
It is very costly to buy your own server, so when you are buying services of any hosting company, is considered as shared hosting. You pay monthly or yearly payment to use its services as per your requirement. In shared server all the websites who use the same third party service , used to share bandwidth and space.
If you have a large website or business on which you are expecting huge traffic, you need your own private server for data storage and transfer which is called as dedicated hosting, In this type of hosting, no other website shares server space with your website. Hence it is costly so it is suitable for large business only.
So according to above criteria, you need to choose kind of hosting for your business.