Also known as Virtual Hosting, Shared Hosting is the practice of sharing a physical server among multiple customers to reduce the overall cost.
By far the most widespread and popular type of hosting, it allows hosting providers to provision high end, expensive servers, and share the cost of the infrastructure, bandwidth, power and staffing among several hundred end users.
Benefits of shared hosting include the very low cost, easy of use and management, and the fact that the provider will maintain the server hardware and operating system, and very little technical knowledge is required to get up and running.
Disadvantages include the fact that, as the resources are shared, another site on the same machine can impact the service experience of all users, security is much harder to guarantee, and users have limited access to customise features of the environment. [Such requirements are met by using Dedicated Hosting].