Shared hosting is a web service where several websites are hosted from the same web server. In other words, shared hosting is a type of hosting plan where your site shares resources with other accounts on the same server. The service provider has less costs this way. This is why they manage to keep the prices fairly low. People looking for the cheapest hosting solutions will most of the time choose a shared hosting web service.
How does shared hosting work from the provider side?
Why would a provider want to offer their resources to multiple clients? The main reason is, low cost. By hosting more than one website on the same web server, you can charge more money without any cost increase. The provider has the same amount of costs they would have when they would offer the server to just one single client. Obviously, the provider can’t charge the same monthly fee on a shared hosting server as a dedicated hosting server, as the resources are shared, but with enough clients on the server, more money will come in. So you see, shared hosting is an interesting option for service providers where they can do some good business.
Are there any risks to offer shared hosting?
As there is only one server hosting multiple websites, the resources are limited when this server is shared. WIth dedicated hosting the whole web server is for that one client or website, and nobody can snoop any resources away. With shared hosting there is always the risk of overcapacity. If all websites that are on the same server experience heavy traffic at the same time, the server will not be able to handle it.
So why risk this? It is a probability game. The odds of all websites experiencing heavy traffic at the same time are so low that it is worth ‘overselling’ the infrastructure. So when one website is generating a lot of traffic, all resources can be directed that way. When traffic goes down and another page is gaining traction, the resources focus on the latter. This way, with the limited amount of resources a provider can still offer high quality shared hosting.
Why would clients choose this type of hosting?
As mentioned before, the price is a great selling point for shared hosting. Nobody wants to pay too much, so if there is a cheap option, it will always be an interesting one. Since the prices of shared hosting can be drastically lower than the other forms of hosting, offering this option will gain a provider lots of customers.
But there are other reasons that people will want to choose a shared hosting web server instead of a dedicated one. Many (possible) clients only have one website they want to have online, and have zero experience with having a website. They don’t want the hassle of having to learn how to host their website. A large part of customers just want to have their website online. If they can make use of pre-installed programs or a user friendly web interface to keep their page online, they are more than happy. Server maintenance and other server related issues are the last thing on their mind.
So besides the low cost of a shared hosting web server, the ease of use is an important factor for people to choose this hosting option. If you offer shared hosting as a provider, make sure to mention the user friendliness of your service as a selling point, it might push that possible client in the right direction.
Openprovider and shared hosting
At Openprovider we focus on selling the domain names. Since we have many resellers as customers that already have their hosting sorted, or even take care of the hosting themselves, we decided to focus our energy on where our speciality lies. With our membership plans you get a discount on Plesk, an innovative hosting control panel.