The most common form of web hosting is shared hosting. In this scenario, you rent a space on a companies server, for your website to live.
Shared hosting servers can store up to 1000’s of websites on a server. They employ systems engineers to make sure that all websites run smoothly.
Shared hosting is more affordable for most businesses.
Dedicated hosting on the other hand requires that you rent the entire web server where your website lives.
Management of the server is controlled by you.
Dedicated servers are expensive. They are mostly used by big companies.