If you want your website to become a success, there are important factors to consider, and the kind of hosting account you should get is one of them. You will usually be given a choice between virtual shared hosting and dedicated hosting. Depending on which kind you choose, you can have your own server or share it with other websites, and this determines whether or not you'll get your own IP address. Virtual hosting means that your website will share the same server and IP address with other websites.
On the other hand, a dedicated host will give you exclusive use of one server. It provides for complete control of your hosting solution, including benefits that VPS hosting does not offer. You can install or uninstall programs or update them at any time you want. Dedicated solutions are often times offered to clients that need room for uninhibited growth, that need a solution for intensive websites and for clients that have outgrown a VPS. Virtual server technologies such as Microsoft's Virtual Server 2005 RS take a single physical server and partition it into multiple isolated virtual private servers. These isolated virtual private servers perform as though they each are an independent physical sever, complete with their own emulated hardware, operating system, init scripts, users, software, processes, file systems, etc.
Virtual servers avoid having a shared root directory by providing each virtual server full root access. Virtual servers are increasingly becoming more and more like physical individual servers, with all the similar features like individual IP addresses.
Virtual is the key description here. Thanks to modern technology a Windows VPS, for example is more efficient than a dedicated server since it operates on shared hardware. It is achieved with the aid of modern clever virtualization software that creates and manages a number of 'virtual servers' on a single box. You can treat your virtual server like a dedicated server, as if it has its own network data transfer and a limited memory capacity. You can also fully control specific applications and security. There are pros and cons for virtual hosting. The most obvious benefit of a virtual hosting account is price: it is low. Virtual hosting is a good choice for those who are just starting their online business and whose website doesn't really get a lot of hits. You can even get a free virtual host account from some companies, but these accounts will come with all sorts of advertising on the website. You get what you pay for, but it is possible to find the perfect balance between getting the perfect web hosting account and meeting your budget. It's also important to consider the compatibility of the service with your needs, so if you can afford it you should get the top hosting companies. You need to be prepared before choosing your webhost.