You should consider what kind of hosting account you'll be getting if you want to run a website successfully. You will usually be given a choice between virtual shared hosting and dedicated hosting. The basic difference between the two types of accounts is whether a site has its own server or shares one with other web sites, which determines whether that site has its own IP address or shares one with other sites. Virtual hosting means that your website will share the same server and IP address with other websites.
In a dedicated hosting situation, a single machine is "dedicated" to a single customer. You get complete control over your hosting system, and you can get benefits that you would otherwise not get from a virtual server. With dedicated servers, you can change your programs or add/remove applications at will. 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. You can separate one server into several isolated virtual private servers with the help of different technologies, such as Microsoft Virtual Server 2005 RS. 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.
Full root access provided by each virtual server makes sure that users aren't sharing a root directory. With all the features of a virtual server, like independent IP addresses, port numbers, tables, and routing rules, you get the feeling of security that comes with an individual physical server.
You can say that the key distinction between the two is that one is "virtual" while the other is not. Thanks to modern technology a Windows VPS, for example is more efficient than a dedicated server since it operates on shared hardware. A single box can be split into multiple virtual servers with the help of modern virtualization software. Each 'virtual server' appears to the customer's applications, databases and so forth as if it really is a dedicated server, which includes a predetermined memory size, disk size and network data transfer. Users can even have full control over the environment of the website for specific applications and security. There are pros and cons for virtual hosting. One of the main advantages of virtual hosting is that it's cheaper. 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. There are even free virtual host accounts available, although you'll most likely have to put up with the advertising on the site from the host. You should keep in mind that you get what you pay for, but you shouldn't have to sacrifice quality for price. 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.