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What is Web Hosting and How Does it Work?

Last Update: October 2024

Written by Leeron Hoory
Tech and Finance Specialist
|
Reviewed by Noa Kaufman
Business Heroes Staff

Every website on the internet is hosted by a web hosting provider. Choosing the right web hosting provider and type of web hosting is a crucial part of ensuring your business’s website will perform properly. 

This article will explain how web hosting works, the different options available and how to choose the right one, whether you’re just getting started with your business or have been operating for years. 

What Is Web Hosting?

Web hosting companies store the files and data associated with your website (such as JPEGs, text and HTML) and provide the infrastructure, technology, and services required for your website to be accessible to the public. 

How Does Web Hosting Work?

Have you ever thought about how it’s possible to access your favorite websites on the internet? The answer to how this all works is complicated, but web hosting is a crucial part of connecting your website to the internet at large. 

Web hosting is like renting a space on the internet where your website is accessible to people who want to view it. When you build a website, you’ll choose a website hosting provider to and a domain name, which is what people will use to find your website. 

When you sign up for a domain name with a web hosting provider, you’ll be included in a DNS (Domain Name System), a registry that connects domain names to IP addresses (the unique addresses of servers). 

Here’s a brief description of how this process works from the perspective of a user accessing your website: 

  1. Typing the Domain: The first step is that a website user types your domain name into their browser.

  2. DNS Query: The next step is that your browser performs a DNS query. Domain names are stored in the Domain Name System (DNS) and every time a user types in your domain name, their browser (Safari or Firefox, for example) queries a DNS server to find the corresponding IP address for your domain.

  3. IP Address Retrieval: The DNS server responds with the IP address of your web host’s server.

  4. Accessing the Server: The browser then uses this IP address to connect to the server, retrieve the website files, and display the site to the user.

This process happens every time you access a website. So while it sounds technical (and it is!), the good news is that you don’t need to understand all the details of this process to build a website. 

The crucial part you need to know is that web hosting is essential for getting your website live and accessible on the internet. The whole process of setting up web hosting is streamlined by providers and can be done in less than one hour. 

Types of Web Hosting

There are different types of web hosting. The best choice for your business websites will depend on how much traffic your website has, what kind of content you’re hosting on your website and any security concerns you might have. 

  1. Shared Hosting

When you choose shared hosting, it means that you’ll be sharing a web server with other websites. Shared hosting is best for smaller businesses and personal websites. Because you are sharing, it is also more cost-effective. 

If you’re a business owner who’s looking to get started putting up a website online, this is likely the best option for you. Shared hosting plans also allow you to host multiple websites on a single server, making it a cost-effective solution for businesses with several sites.

The biggest benefit of shared hosting is that it’s much more affordable than private hosting. However, this may mean that if your website might not have the capacity for higher amounts of web traffic. If this happens you can always scale your hosting packages down the line.

  1. VPS (Virtual Private Server) Hosting

VPS (Virtual Private Server) hosting is a physical server divided into multiple virtual servers. Each virtual server has its own dedicated resources like storage. 

VPS can handle higher traffic than shared hosting without users experiencing slowdowns. Additionally, since your server is isolated, it reduces the security risks of shared hosting. 

VPS may be a good option for growing businesses that have increased traffic demands and require a higher level of hosting capacity. 

  1. Dedicated Hosting

Dedicated hosting is a type of web hosting where you rent an entire physical server for your website. This type of hosting is more expensive than VPS and is typically the best fit for very high-traffic websites.
Dedicated hosting is best suited for large businesses, websites with high traffic and those who want full control over their server. 

  1. Cloud Hosting

Cloud hosting uses a network of web hosts throughout the cloud. Cloud hosting allows you to pay as you go for the hosting you use. Cloud hosting is a popular choice and the fastest growing type of web hosting, with a compound annual growth rate of 18%.

Because it relies on multiple networks, there are multiple backup options. It is an ideal choice for websites with variable traffic, such as e-commerce businesses or companies anticipating seasonal spikes. 

  1. WordPress Hosting

Many web hosts offer WordPress hosting, which is specifically optimized for WordPress websites. WordPress is a very popular open-source website builder that is currently being used by 43% of all websites, according to Web Technology Surveys

These optimizations include automatic updates for WordPress themes and plug-ins and built-in caching solutions. If you are hosting your website on WordPress, or run an e-commerce website with WooCommerce, this type of hosting will be a good option. 

How to Choose the Right Web Hosting Service

Choosing the right web hosting service is an important part of making sure your website is functional, without overspending. You’ll want to identify your website needs, including your traffic expectations, performance and storage requirements. 

Then, you’ll want to evaluate the kind of content you’ll be hosting. Websites with a lot of videos or high content demands, for example, may require more storage. 

There are many different web hosting providers on the market, so it’s a good idea to compare prices so that you get the best deal. However, each provider structures their pricing differently, so make sure you are factoring in the specific features you need into the overall price. 

For example, some providers charge extra for email accounts and an SSL certificate (which is necessary), while others include it. Consider the type of customer support and technical support each provider offers as well — 24/7 support with email, live chat and phone is ideal. 

You’ll also want to make sure the provider has a reliable uptime. Most promise 99.9% uptime. 

Scalability is another important component, because if your traffic demands chance, you want the peace of mind of knowing that you can easily change plans. 

Choosing a reliable and reputable web hosting service is critical for website performance. If you’re not sure where to get started, you can look to the current most popular hosts. 

For example, GoDaddy is one of the most popular web hosts in the world and has registered more than 84 million domain names for over 20 million customers. 

Website performance impacts how your potential customers experience your website, such as how quickly the website loads, and whether there are any service interruptions. 

There are also SEO advantages to good hosting performance. Quick page loading speed helps your website be prioritized by search engines. 

Challenges and Common Issues with Web Hosting

Some of the most common challenges website users face when it comes to web hosting include unexpected downtime, limited storage capacity, poor customer service, backup issues and inability to scale. 

You can resolve these issues by choosing a reputable web host, making sure the host you choose has scalable options, and testing out the customer support before committing to a plan. 

Choose the Right Web Host For Your Business Needs, With an Option to Scale 

Choosing a web host is one step in the process of getting your website up and running. The main factors to pay attention to are to make sure your web host is reliable, that you choose a web hosting plan that can meet your traffic demands and that you choose a web host that provides scalable options if your traffic demands change down the line.

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About Leeron Hoory: Tech and Finance Specialist


Leeron, based in New York City, writes about technology and finance for top publications like Forbes Advisor, Quartz, and Popular Mechanics. With her expertise, Leeron simplifies complex subjects, guiding you through the latest trends and strategies to boost your business.

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