Shared web hosting is the oldest type of hosting and it is also the most popular. Shared web hosting is cheap and it can be very reliable, if a webmaster has chosen a good web hosting provider.
What Is Shared Hosting?

Shared hosting is this type of web hosting in which many users have accounts (and each account can contain multiple sites) on the same server. This way server resources are shared between tens and even hundreds of sites and the result is that the cost per hosting a site is very low – often around $1 a month or even less.

For many users shared hosting is the only type of web hosting. This is not surprising because almost any web hosting provider has shared hosting plans and shared hosting is really popular. For many webmasters, especially those of small and midsized sites, sharing hosting is all they need.

Advantages of Shared Hosting

The fact that shared hosting is the most popular type of a web hosting plan certainly implies that shared hosting must have some special benefits. Yes, this is so and the main advantages of shared hosting are these:
Shared Web Hosting is the Cheapest Type of Web Hosting

There is no doubt that the affordable price of shared web hosting is the main reason why it is the most popular type of hosting. Shared hosting is hundreds of times cheaper than dedicated hosting, yet this doesn't mean that dedicated hosting is hundred of times better.
Shared Web Hosting Requires Less Skills and Knowledge than Dedicated Hosting

Shared hosting is relatively easy to use because a webmaster doesn't have to deal with server setup, as is the case with unmanaged dedicated hosting and reseller hosting. With shared hosting a webmaster has his or her user area and no access to the server software or the operating system of the computer where the sites are hosted.

Disadvantages of Shared Hosting

For those webmasters, who need more bandwidth and more freedom in administering their hosting environment, shared hosting is not the best option because it is exactly these two features, which can be considered as the main disadvantages of shared hosting.
Shared Hosting Comes With Low Space and Bandwidth

All equal, shared hosting offers provide no more than 10-20GB of bandwidth a month and times less storage space. Of course, for a small site these amounts are more than necessary and if a site outgrows these provisions, migrating to a dedicated server is always an option.Also, generally speaking with shared hosting there is no minimal guaranteed bandwidth per user, which means that if some of the sites on the shared server are bandwidth monsters, this will affect all the other sites and they can become very slow.
Shared Hosting Doesn't Give Much Freedom in Administering the Server Where the Site is Hosted

As far as administration opportunities are concerned, shared hosting is the least flexible type of hosting. There are many options a webmaster can change but most of the vital ones are left outside of his or her reach. Still, in many cases this is actually a good thing because an inexperienced webmaster can make a real mess and compromise the security of the whole server, while applying the trial and error approach to server configuration.

Shared web hosting might have its limitations but it is a great offer for its price. Shared web hosting is not only the cheapest web hosting package but it is also one of the most reliable (because it is the pros at the web hosting company who administer the servers and not the webmasters themselves). This is why it is a safe bet to say that shared web hosting will continue to be the most popular type of web hosting in the years to come.

SOURCE:-
http://webmasterresources.suite101.com/article.cfm/shared-web-hosting-is-cheap-and-reliable

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