Two type of Hosting:
a) Shared hosting:
here your and other website owners shared one server. This includes sharing the physical server and the software applications within the server.
Shared hosting services are affordable because the cost to operate the server is shared between you and these other owners.
b) Dedicated hosting:
here you have the entire web server to yourself. This allows for faster performance, as you have all the server’s resources entirely, without sharing with other website owners.
This is a good choice for websites that requires a lot of system resources, or need a higher level of security.