There are three main types of server plans available from the hosting companies, four if you include the special reseller packages that some offer. The kind of server plan you go for will depend on your current and future site needs, so it is a good idea to know what type of plans are available, as well as the advantages and disadvantages of each.

Shared or Virtual Servers

These kinds of plans are where you are given a limited amount of resources to use on a server that is shared. The quotas you are given for this kind of hosting will vary from host to host; typical disk space quotas are around 50Mb, which is often more than enough for a site. This kind of hosting is usually the cheapest option (perhaps with the exception of free web space provided by some ISPs), so you shouldn't really expect great things from sites that are hosted on a shared server.

One of the main problems with hosting on a shared server is the fact that the number of features and technologies available to you will be limited. ASP, PHP and Perl are not always available due to security and stability issues, and if they are you may not have all the modules or components needed for your site to function correctly. JSP support on a shared server is still rare, so if you use it you may need to go for a dedicated server anyway.

Don't forget that your site will not be the only one on the server, so problems with other sites hosted on the same server as yours could cause problems with the speed or even bring your site down all together. Obviously the more sites on a server and the more relaxed the hosts are about the running of custom made scripts, the more likely you are to run into problems.

It would be a good idea to find out in advance how many other sites you can expect to share a server with, and the penalties in place should you ever exceed your disk space or data transfer limits. It is very easy to exceed your data transfer limit, all it takes is for your site to become popular (either with people or an unruly web-bot) and you could find yourself with a huge bill or a site that works on a part time basis.

Hosting your site on a shared server shouldn't be too much of a problem if you are running a low traffic site with static pages, but if you expect your site to get rather busy or complicated then you should really consider a dedicated server of some description.

Dedicated Servers

Setting up a dedicated server is not so easy as renting space on a shared server, but it can do wonders for the health of your site. First of all, you are free to use up all the resources available to you, after all there shouldn't be any sites on the server that you aren't aware of. Having the use of all the processing power of a single computer can make all the difference to a site, particularly if it makes excessive use of databases and other server side technologies.

Having a dedicated server also gives you the freedom (within reason) to do with it as you please. If your site requires JSP support, you can install it yourself (if you opt for a server with remote administration), or get your host to install it for you. This is just the kind of freedom you need if you build your own components and modules, or if you use technologies that are not widely supported.

Another plus point about having a dedicated server is that you can have more than one site on it if you wish. This can be useful to help subsidize the cost, but you should not forget that the more sites on the server, the more things could go wrong.

Having your own dedicated server can be a lot of work, particularly if you have to set up the DNS entries, FTP accounts and mail settings for all the domains that are hosted on it. Some hosting companies will do all the hard work for you; undoubtedly this will be reflected in the price. Be aware of the hidden charges such as making backups, rebooting the machine and other things associated with dedicated hosting that you might not think of at first.

A dedicated server is not for everyone, and is probably overkill for a single simple static website with only a handful of visitors. If your site will be using server side technologies and databases for most of its content, then it would certainly benefit from the extra power it will get from being on its own server.

Co-location Servers

This is just like having a dedicated server, the only difference is that you buy the hardware and set it up yourself, then you just rent the space in the data center and the connections it will have to the Internet.

This really isn't for the beginner. At least with a dedicated server the host will set the server up for you, they are less likely to set up a server for co-location. This option gives you the most freedom in terms of the software that you install, but it is also the most involved. If you are unable to go to the data center and fix the problems yourself, you can expect hefty charges if you get the host to do it for you; backups and reboots are unlikely to be done without attracting a charge.

Co-locating your computer is often far more expensive than just renting a dedicated server directly from your host; it can also be more time consuming. This hosting option is best left to the more technical minded people and is usually not necessary for most sites.

Reseller Hosting

This isn't one of the main types of hosting per se, but it is becoming more and more popular so I guess I'd better say a few words about it. Essentially it is a bit like you becoming an affiliate, only you get discounts in one way or another to get more people to use their servers.

More often than not, the accounts that you are able to resell are on virtual (shared) servers. The way that discounts are applied will vary depending on the host; some will charge you upfront for a reseller account and leave you to sell it on however you like, others will give you a discounted price for each standard plan they offer.

You should be aware that many hosts out there are reselling web space. While this may not be a problem, you should understand that the maintenance of the servers is often beyond the control of a reseller. It would be a good idea to check if the company or person you are renting space off is a reseller or not, then you will know who is responsible should anything go wrong (or you may even wish to host directly with the host they are reselling just to get more features or space).

Reseller accounts can also provide a handy alternative to anyone with more than one site but who cannot afford a dedicated server of their own. Due to the resalable nature of these reseller accounts however, you should remember that the more advanced and busy sites will not be running as fast as they could.