Before we conclude if the shared web hosting is beneficial for a business or not, first we need to understand what 'Shared web hosting' means.
A shared web hosting is a web hosting service where multiple websites reside on a single web server, sharing the resources of the server together. You may understand it like multiple people living together in a dormitory sharing the resources provided by the dormitory. The people living in the dormitory act as the websites and the dormitory act as the web server which provides the services.
For small businesses with lesser number of users, shared web hosting is a great option as it allows you to host the websites at very affordable prices. However, if the number of users increases, the speed and performance might deteriorate.
Apart from the 'number of users' there is also a bunch of other factors that affect the performance of the web hosting.
Resources consumed
If the hosted websites are bulky and with a lot of data, the traffic handled would be less.
Cache Plugin
Using an optimized cache plugin may help handle the traffic better.
Real time users
The more the users at a time, the less efficiently the website would be handled.
Type of website handled
The type of website hosted also affects the hosting performance. For example, a basic blog website can handle the traffic much more efficiently than a bulky e-commerce website.
Neighbor
If the resources used by the neighboring website are less, the traffic handling would be better and vice versa.
Hosting plan
The hosting plan used also defines how efficiently the traffic can be handled.
Downtime
As you are sharing the servers and resources with other websites, a problem with one website could potentially bring down all sites on that server.
All the above mentioned factors collectively affect the traffic handling of a web hosting service. So, it completely depends on the type of business if the shared web hosting would be beneficial for it or not.
So, if you are a small business with lesser traffic and a low budget, shared web hosting would be highly beneficial for you. But if you are a large business with comparatively more traffic and need more control, then either you have to compromise on the speed, security and downtime or you may need to switch to other rather expensive hosting options like VPS Hosting, Windows Hosting and cloud Hosting.
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