Shared web hosting
The term "shared web hosting" refers to the usage of a single webserver to host multiple websites for multiple customers. It is generally used in comparison to "dedicated hosting" or "dedicated server hosting" where you typically have a single webserver dedicated to hosting a single website (or multiple sites for a single customer).
In the beginning of "the web", when you needed a website, you set up a server with webserver software, and built your site on it. But as more folks started adding small websites with small amounts of traffic, it quickly became clear that you didn't need a whole server just for one website, that in fact, 1 physical server could be able to host a large number of small websites... those websites could "share that server's resources".
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Today, the two main web server solutions, Apache for Linux, and IIS for Windows, both provide the ability to host multiple websites on a single server, all sharing a single IP address and other server resources (CPU, memory, etc). Each provides an implementation that isolates each site's code and user priveledges to ensure approriate security, although each takes a slightly different approach.
So, in short, shared hosting means you have many websites on a single server.
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