There are so many different types of Web hosting options, If you know what the different types of hosting options are, you can make a more informed choice about what you need.
Free Web Hosting
Free Web hosting is free. Many free hosting providers support the hosting costs through advertising added automatically to Web pages through pop-ups, frames, and scripts. Free Web hosting is typically limited in some way compared to paid hosting. For example, you may not get as much space, bandwidth, or software.
Standard Web Hosting
This is the most common form of paid Web hosting. You pay for a specific amount of server space on a Web hosting system, and they provide you with high-speed servers, software, and other amenities. Most standard Web hosting providers use a shared system where you are granted say 5GB of space on a 100GB server. Your files are hosted there along with 15-20 other Web sites. You may or may not have your own domain name.
Dedicated, Virtual, and Shared Hosting
Dedicated Web hosting is where you get your own server machine for your site's exclusive use. In most dedicated hosting situations, the site owner will get root access to the server to make changes and control the site, but that depends upon the host. Some hosts provide an admin console or access through their helpdesk technicians.
Colocation
Colocation is the next step up from dedicated hosting. It is just like dedicated where the server machine is dedicated to your site's exclusive use. But in this case, you own the hardware - not the hosting company. Instead, what you are renting is the physical space in their facility and the high-speed Internet connection.
Colocation comes in two flavors: managed and unmanaged. With managed colocation, you pay for the server space and a team from your hosting company to manage your server for you. This is great for companies that want the control of colocation but don't have an IT department to manage the server. Unmanaged is where you handle all the administration and management of the server yourself, including software updates, the Web server, and the site itself.
Colocation is perfect for companies who want something unusual in their Web software configuration or need the extra security that total control provides.
Ecommerce Web Hosting
Ecommerce Web hosting can be any of the above types of Web hosting, but it adds in another dimension: SSL or secure socket layer. If you're going to sell something on the Web you'll need to have a secure server to protect your customers.
Many hosting providers will authorize your domains to use their SSL certificates for an additional fee. Ecommerce hosting often includes shopping carts and other additional features useful to online stores. Ecommerce hosting is important for any business selling goods on the Web.