Shared hosting is a cost effective method of web hosting, where many websites share the entire cost of maintaining the server. Every website has its own partition in the server that separates it from other websites. Moreover, there is no compromise on security concerns and performance issues as the web servers are monitored 24/7 by share hosting providers.

[Efficiency] Most website hosting providers offer shared web hosting services with proper web space and bandwidth allocation that are more than sufficient for small business websites. This allows companies to add more resources.

[Manageability] These web hosting companies also provide utility options for proper control and supervision, which allows the enterprise to manage its own website using the control panel and other similar tools. There are a wide variety of control panel systems including Cpanel, H-Sphere and Plesk. Users can check web statistics, add database, and upload modify or remove web pages.

[Viability] Web servers are further closely monitored and operated by expert personnel. This ensures minimum or no issues in case of server downtime and maintenance. With minimum problems, organizations can concentrate on their business quite effectively.

In fact, shared web hosting is a lucrative for small business enterprises; the fact that numerous websites are hosted on a single web server ensures low cost and high efficiency. There is cut-throat competition in the web hosting industry and so website hosting companies are offering as high as 1-2GB of web space and 4-100GB bandwidth with prices as low as $100 annually.

While shared web hosting can be a very cost effective and feasible option for small scale enterprises, it has its own disadvantages.

[Security Problems] Although web hosting experts ensure there are no security hassles, still, the problem persists. Numerous websites are shared on one server and so the risk of hacking one's confidential data is inevitable.

[Sharing problems] Since websites are shared in one server, they have a shared IP address. Suppose, a particular website breaks the law, all websites on the same server can face a ban by the ISP or search engine. In such cases, one can choose dedicated IP address to avoid such hassles.

Finally, a question that props up every now and then is whether shared web hosting reliable? There are some risks of shared hosting in terms of reliability. Web hosting providers may not always be held responsible. A website may run a malicious program or script that result into combined server downtime.