A shared web hosting is also popularly called shared services or virtualhosting. The mechanism of a shared web hosting is simple. When multiple websites share same server, it is called shared hosting server. The process reduces the costs for every single websites. Small scale companies go for shared web hosting server as they can not afford a Dedicated Server or a Virtual Private Server.   
Shared web hosting is a service in which hundreds of sites are hosted in one particular server. It does not nice sound good, but it is a fact that this type of hosting works for some websites which do not generate huge amount of traffic. Thus, a shared web hosting is best for the startup organizations site, personal sites, medium scale businesses and small scale industries.  
A shared hosting provider offers comparatively more disk space, e-mail hosting and data transfer to meet the businesses requirements. Most of the times organizations do not even use all the features which are available to them. The selection of the feature lists does not narrow the field much. So, one should be aware of the criteria to measure the selected host.  Thus customers often make the wrong choice when the hosting is concerned.

Businesses should chalk out the criteria of web hosting services. For an example, customer should decide the right operating system for their web hosting services. Linux shared web hosting is one of the most popular services among the small scale businesses.

So, for the organizations which have recently started up, they should contact shared hosting provider and ask for the features and services they are looking for. Slowly, one can switch to other hosting as well. Thus, it is suggestion to all startups, that they should hire the best services and leverage their business.