Web hosting is the location or service that stores and serves website files and services. It is a combination of compute, storage, and networking resources required to store and run the web applications, and can be internal within an organization or as an external service offered by a hosting provider.
There are different types of web hosting services. The common type includes on-premise or local hosting, cloud-based shared hosting, VPS hosting, and dedicated sharing. Each of these differs in performance, cost, and the control you have over them. As such, you need to carefully evaluate your requirements, budget and then choose the right plan that serves you teh best in terms of cost and performance.
Most often the hosting providers have all the plans, and this makes it easier for customers to switch to the plan that aligns with the current needs. In terms of cost, the shared hosting is the least expensive, followed by VPS and finally, the dedicated servers which are the most costly as all its resources are available to the customer unlike the other two where there is some form of sharing.