Shared hosting is a term used when you get the chance to share the same server with many other websites. This creates an economy of scale for your own individual sites that you have written with your own content. It also applies to a small business and a medium sized business with their own sites, providing the demands of these sites fall within the capacity requirements of the server that acts as the “mothership” for all the sites using this service.
The capacity requirements provided by the server for each website linked to the server are usually much larger than the criteria each shared website will ever need. The main benefit with regard to cost of using the server is all the websites that are sharing the hosting service of the one server are able to split the administration costs. This allows the server to provide the functions that the websites use to maintain their presence on the internet at a low cost.