What is virtual hosting? | HostGator Support
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What is virtual hosting?

Virtual hosting is just another name for shared hosting.

Shared hosting provides you all the normal services of a hosting company, but is much cheaper since you share the resources and IP address with other users.

This type of hosting is perfect for personal sites and small businesses. Once you start to get heavy traffic, you may need a more powerful hosting solution, such as a high level VPS or a Dedicated Server.