How hosting companies rake in the dough.

It seems amazing how hosting companies can have sites so cheap sometimes. Not knowing what goes on behind the scenes, you might think you have a whole computer just for your web site. It could be that way for more premium site rates. Amazon and all the major sites do two things. What they do is two fold. They use one set of hardware to set up what is known as virtual machines. One computer can emulate one or more additional machines. You do not have to purchase additional hardware to have another computer to set up a web site.  Almost like getting a computer for free.

The second thing they can do is have what is known as virtual hosts. That is you can run many websites with only one computer. So every time a hosting company signs up someone to use their equipment for having a web site, it is almost like free money as it does not cost them any additional money to host your site (unless their equipment is at full capacity). For example, we love to have virtual web hosting. You can set up websites for special purposes and be at their own special web address. For example, we are running all the following sites and more all on an old Intel now a Pentium III computer (on a private network).

Amazing is it not. What a cost savings and ROI (Return on investment). Before some web host wants to charge you an arm and a leg to host your site, ask them what you are really getting for your money.