Type of Server

Shared Server
Your Website will hosted on a server, which will also host other websites, this is acceptable to most of the people infact 99% of the websites in the world are hosted on such servers, specificaly meant for Hosting

Dedicated Server
This option is for Web Hosting Companies, Hosting Resellers and for clients who would like complete control of  web server machine, to run specialised applications or to cater to huge number of visitors to website. or clients who have requirement for Large amount of webspace.