Shared Web Hosting
Most of the hosting companies offer shared hosting packages. These are usually very affordable because the company is able to spread the costs of maintaining the server across multiple accounts. These shared environments can have as many as 1,000 - 3,000 accounts per server.
The servers do have the hardware and resources to handle traffic for this many accounts, but sometimes, one or more of the accounts will get a spike of traffic that can slow down access to all accounts on the same server.
Another potential issue is that if one or more sites on the server get infected with malware, the search engines can penalize all websites on the server that are share the server’s IP address. On shared plans, you can usually add a dedicated IP address for your account to use. This helps isolate your site from getting penalized because of another account on the same server.