When you look at most of website hosting providers you can see that there is a lot of different types of website hosting. If you are simple user, you will just be interested in 1 type of website hosting, but we are going to review all of them.
So most common type of website hosting is virtual hosting (also known as shared hosting). It is best solution for you if you don't want to pay big bunch of money, you don't need a lot of cpu resources and you don't use any specific software. So shared hosting is good if you are simple user, who want's to host website and nothing more.
If you need a lot of resources (like all PC), you can choose dedicated web hosting. We don't think that website should need a dedicated server, because it has lots of resources, but if you are holding a lot of data, getting a lot of traffic and your current website is crashing, you should considering of getting VDS(virtual dedicated server).
Virtual Private Server(VPS) is an VDS server splitted into more virtual computers. So it is a lot weaker VDS alternative. Of course it is cheaper, so if you are thinking about simple internet project, which needs more power than virtual hosting offers, you should get VPS.
Server Co-Location is good opportunity too. It means your hardware, located in hosting data centre. So you have your hardware, but you don't have to care about it! It is good, when you need very powerful PC, or unique PC, that can't be offered by VDS providers.
So this is short review of all types of website hostings. If you still aren't sure about what do you need, please read other our articles, maybe you will find your answer.