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What is hosting?

The most important basics explained simply

Close-up of illuminated server racks in a secure data center, symbolizing data sovereignty and GDPR-compliant cloud infrastructure.

18.05.2026, Reading time: 6 minutes

Summary: What is hosting?

Hosting (or web hosting) is the provision of storage space (web space) and infrastructure on servers to make websites, online stores and web applications available on the internet around the clock. Modern companies are increasingly relying on cloud hosting to ensure maximum reliability, scalability and digital sovereignty.

A comparison of the 4 most important types of hosting: To choose the right infrastructure, companies need to know the differences between the hosting models:

  • Shared hosting: low-cost entry-level solution where several customers share the resources of a physical server. Suitable for small websites with low traffic.
  • VPS (Virtual Private Server): A physical server is divided virtually into self-contained areas. Offers guaranteed resources and more control at moderate costs.
  • Dedicated hosting: A complete, physical server is available exclusively to a single customer. Maximum performance and control for resource-intensive applications.
  • Cloud hosting: The most modern form of hosting. Resources (computing power, memory) are obtained flexibly from a server network (the cloud). If one hardware node fails, another takes over. Offers maximum scalability and reliability.

The 3 most important criteria for professional business hosting:

  1. Data security & sovereignty: For German companies, a server location within the EU is mandatory to guarantee GDPR compliance (as with STACKIT).
  2. High availability (uptime): Business-relevant systems require infrastructures with guaranteed availabilities (SLA) of over 99.9%.
  3. Scalability: The hosting environment must be able to grow seamlessly during traffic peaks (e.g. due to marketing campaigns) without any downtime.

What is hosting?

In order for a website to be accessible and findable on the internet, it must be hosted on a web server. This server infrastructure is referred to as web hosting, or hosting for short, and is one of the core technologies of the internet. However, web hosting is not a one-size-fits-all solution, as websites have different requirements in terms of storage, computing power, and scalability depending on their purpose—be it an e-commerce store, a blog, or a high-traffic corporate website. Hosting should therefore always be precisely tailored to the operator's content, traffic volume, and business objectives.

As part of the Schwarz Group, STACKIT consistently focuses on maximum data sovereignty, strict data protection, and the highest level of IT security. The entire infrastructure is operated in certified data centers in Germany and Austria, ensuring that all data is stored and processed exclusively within the EU – in full compliance with the GDPR (General Data Protection Regulation). STACKIT thus combines security, regulatory compliance, and high performance to create a stable foundation that enables companies to advance their cloud strategies in the long term with minimal risk.

Learn everything you need to know about the advantages and types of hosting in this article.

The most important terms related to hosting in this article

What are the advantages of hosting with STACKIT?

GDPR compliance & EU data centers

STACKIT operates a purely European cloud infrastructure in which all data is stored and processed exclusively in state-of-the-art data centers in Germany and Austria. Thanks to its strict adherence to European data protection standards, STACKIT fully complies with the stringent requirements of the GDPR and helps companies to ensure that their data processing is legally compliant.

Data sovereignty and certified infrastructures

Companies retain full control over their data, as third countries or non-European authorities do not have access to it. The data centers are certified according to international standards (ISO 27001), which ensures the highest standards of security, quality, and compliance.

High IT security and performance

Advanced technical and organizational security measures such as encryption and firewalls effectively protect sensitive company data from unauthorized access. STACKIT's cloud services offer a robust, high-performance infrastructure that reliably powers business-critical applications even under full load.

High availability – flexibly scalable

Redundant systems, 24/7 monitoring, and failover mechanisms ensure that applications remain accessible around the clock, even during peak loads. Computing power and storage can be seamlessly scaled up or down as needed, perfect for fluctuating requirements or dynamic business models.

Future-proof

STACKIT is designed as a durable cloud platform and provides companies with long-term support on their journey into the digital future.

Transparent services and German support

The cloud services are clearly structured, with no complicated contracts or hidden costs and dependencies. Customers are assigned German-speaking contact persons who are available to assist them with direct communication and short decision-making processes whenever they need help.

What is hosting?

Hosting – often referred to as web hosting – refers to the provision of storage space and resources on a server to make websites and other online services available on the internet. Websites and applications are stored on specially configured servers that are permanently connected to the internet. This permanent server connection ensures that users worldwide can access the content at any time. Essentially, hosting means that a website rents a "space on the internet." The hosting provider not only provides the necessary storage space, but also computing power, network connections, and a stable technical environment – in other words, the entire digital infrastructure of a website.

Professional web hosting services usually include more than just data storage. They offer additional features such as automatic data backups, security certificates, a dedicated domain, email services, and user-friendly tools for creating a website.

Website hosting therefore forms the central technological basis of any online presence.

An overview of the types of web hosting

To choose the right hosting provider, it is important to understand the different types of web hosting. It is not necessary to know every technical detail, but rather to understand the basic differences and areas of application of the individual hosting models – especially those that are relevant to your own company.

Hands holding a tablet projecting a glowing, holographic cloud, representing shared hosting and cloud computing.

Shared Hosting

Here, multiple customers share a physical server and its resources, such as processing power, RAM, and storage. The individual hosting accounts are separate from one another but access the same hardware. This solution is particularly suitable for personal websites, blogs, or small business websites. It is cost-effective, requires little technical expertise, and is fully managed by the provider. However, since all users share the available resources, a website’s performance may fluctuate if other projects on the server are under heavy load.

Businessman touching a digital interface featuring a server icon and the text "Web Hosting", representing professional dedicated hosting.

Dedicated Hosting

With this option, a customer rents one or more physical servers, including all resources (processing power, storage space, RAM), which are available exclusively for their own project. This solution offers maximum performance, security, and control. It is primarily chosen by companies or web projects with high traffic volumes or specific system requirements. The downside is the higher cost and the increased effort required to manage and control the server.

Futuristic data center with server racks and a glowing cloud computing symbol transmitting data streams.

Virtual Private Server Hosting (VPS Hosting)

With VPS hosting, a physical server is divided into several independent virtual machines. Each of these virtual instances functions as a standalone service with its own operating system and dedicated resources such as RAM, CPU, and storage space. This type of hosting combines the cost-effectiveness of shared hosting with the higher performance and better isolation of dedicated systems. Since each virtual environment is separated from the rest of the server, users benefit from greater security and stability.

3D render of a blue cloud with digital circuits, representing modern cloud hosting and secure data storage.

Cloud Hosting

This type of hosting is based on a network of distributed servers that are connected into a flexible overall system using virtualization and highly scalable hardware. Applications and websites are not hosted on a single physical server, but are dynamically distributed across multiple systems, ensuring high availability and reliability. A key advantage of this hosting model is that resources such as processing power, RAM, or storage space can be added or reduced in real time as needed. Cloud hosting is therefore particularly well-suited for growing or highly fluctuating projects.

What is the difference between web hosting and a domain name?

Web hosting means that storage space and computing power are provided for your web application or website on a server on the internet. The hosting provider therefore provides the technical infrastructure so that your content is permanently accessible on the internet. The domain name, on the other hand, serves as an easy-to-remember address at which your website can be accessed.

Every computer on the internet has a unique numerical identifier – the IP address. Other devices can use this to access the server and the data stored on it. However, since sequences of numbers are difficult to remember, the DNS (Domain Name System) was developed. It translates user-friendly names such as example.com into the corresponding IP addresses and vice versa. So when a user enters a domain name in the browser address bar, the DNS resolves this name into the corresponding IP address and connects to the desired website.

To make your website accessible on the web, you need both a web hosting package from a provider and a registered domain name. You choose the name yourself, but it must be registered with a registry for an annual fee. After registration, the domain name can be linked to the hosting account and thus functions as the official address of the website.

Tips, tricks, and important information about hosting with STACKIT

  • Depending on the scope and technical requirements of your project, choose the appropriate hosting type, such as shared hosting, VPS/cloud, or dedicated hosting.
  • For maximum security of your website, rely on regular backups, SSL certificates, and firewalls.
  • Hosting should be easily adaptable to increasing storage requirements, traffic, or additional requirements.
  • Competent support makes your operation easier and avoids unnecessary downtime: At STACKIT, you get help with short response times.
  • A fair price-performance ratio, transparent contract terms, and flexible cancellation periods are also important.

FAQ – frequently asked questions and answers about hosting

Who needs web hosting?

Basically, any person or company that wants to operate a website publicly on the internet needs web hosting. Whether it's a private blog, online shop, or company website – without web hosting, website files are not stored on an accessible server.

Why is SSL important in the context of hosting?

An SSL certificate ensures that all data between the website and visitors is transmitted in encrypted form. This protects confidential information such as login details, form entries, and payment information.

Is web hosting free?

Web hosting costs depend on several factors, such as the type of hosting and the scope of features such as storage space and bandwidth. Many providers offer free web hosting, often as an add-on to other services such as a domain or website management tools. However, such free options usually have limitations in terms of speed, traffic, or support and are more suitable for testing purposes than for professional websites.

What services does web hosting include besides providing storage space?

Depending on the hosting option you choose, web hosting consists of various components. Basically, every offer includes the provision of web space on a web server and the technical assignment of a domain name to this storage space. In addition, additional services are often offered that extend the range of functions or facilitate administration, such as email hosting and spam filtering, CMS, backup service, database administration, monitoring, technical support, and SSL/TLS certificates for secure data transmission.

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