Shared or virtual web hosting has several things going for it. The main being price - they are usually the cheapest and most affordable solutions for an online presence. Since the company hosts tens of websites on one server, they are able to pass the savings to the consumer. Performace could be a downside, but with hardware getting cheaper and software getting better, this aspect might not be relevant for everyone. Take for example web storage space. Hard drive sizes continue to increase (over 100 GB is now common) and prices fall, allowing providers to give the end-users a better deal. The same holds true for CPUs and other components; dual CPU, RAID, ATA-133, and SCSI based computers are common in the web hosting world. With respect to softare, better management tools have allowed virtual hosting clients to have much of the functionality of their more expensive counterparts.
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