There are a few types of web hosting. The basic one is known as shared hosting, VPS, cloud hosting and server also known as bare metal. Basically, two things affect your choice, the budget and what do use it for.
In my opinion, understand the different types of web hosting is important. This will help you with a realistic budget to a web hosting. What is a realistic budget?
I call it a realistic budget because the prices can differ a lot between plan A and plan B. For example, shared hosting is 200 a year bu a bare metal server is 200 a month. There is a huge difference in price. Here’s the question, do you need a dedicated server? Or do you just need a simple web hosting for you to publish a simple website and create a few mailboxes?
We do not anticipate a startup buying a server unless you are running a campaign and you are expecting huge traffic like an auction website or similar. These websites have greater returns and revenue generated from the website, hence the cost is justifiable.
Some choose to run their campaign with a smaller scale server like the VPS or the cloud hosting. VPS behaves like a server but with little resources. Because VPS and cloud hosting are scalable, it is good for those have an uncertain amount of traffic at the start.
I suggest base on your requirement to set your budget. It is not possible to buy a server at a shared hosting price. Don’t laugh, we have spoken to customers with such perception. Basically, they have a faint idea on web hosting. So, it is important to research and know the differences between different types of web hosting.