Having a dedicated web hosting server for people with low traffic web site is a waste. Many web hosts offer lower cost web hosting services by sharing one computer between several customers. This is virtual or shared hosting. Multiple websites are hosted by the same physical server. This makes it cost-efficient, saves on space and management. In other words virtual hosting is a method to run several websites on a single server.
There are two chief methods of virtual hosting:
virtual hosts use multiple host names for the same webserver IP address. When you connect to a webserver, the web browsers that support HTTP/1.1 send the address that the user typed into their browser's address bar (the URL). This address helps the server to decide which web site and the page to show the user. The browser states the address by setting the Host HTTP header with the host stated by the user.
In IP based virtual hosting, each site (DNS hostname) points to a unique IP address. The webserver is configured with multiple physical network interfaces, multiple IP addresses on one interface or virtual network interfaces on the same physical interface.
Uses - Many different web hosting companies offer virtual web hosting services to hundreds of customers to save on cost, and are hosted on servers using virtual hosting technology.