A shared web hosting service or virtual hosting service or derive host refers to a web hosting service where many websites reside on one web server connected to the Internet. Each site "sits" on its own partition, or section/place on the server to keep it separate from other sites. This is generally the most economical option for hosting, as many people share the overall cost of server maintenance.

The hosting service must include system administration since it is shared by many users; this is a benefit for users who do not want to deal with it, but a hindrance to power users who want more control. In general shared hosting will be inappropriate for users who require extensive software development outside what the hosting provider supports. Almost all applications intended to be on a standard web server work fine with a shared web hosting service. But on the other hand, shared hosting is cheaper than other types of hosting such as dedicated server hosting. Shared hosting usually has usage limits and most hosting providers have extensive reliability features in place.