One's website is placed on the same server as many other sites, ranging from a few sites to hundreds of websites. Typically, all domains may share a common pool of server resources, such as RAM and the CPU. The features available with this type of service can be quite basic and not flexible in terms of software and updates. Resellers often sell shared web hosting and web companies often have reseller accounts to provide hosting for clients.
Simple websites are best for low to medium trafficked sites with multiple authors and more frequent content changes, such as marketing websites, content websites or blogs. They provide a simple starting point for website which might grow in the future. While typically low cost, these sites require IT administration of the web server and are not built to be highly available or scalable beyond a few servers.
Sadly, there is a bit of a "gotcha" to the free automatic backup service. If you're paying $3.95 a month (for the first year of hosting, then $9.95 a month), you don't get restores for free. Each restore, no matter how small or large, will cost you $19.95. I'm not sure how I feel about that. On the one hand, the company has to pay salaries to tech support reps who can handle panicking customers. On the other hand, it seems kind of mean-spirited to hit someone when they're down with an added fee. That said, getting your data back – at any price – is priceless.
The user gets his or her own Web server but is not allowed full control over it (user is denied root access for Linux/administrator access for Windows); however, they are allowed to manage their data via FTP or other remote management tools. The user is disallowed full control so that the provider can guarantee quality of service by not allowing the user to modify the server or potentially create configuration problems. The user typically does not own the server. The server is leased to the client.
Beyond that, Dreamhost is a 5-of-5 hosting company for many reasons. They operate their own control panel, which is convenient and easy to understand. While phone support isn't available 24-7, they are responsive to chat and tickets. The company uses superfast SSDs for all their storage, has a free SSL certificate (for more secured web browsing), and provides SSH access for those plans that are intended for more technical users.