If you divide the web hosting service based on it's application then you will get following different types of web hosting service - in which each one is described briefly.
1)File Hosting Service: This type of web hosting server only store files. May be simple text file, zip file, Audio file, video file, .iso file or any types of file but no web pages. User can upload file into the host server via ftp or any web interface. Most of the file hosting service offers free service with some restrictions like file size limit, captcha entry, bandwidth limit, total storage size, file expiration etc. The common example that offers file hosting service are rapidshare.com, megaupload.com.
2)Image Hosting Service: An image hosting server store images inside it and image hosting service offer users to upload images into their server. Image hosting service can offer upload image through ftp access and/or web interface. In both case you can upload multiple images at a time. Image hosting service can offer free or paid service. Free services usually comes with lots of ads in it. The common example of that offers image hosting service are flickr, picasa.
3)Video Hosting Service: As name implies that type of hosting service offers user to upload video, watching video and may be download video. The most common example of video hosting service is youtube.
4)Blog Hosting Service: Blog hosting service offers the support of authoring, editing, and publishing blog posts and comments. People can read your blog and comment on it. It also offers for image management, web syndication, and moderation of posts and comments. The most common example of blog hosting server is blogger.com and I use it to maintain my blog. You can also run your own blog hosting service and there are many free and open source weblog software that offers you to do blog hosting.
5)Social network Hosting Service: This type of hosting service offer you to store your general information, image, video and let you be connected with your friends. The common examples are facebook, myspace etc.
6)Game server hosting: A game server is a remotely or locally run server used by game clients to play multiplayer video games. Various strategic game or action games are played usually through game server. Most cases games are played over the Internet operate via a connection to a game server.
Lastly you can buy your own dedicated web server and decide which type of services you will provide. And if you want to choose many alternatives of web server and identify/compare cost between them you may see various web hosting companies searching through google.
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