There are almost as many ways to host a website as there are websites. The best and most expensive choice is a dedicated server. With a dedicated server your site has the ability to maintain a clean IP history devoid of spamming. There is a lot of complexity involved and a lot more hardware and software involved in providing a safe and secure operating environment than just the server and its operating system. There are power backup, high speed internet connections, backup, security and monitoring equipment just to name a few expensive components not to mention the technical skills to make all of this happen. There are network administrators, programmers, graphic artist, media production, and eMarketing skills that are vital to the production of a dedicated server.
A shared web host is typically much less expensive than a dedicated host. While generally more expensive it is best to have a dedicated IP for your website. With a dedicated IP address your website has a unique footprint. With a shared IP address the host acts as an intermediary where the IP address may be hidden from the search crawler.