Dedicated hosting is setup for one domain for one and it's own set of IP addresses. This is the most common high-end host.
Managed Hosting Service
Managed Hosting involves a web site hiring a company to manage it's servers and to also manage the day to day routine of doing maintenance of the site like backups of the databases and it's cache files.
Co-location Web Hosting Service
The website owner would purchase a server and rent a spot in the rack location for the server to sit. They would then rent a block of bandwidth and a block of IP addresses to server their web hosting needs. This is often interwoven with Managed Hosting Services at the Co-location Web Hosting Service. This can be often times the most cost effective over a long span of time.
Clustered Hosting
This is the coupe' de gras of hosting. The end all to beat all. The Clustered hosting solution is for monster sites like MSN, Google, Yahoo, etc. In the most extreme cases, a company may opt for this, however it might think at this point to hiring it's own IT department and in house Servers.
Whatever hosting type your site needs, be sure to do a little background check on the company and try to talk to at least 2 of it's current or past customers. Also think about payment options and lastly about your needs.
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