We already know that Google is using over 200 parameters in ranking websites. It is always been one of the questions that haunts many webmasters and SEOs, whether the nature of their hosting has any effect on their ranking. Different types of hosting that we have today include shared hosting, dedicated hosting and VPS hosting or cloud hosting. Many website hosting companies are trying to take advantage of the ignorant webmasters by inducing fear that Google will rank you down if you are in shared hosting. One of the reasons they give is that webmasters do not have any control over the nature of the websites hosted in shared hosting. Some of the sites may be from the gambling industry while others on adult content. Views are spread that if your website is hosted in the same server along with the other risky niches your website too can be ranked low. Is this really true? Can Google be so ignorant about how different hosting services work and penalize websites just because they are using shared hosting and that hosting happens to be in some restricted niches?
Recently Matt Cutts while answering a related question in the Webmasters-help videos explains that it should not really be a matter of concern. However, one of the factors Matt Cutts points out is that if you are going to do something outrageous with the intention of improving your ranking, for example having thousands of websites in the same Class C IP pointing to a single website then it might invite Google scrutiny.
Due to the nature of your business, you may not require dedicated hosting or your small business may have just a limited budget. In such situations, you should not be worried about using shared hosting. There are many websites that are hosted in shared servers and still rank high. However, having your own dedicated servers is certainly more advantageous because you will be able to have more control over your hosting such as installing your own scripts in the servers etc. Therefore, the advantages of having your own dedicated hosting come from different quarters and not necessarily from the SEO perspective.
When you come across popular views which may sound almost correct, like the one on shared hosting, their effect on SEO, it is vital that you try to get deeper into the matter and try to get things clarified so that you will be on the right track while at the same time you will be saving yourself from unnecessary anxiety. This way, you can also save yourself from being taken advantage of by the hosting companies that try to propagate false notions on how search engines work. If you are not a web savvy person, you can get assistance from a reputed and dependable SEO company so that they can steer you right, keeping the best interests of your business in mind. So the next time you are about to make any decisions on hosting try to get some professional help.