Port based hosting


IP-based

When IP-based virtual hosting is used, each site (either a DNS host name or a group of DNS host names that act the same) points to a unique IP address. The webserver is configured with multiple physical network interfaces, virtual network interfaces on the same physical interface or multiple IP addresses on one interface. The web server can either open separate listening sockets for each IP address, or it can listen on all interfaces with a single socket and obtain the IP address the TCP connection was received on after accepting the connections. Either way, it can use the IP address to determine which website to serve. The client is not involved in this process and therefore (unlike with name-based virtual hosting) there are no compatibility issues.
The downside of this approach is the server needs a different IP address for every web site. This increases administrative overhead (both assigning addresses to servers and justifying the use of those addresses to internet registries) and contributes to IPv4 address exhaustion.

Port-based

The default port number for HTTP is 80. However, most webservers can be configured to operate on almost any port number, provided the port number is not in use by any other program on the server. There is the HTTP Secure special port 443 that needs special configuration (see Server Name Indication). port based web sites are explicitly bound to a unique port number and an IP address. In this case the IP address is used for hosting multiple web sites. The unique port number used for a common IP address distinguish an individual web site from other web sites bound to the same IP Address.

Uses

Virtual web hosting is often used on large scale in companies whose business model is to provide low cost website hosting for customers. The vast majority of web hosting service customer websites worldwide are hosted on shared servers, using virtual hosting technology.
Many businesses utilize virtual servers for internal purposes, where there is a technological or administrative reason to operate several separate websites, such as a customer extranet website, employee extranet, internal intranet, and intranets for different departments. If there are not security concerns in the website architectures, they can be merged into a single server using virtual hosting technology, which reduces management and administrative overhead and the number of separate servers required to support the business.

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