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Do you need Dedicated IP when hosting your website ?
Many of us who is still beginner in web hosting industry didn't really know what is Dedicated IP/Static IP and does it really important to have dedicated IP for your site ?. And is there any difference between having dedicated IP and shared IP. In this article, I will try to explain and elaborate as much as possible so you can have better understanding and decide whether you really need them.
As the IP Address is getting harder and harder to get, most web hosting company doesn't offer dedicated IP to their hosting account. So basically when you host your site with them, you are sharing your IP Address with other web site and one IPaddress is normally shared by hundreds or even milion sites.
Then, the question is , how does it work, how did it knows how to load my site and is there any performance issue when your site IPAddress is shared between other web site?
The answer is that all the web request is handled by Web Server,and the webserver will load the your site based on the host header or virtual host name that your site is configured.
For example if the web server has 5 website and all sharing one IP, then the Network Admin has to configure host header or virtual host that is unique to your site such as www.yourdomain.com to your site.
And there is no performance benefit on using dedicated IP over shared IP. It all depends on your hosting provider bandwidth.
So what is the reason why people want dedicated IP?. The main reason is if you planning to use SSL on your site, then you need dedicated IP.If not then either static IP or shared IP doesn't make any difference.

How to estimate your website hosting needs
Write this article especially for people who are new to web hosting. This is why I will only talk about the basic needs (in a shared hosting environment): space, bandwidth. Most of the people looking for advanced features (scripting, databases) already know what they want/need anyway.
So let's start with the space. Web space (disk space) is the amount of data you can store on the hard disk of the web server. Each web hosting account comes with a certain amount of space, usually over 50 MB and less than 1000 MB.
Obviously, the amount of needed space depends on the size of the website. Most websites are composed of html (text) pages with a few images (gifs or jpegs) or even a little bit of Flash animation. Text is very economical; it occupies very little space. Images and flash are more expensive; they require a lot of space. If you're new to the web you might think it's great to have a lot of colorful images to make your website really beautiful. Don't make this common mistake!
Your aim should be to say as much as you can on a page while maintaining it's size under 50-60 KB including images.
The reason? There are still lots of people using slow dial-up connections of under 56 Kbps. For them a 150 KB will take more that 21 seconds to load. A 60 KB page will take more than 8 seconds to load. That's still a lot of time! A good page size is under 30 KB. A maximum page size is 50-60 KB. Considering an average page size of 30 KB, you can put approximately 33 pages on 1Mb of space. If you have 10 MB of space available, you could host 330 pages. I only wish I had so many pages to put online. Don't worry, I'm working on it!
The idea is this: unless you run a busy forum your needs for space are likely to be rather modest. Just keep in mind to achieve an average of 30KB/page and you should be more than fine even with 10 MB of web space.
Bandwidth is the amount of data that you're allowed to transfer per month. It includes all uploads and downloads regardless of the protocol used (HTTP, FTP, POP etc.). Bandwidth depends very much on the average page size, but it also depends on the number of visitors your website will have and the average number of pages they visit. For an average page size of 30 KB, 20,000 visitors per month and 3 pages per visitor your website will need about 1800 MB (1.8 GB) of bandwidth per month. Most low cost hosting packages include that amount of bandwidth. Not to mention that 20,000 visitors per month is only a dream for most websites. Most don't even have 2,000 visitors per month.
I took you through all those numbers just to give you an idea how to estimate your needs. If you're just launching your website you will not need neither a huge amount of space, neither a huge amount of bandwidth. For 99% of people a hosting account with 10MB of space and 1Gb is more than enough. Conclusion: Unless you have reasons to believe that your website will definitely have lots of visitors and unless you'll offer movies or music for download (legally of course), I see little reason for you to worry about space and bandwidth.
Just make your own calculations and also try to make sure that the host you choose allows account upgrades. That is to make sure you will be able to get more space and/or bandwidth if/when you need it without going through all the trouble of changing hosts.

Bandwidth Or Data Transfer - Which is Which?
Too often web hosts talk about bandwidth and data transfer in the same breath but truth be known they are different although very closely related. Bandwidth is how much data can be transferred at a time and data transfer is how much data is being transferred.
Think of it this way. If bandwidth were a bridge, then the bigger the bridge is the more vehicles can pass through it. While data transfer is the number of vehicles allowed on the bridge in say a month. In essence, data transfer is the consumption of bandwidth.
How It Affects Your Site
The less bandwidth you have, the slower your site takes to load regardless of the visitor's connection type. If you have more visitors, some of them will have to wait their turn. The least data transfer you have, the more often you'll find your site unavailable because you're reached the maximum allowed until a new month rolls by or you upgrade your account.
Determining Your Requirements
Usually when a host talks about bandwidth, they are referring to your transfer. So you need to figure out what is sufficient for your site to function. You'll need to gather some information; fairly easy if you already have a site. Most of this information is available from your traffic history. If you don't have an existing site, provide an optimistic estimate if you intend to heavily promote the site. Then get ready for some math.
Find out the daily averages of:
1- Number of visitors / expected number of visitors
2-Page size including the graphics of the page
3-Page views / expected pages viewed by each visitor
Then, multiply them as follows:
Visitors x Page size x Page views x 30 days = Monthly Website Transfer
You should also throw in a small margin or error there to take into account email traffic and your own uploads to the server. If you offer downloads, then you should add the following:
Average/Expected downloads x File Size x 30 days = Monthly Download Transfer
Unlimited Plans
Bandwidth is very expensive. All hosts are limited by their own allocations. Thinking back to the bridge. What happens is each visitor to your site will be given a smaller lane to transfer the data, creating many tiny lanes therefore "unlimited". The more visitors you have the smaller each lane will be, which makes each visitor wait for the page to load.
More often than not there is little choice over your bandwidth as your host controls this. Some hosts may limit the number of simultaneous connections so in affect slowing down your site and refusing some visitors. This is called throttling.
If you're concerned about this, you should ask the host how they control bandwidth usage or purchase a package with more data transfer. If you use HostVoice.net (http://hostvoice.net), this information is easily obtainable with one request.
Reducing Transfers
On the other hand, you can reduce your transfer amount by building simpler, more efficient websites and optimizing your graphics. Refrain from fancy flash presentations or streaming audio. Use CSS, call JavaScript externally instead of embedding in every page.
Remove unwanted tags, white space and comments. Limit your META tags to those absolutely necessary. Having too many keywords is not search engine friendly. Besides many search engines will only review the first few and ignore the rest.
Another good idea is to cache your website but you might want to set an expiry date in the HTTP headers so the browser will refresh the content after a certain time. Use mod-gzip. It could save you as much as 40% of your bandwidth. Out of control robots can also suck down your bandwidth like a black hole. So use robots.txt to keep spiders in check.
Src: http://www.cyberindian.com/web-hosting/