Reality: Most hosting companies maximize profits by reducing services and simply providing storage space. Data backup and recovery strategies become your responsibility, and many businesses overlook the need for these important services until a crisis arises and you suddenly realize there is no way to recover your site or data files.
Most hosting services also sell in bulk, which means that your site can reside on a server with hundreds of other sites, even if some of those other sites are spam, phishing or other malicious sites.
The downside, beyond the obvious potential security threat, is that search engines actively remove spam sites from their listings and in some cases blacklist entire servers if that server is known to contain such sites. If your site has the bad luck to be on a server with spam sites, your site will be banned from listings too.
A good hosting program should include search engine specific features, disaster recovery plans, adequate security and protection from threats, and be customized around your business needs, just like all of the pieces that support a successful marketing plan.