Optimized website hosting is a web hosting environment set up specifically for high performance delivery of a website to the browser. Of course the question is often asked "shouldn't all hosting do this"? In our opinion, yes - but most hosting falls VERY short of this.
Why Don't All Hosting Companies Provide Optimized Hosting?
The truth is, just like hosting, not all websites are created equal. Different kinds of websites require different types of optimization. And if you are a large corporation with 1000's of servers, each running 100s of websites, well it would just be too hard and to expensive to optimize for everybody.
At the core of the issue is shared hosting. Shared hosting is hosting that allows for the 100s of websites per one server. While shared hosting makes sense for the hosting company and yes, even customers who are only concerned about budget, it's the worse choice most companies could make.
Shared hosting is "lowest common denominator hosting". That means that the hosting environment is set up to make sure that no matter what kind of website you have, it will work for you. So, it works for pretty much everybody and is optimized for nobody.
It's a fact, Google DOES want to see optimized website hosting. In fact they are pushing it so hard that they have developed part of their ranking algorithm around it! Not only that, they have developed their own test for it, found here, and they have also developed their own web server module for it! Google is serious about your website's performance, you should be too!