How can the shared hosting server provide unlimited physical subdomains as opposed to unlimited virtual subdomains?

Posted by xport on Server Fault See other posts from Server Fault or by xport
Published on 2010-12-14T03:33:07Z Indexed on 2010/12/21 7:55 UTC
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iis

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web-hosting

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shared-hosting

Some hosting companies offer unlimited subdomains. There are two kind of subdomains: physical subdomains and virtual subdomains.

A physical subdomains has its own site directory rather than being nested inside the site directory of its parent domain.
A virtual subdomain site directory, on the other hand, is nested inside the site directory of its parent domain.

I wonder how can the shared hosting company provide unlimited (theoritically) physical subdomains? In my understanding, each physical subdomain represents a new site (rather than a new application or virtual directory) in IIS.

Please correct me if my mental model is wrong.

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