The document discusses different options for hosting Rails applications, including shared hosting, VPS, and dedicated servers. Shared hosting is the cheapest option but has limitations in terms of resources and customization. VPS hosting provides more control over the server but still has resource constraints. Dedicated servers are fully customizable but the most expensive. The document also outlines various considerations for setting up a Rails application hosting environment, such as hardware, software, databases, deployment, backups and more. Popular shared hosting providers, VPS providers, and PaaS options for Rails apps are also listed.