Shared vs. VPS: Choosing the Right Hosting Solution for You

You’ve finally decided to dip your toes into running your own website. It’s an exciting new endeavor, but then you hit your first roadblock—which hosting should you choose? The two types you will hear of most often are shared hosting and VPS (virtual private server). 

Both options will get the job done, but they’re typically suited for different setups and budgets. So, instead of diving in blindly, take the time to make an informed decision by balancing your needs with your budget.

At first, all this may seem overwhelming. But fear not; this article will help you understand the differences between shared and VPS hosting, what each solution is suitable for, and what to look for when choosing a plan. 

Shared Hosting vs. VPS Hosting 

Shared and VPS hosting are two foundational pillars of the web hosting industry, both known for their efficiency and stability. However, as with many things, there is no “one size fits all” solution in web hosting. Each plan has its strengths and weaknesses, and it’s up to you to decide which one best suits your needs. Let’s explore what makes each setup unique.

What Is Shared Hosting?

Still, responsible web hosts try to alleviate this by leveraging strict resource monitoring and restricting excessive usage, which ensures equal and fair distribution of server resources. They also implement mechanisms like a CDN (Content Delivery Network) and caching to reduce server strain.

That said, shared hosting remains the most affordable option for running a website. Hosting multiple clients on the same shared server reduces the costs for the hosting provider, who can, in turn, offer the service at a much lower price. 

Who Can Benefit from Shared Hosting?

• Personal blogs with growing audiences
• Startup companies looking to expand operations
• Medium-sized businesses with consistent numbers of users
• Beginners looking for easy-to-manage website applications and tools   

Pros 

• Low cost–Shared hosting is cheaper since multiple users share the server cost.
• Managed server–The hosting provider typically manages the server configuration. 
• Easier management–Out-of-the-box management tools provided by the hosting company for better website management.
• Beginner-friendly–Shared hosting is great for beginners. They can focus on their website while the host takes care of the server.

Cons

• Shared server resources–No dedicated resources for your website. You share the resources with other users. 
• Server limits–There are usually bandwidth or traffic limits to reduce the server load.
• Limited customization–Limited access to the server configuration since multiple users share the same environment.
• No root access–Root access is not permitted on shared hosting since the service is managed.

If you’re seeking a reliable and affordable shared hosting solution, SiteGround offers a range of plans tailored to meet diverse needs. Our shared hosting packages provide an ideal platform for small, medium, and large websites alike. 

What Is Virtual Private Server (VPS Hosting)?

This means that you are independent of your neighbors since you have your own dedicated disk space, CPU, and RAM. 

However, it also means that you are solely responsible for maintaining the entire VPS. Thus, your website performance depends on your server maintenance knowledge. 

VPS hosting plans are usually located on less crowded servers, primarily containing other VPS users.     

Since you are independent of other users, you have much more freedom in modifying the server configuration. Usually, VPS plans come with root access, which means you have full control. You can tweak almost everything as you see fit. 

It’s like living in a building where others rent smaller apartments and share common spaces and amenities, but you have your own condo with its bathroom, kitchen, and everything you need. 

There is a tradeoff, though: VPS servers are usually more costly than many other hosting types, including shared hosting. Furthermore, you are solely responsible for the server maintenance. While the host will maintain the physical server, you are on your own when it comes to installing and managing the operating system, modifying the server configuration, and all other technical aspects. 

Who Should Get a VPS? 

• Large businesses with a lot of visitors and traffic and who are able to afford more expensive solutions
• Large ecommerce stores with higher budgets that consume more resources
• Technically proficient users with an innate understanding of server maintenance 

Pros

• Improved performance and uptime–Performance is more predictable since you are not sharing resources with others.  
• Guaranteed server’s resources–You have dedicated server resources. 
• Increased bandwidth limits–Bandwidth limits on VPS hosting are typically more lenient. The limits depend on the web host.              
• Unaffected server usage–You are independent of your neighbors on the same physical server. 
• More control–Root access and access to the entire server configuration. 

Cons

• Expensive–More expensive than shared hosting. 
• Not beginner-friendly–Requires advanced technical knowledge of server maintenance. The web hosting provider doesn’t get involved in server maintenance. 
• Unmanaged–You are on your own when running the server, which can be time- and effort-consuming. You may need to hire extra staff.  

SiteGround doesn’t offer VPS hosting but provides a more sophisticated and advanced alternative: cloud hosting. This solution is both powerful and highly scalable, allowing you to adjust resources dynamically to meet your website’s demands. Cloud hosting ensures that your site can handle traffic spikes effortlessly, maintaining optimal performance and reliability. By choosing SiteGround’s cloud hosting, you gain the flexibility and power of a scalable infrastructure without the complexities of managing a virtual private server.

For more information on this topic, read this article about cloud hosting vs VPS hosting.

Differences Between Shared Hosting and VPS Hosting 

VPS hosting is more expensive and suitable for advanced users who require more control and possess the technical knowledge to maintain a web server independently.       

Shared hosting is a simple, budget-friendly solution and a great choice for medium-sized websites. You can’t customize the server setup, but in some cases, that’s not a bad thing. Shared hosting is usually managed, meaning your web host takes care of server maintenance, allowing you to focus on managing your website without worrying about actions that could harm the server.    

But let’s go through all the differences between shared and VPS so you can make the best choice for your needs.

Performance

Performance is a crucial aspect of running a website. You want your visitors to stay on your web page, and to do so, your website should load quickly before they give up waiting and abandon it. Performance also plays a huge role in the SEO rankings, especially since Google introduced Core Web Vitals.

In a shared server environment, the website speed can fluctuate since you don’t have fixed resources. More or less, you depend on the other users—if another website eats up too many resources, your speed may also suffer. These fluctuations can be mitigated by a reliable web hosting provider who imposes resource monitoring and fair resource distribution.   

At a base level, you can squeeze out more performance from virtual private servers. You have a reserved amount of resources exclusive only to your websites, so other users on the same physical server don’t influence your website. 

This comes with one caveat: on a VPS hosting plan, you are responsible for the server maintenance. Thus, you should have advanced knowledge of how to run the entire server and all applications to make sure that it doesn’t fall apart. Alternatively, you might need to spend extra cash hiring additional staff to monitor your VPS.   

Security

Security is another critical facet of running a website, and similar to performance, there are elements of it that just aren’t so straightforward.

A shared server hosts multiple websites, and the more websites there are, the greater the exposure to security breaches. If one website falls victim to malicious attacks, the other websites might follow. However, in most cases, shared web hosting is managed, meaning hosting providers enforce strict security rules, firewall protection, and malware prevention measures to keep you safe.

On a VPS plan, you benefit from an isolated environment dedicated exclusively to your websites, eliminating concerns about infections from other users. However, this autonomy also means that maintaining the server’s integrity is entirely your responsibility. To prevent security breaches, you must remain vigilant and proactive, implement robust security measures, and continuously monitor your server.

Scalability and Flexibility

As your business grows, it’s crucial to scale your server to handle traffic spikes without losing momentum. In this regard, shared servers are less flexible than VPS servers. Shared hosting providers typically offer plans with fixed resources that cannot be increased separately. You must upgrade to a higher plan in order to scale up the resources.  

With SiteGround shared hosting plans, upgrading is as easy as a single click. Changing your plan does not require reconfiguration or downtime, allowing you to enjoy a smooth transition to a more powerful solution. 

VPS plans, on the other hand, are generally more flexible. They are often hosted on premium servers, with resources distributed among fewer users, providing more headroom for expansion. However, the ease of scaling can vary depending on your provider. With some, adding extra resources may be as simple as clicking a button, while others may require a more complex and time-consuming configuration process.

When it comes to scalability, SiteGround offers an excellent alternative to VPS—cloud hosting. Cloud servers provide the same power as VPS but excel in scalability. Users can adjust resources up or down as needed without experiencing downtime. You can even configure a cloud server to autoscale. This allows the system to monitor resource usage and automatically allocate more resources when CPU or RAM usage nears its limit. For more information, check out this guide on setting up autoscale for cloud servers.

Customization

In terms of customization, VPS servers are the clear winner. Shared hosting providers are able to offer cheaper web hosting solutions by accommodating multiple users on the same physical server. But for this to work, they need to maintain strict restrictions that cannot be surpassed—certain ports are closed, firewall rules are tougher, server configuration is off-limits, etc.

In contrast, a VPS provides you with your own isolated server environment, separate from other servers and accounts on the same physical machine. This grants you significantly more freedom to customize your server—you can close or open ports, set up a dedicated IP address more easily, modify the server configuration files, etc.  

But again, most users will do just fine with the pre-set configurations hosting providers usually offer. So unless you have a very technical background and really know your way around this, you will probably be better off with shared hosting. 

Level of Control

With a shared hosting plan, you don’t have the level of control that VPS hosting offers. Since you share the same server configuration and operating system with other users, any changes to the configuration could impact everyone differently.

If you require greater control, VPS hosting is the way to go. However, remember the wise saying: “With great power comes great responsibility.”. While you’ll have much more control over your server, this also means you can inadvertently cause issues if you lack the necessary knowledge and expertise in server maintenance.

Price

When it comes to pricing, shared hosting is significantly more affordable than VPS hosting. By optimizing costs in a shared hosting environment, providers can offer budget-friendly yet reliable solutions that cater to various financial needs, with some plans starting at just a few dollars per month.

While VPS hosting is generally more expensive, there are some extremely low-cost options available. However, these budget VPS plans often come with limited resources, and many shared hosting plans can surpass them in terms of performance.

A reliable and well-equipped VPS server is typically a more costly investment. It’s important to assess whether you truly need the advanced features it offers in exchange for the higher price.

VPS vs. Shared – How to Pick a Plan

Each of the two hosting options has its unique advantages and limitations, and understanding these differences is key to making an informed decision. In this section, we’ll explore the essential factors to consider when choosing between VPS and shared hosting, helping you determine the best fit for your specific needs and budget.

Website Type and Size

The size of your website is one of the most important criteria when choosing among the different types of web hosting. For a modest blog with just a few pages, extensive resources aren’t necessary. A shared hosting plan would be more than adequate to ensure your website runs smoothly and efficiently.

However, if you own a large ecommerce store, you are more likely to need something more substantial. Dedicated servers might be too expensive, but VPS servers would also do a good job of handling resource-hungry websites. 

Speed and Performance

Everyone wants their website to load blazingly fast; that’s a given. However, it’s important to consider whether you truly need the power that a VPS server provides. While a VPS typically offers more CPU and RAM than a shared hosting plan, these resources won’t significantly impact performance if your website isn’t optimized.

Traffic and Resource Usage

A website generating lots of traffic is bound to exhaust more server resources. Shared hosting plans come in different sizes, but in general, they are limited by bandwidth or monthly visits. 

VPS plans are usually unmetered and have no bandwidth limits, so you can use all the resources available to you. 

However, keep in mind that if the traffic outgrows the VPS resources, your website might start crashing. If you decide to go with VPS, you should explore what options the hosting provider offers for scaling.  

Level of Security 

Your hosting plan choice will also depend on how invested and proactive you are in maintaining your website’s security. Shared servers can be more vulnerable, as you share server space with other websites, and if one is compromised, others might be affected. However, even with shared plans, web hosts implement various protective measures—such as firewalls, account isolation, and malware scanning—to keep websites as secure as possible with minimum intervention by the website owners.

With a VPS plan, you don’t have to worry about vulnerabilities from other websites since you’re running your own isolated server. However, this also means you are solely responsible for maintaining your server’s security. This includes installing security applications, setting up firewalls, monitoring for suspicious activities, and potentially hiring security specialists.

Budget

Ultimately, your choice of hosting plan will largely depend on your budget. If you’re just starting an online business or running a modest personal blog, VPS hosting might be more than you need. A shared hosting plan would suffice, ensuring smooth website operation with minimal investment. Most shared hosting plans are managed, meaning the provider handles server maintenance, allowing you to focus on running your website.

Conversely, if your website experiences high traffic or involves resource-intensive applications, you might need a more powerful and pricier option like VPS hosting. This provides a robust platform capable of handling substantial traffic. However, since VPS plans are often unmanaged, you may need to hire additional staff to manage the server, which can increase your expenses.

Final Thoughts: Is VPS Better Than Shared Hosting?

The choice between VPS and shared hosting depends on your specific needs and circumstances. If you’re a beginner, have a limited budget, or run a small website, shared hosting is a cost-effective and manageable solution. It provides essential features without requiring technical expertise.

On the other hand, if you manage a high-traffic website, need dedicated resources, or require extensive customization and control, VPS hosting is the better choice. It offers improved performance, scalability, and security but at a higher cost and with a steeper learning curve.

Ultimately, the decision should be based on the website’s size, traffic, budget, and your technical proficiency. Carefully assess your requirements to choose the hosting type that best aligns with your goals and resources.