Types of Web Hosting: Key Differences & How to Choose One

When you’re building your online presence, one of the first decisions you’ll face is choosing the right type of web hosting for your website. With so many options available, it’s easy to get overwhelmed by the technical jargon and differences between hosting services. What are the different types of web hosting, and more importantly, how do you know which one is best for your website?

There are plenty of resources online about web hosting, but many of these terms may be confusing, as the limits between the different types of hosting are blurred. In this article, we’ll break them down clearly and explain the differences, so you can easily choose the right one for your specific needs and use case. Whether you’re launching a small business site, an ecommerce store, or a personal blog, this guide will help you confidently decide what hosting you need – without the stress!

Why Choosing the Right Hosting Type Is Crucial

There are several types of web hosting, but before we dive into the specifics, it’s important to understand just how crucial your hosting choice is for your website. Hosting isn’t just the “place where your site lives.” 

Choosing the right hosting can do more than just boost your website’s speed and stability. It can streamline your workflow and also reduce costs thanks to many automated features. One-click setups and auto-updates, for example, simplify the process of creating your site and keeping it up to date. 

Security tools like daily backups and built-in protection solutions safeguard your data and provide peace of mind, helping you avoid costly downtime or data loss. Solutions such as a CDN and caching tools can help improve user experience by reducing website load times and speeding it up. 

There are many, many other additional solutions and services a web host can equip you with, so choosing a reliable provider is key. If you’re just starting out, it’s worth looking into hosting options carefully, as it can influence the success of your site and, in turn, your business.

Types of Web Hosting Based On the Server Setup

When discussing types of web hosting, it’s helpful first to understand that hosting services can be categorized based on two main factors: the server setup (how the resources are allocated) and the additional services you receive on top by the hosting provider. Let’s first take a look at the web hosting types, based on the server setup.

Generally speaking, there are four main types of hosting: 

• shared hosting
• VPS (Virtual Private Server) hosting 
• cloud hosting
• dedicated hosting

1. Shared Hosting

Shared hosting, often referred to as “web hosting,” is one of the most popular types of hosting because it’s affordable, easy to use, and includes some level of managed service to assist the user. With shared hosting, multiple websites are hosted on the same physical server, sharing resources like CPU, RAM, and disk space. 

Typically, shared hosting is considered the cheapest form of hosting, which is why it also is the most widely used, but as you will see later in this article, the price of the hosting solution mostly depends on the service added to it. So don’t hurry to judge yet.

One of the biggest advantages of the shared service is that you don’t need much technical knowledge to use it. The servers are preconfigured by the hosting provider with all the software needed to run the server and tools that let you access your space and resources allocated on the machine.

One of the main disadvantages of shared hosting is the fact that your website does not get a dedicated share of the server’s resources. This means that if you have 100 sites on the same machine, and one of them gets very busy (or falls under a DDOS or other attack), that busy site might consume all of the server resources for some time and leave nothing for the rest. 

That means your site would become unresponsive, or even go down, just because one of your co-tenants abused the CPU or RAM of the machine. Naturally, good hosting providers would never let that happen to such an extreme, but the fact is the availability of your site depends on the way the other sites use the shared hosting service. 

Shared hosting is typically an excellent choice for businesses or individuals just starting their websites, or for more static sites that don’t require extensive server resources, even as their traffic and popularity grow. That said, as you’ll see later, shared hosting can also work well for dynamic online shops and high-traffic sites if the included managed services offer built-in performance and optimization solutions. 

For example, SiteGround offers shared hosting plans that vary in terms of features and server resources dedicated to them and the fact is, on the GrowBig and especially the GoGeek plans, SiteGround successfully hosts many online shops thanks to the higher server resources allocated to the accounts, the smart caching technology applied to shops, and the performance optimizations offered out of the box.

2. Virtual Private Server Hosting (VPS)

Virtual Private Server (VPS) is another type of hosting where you share a physical server with other users, but have your own dedicated share of space, CPU, and RAM resources. Using virtualization technology, VPS hosting divides a server into multiple virtual environments, giving each client their own dedicated portion of resources, such as CPU, RAM, and disk space.

This setup means that while you share the server hardware with other users, your hosting remains isolated and your resources are guaranteed, making it generally a more costly option compared to shared hosting, yet more affordable than a dedicated server. With the appearance of mass-market cloud hosting solutions which offer scalable and flexible resources, the VPS server technology is becoming obsolete. 

3. Cloud Hosting

When you think of “cloud” you probably think of Google Cloud and Amazon – these big names with huge data centers and complex service configurators. Well, cloud hosting is no longer a privilege for the technically savvy DevOps and huge enterprises that pay big bucks for infrastructure. Cloud hosting has become a very commoditized service that even small websites without an engineering team could comfortably sign up for.

What is cloud hosting? Cloud hosting utilizes a network of interconnected servers, virtually sharing their CPU, RAM, and space, creating a high level of redundancy of the service and resource scalability. With cloud hosting, resources can be quickly adjusted, meaning you can easily scale up or down based on your website’s needs in seconds. Such an upgrade does not require the physical addition of a hard drive or memory card, and there is no rebooting of the machines – you just claim more of what’s already in the cloud. 

The main benefit on top of scalability is the redundancy. Even if one of the machines in the cloud goes down (it happens more often than you think), the other machines take over and continue to deliver the service. This means that your website will not experience downtime and you get the highest level of redundancy and availability compared to all other standard hosting setups.

The downside of signing up for cloud hosting or VPS is that you need to know in advance how much CPU, RAM, and space you need so that your site gets properly served. While cloud hosting has a remedy for this with the option for very quick scaling or even automatic scaling, VPS does not offer that. 

In contrast to shared hosting, on VPS or cloud hosting without automatic scaling, a sudden traffic spike could make your site unresponsive if it temporarily needs more CPU or RAM, as it would hit its hard limits. On shared hosting, however, your site can tap into the larger pool of server resources, meaning someone else’s site might slow down instead – allowing yours to stay online.

4. Dedicated Hosting

Another main type of hosting is dedicated hosting, which involves renting an entire server exclusively for you, and thus providing you with access to all of the server’s resources. 

Unlike virtual servers, with this type of hosting you get the performance of a dedicated machine, making them suitable for specific high-demand scenarios. This type of hosting is designed for websites that require significant computing power. Clearly, dedicated hosting is the priciest option of all, with or without managed service on top. 

Dedicated servers come managed or unmanaged. Many technical experts and enterprises would rent dedicated servers as bare metal (a dedicated physical server with direct access to the hardware) in order to add the software of their choice, often experimenting with the setup and settings to get specific performance. For smaller companies and less tech-savvy clients, you should be looking for a managed dedicated server. 

Types of Hosting Based On The Services Added

Beyond choosing the right server setup, hosting can also vary significantly in the level of additional services you get on top (features, tools, management interfaces, support). Every main type of hosting – whether shared, VPS, cloud, or dedicated – usually comes with maintenance and support services, depending on the hosting provider and their hosting packages.

Managed vs Unmanaged Hosting

In terms of services, hosting generally falls into two main categories: managed and unmanaged hosting. With managed hosting, the provider installs and manages essential server software, such as Apache web server, Linux OS, MySQL, PHP, and cPanel, and also handles server setup and maintenance. Additional services like application installations, backups, security and performance solutions, and tailored support for specific CMS applications like WordPress or Joomla are also available, but may vary depending on the host and the selected price package. 

Using a managed service relieves you of much of the technical responsibility, making managed hosting a good fit for users without specialized tech knowledge or those who want to focus on other aspects of their website. 

In contrast, unmanaged hosting leaves all of these responsibilities in the user’s hands, offering greater control and flexibility, but requiring technical expertise. This option is often suitable for developers or businesses with dedicated IT staff to manage and optimize the server themselves. 

Shared hosting is the one exception, as it always comes with a managed service layer by default. This is because shared environments require consistent oversight from the provider to ensure stability and security among all users on the server.

Now, let’s take a closer look at the types of web hosting options, based on the additional services offered on top of the server setup, as well as the specific needs, and use cases. 

Hosting Optimized for Specific Applications (Managed WordPress Hosting)

Hosting for specific content management applications like the popular WordPress, Joomla, Drupal, Moodle, and others means that the hosting environment is optimized to support the specific technical requirements and performance needs of the chosen application. With this type of hosting, you can be sure that your provider fully supports the application, often enhancing it with unique, tailored features and tools.

With managed hosting for specific applications, you’re also getting a hosting environment designed to help your chosen platform thrive. Whether you’re using WordPress, Joomla, or another platform, managed hosting for specific applications offers convenience, reliability, and performance optimized for your CMS.

Managed WordPress Hosting

For instance, managed WordPress hosting handles the full scope of server and application management so you can focus on your website content and business growth rather than application maintenance. This means the hosting provider handles essential tasks such as server maintenance, WordPress core and plugin updates, security patches in case of exploits, performance improvement solutions, and offers tools facilitating the workflow for WordPress users. 

WooCommerce Hosting

WooCommerce hosting is designed specifically for online stores built with WordPress and its WooCommerce plugin. WooCommerce hosting provides a range of specialized tools and user-friendly interfaces geared toward managing the needs of clients using WooCommerce for their shops.

What is specific for online shops is that they are very dynamic – every site visitor and each order they attempt to submit calls for database and PHP queries that are unique and cannot be cached, which normally can be done with more static sites. This makes e-stores more resource-heavy and in need of additional optimizations on server and application levels. Without these optimizations, the site can become significantly slower, leading to a poor user experience and potentially resulting in lost conversions.

As your store grows, this type of web hosting often provides options to handle increased traffic seamlessly, allowing you to focus on expanding your business without worrying about performance issues.

Email Hosting

Email hosting is another specialized type of hosting where the focus is on the email service you get on top of your core server setup for the needs of your business. Email hosting dedicates server resources solely to managing email accounts, communications, storage, and features. 

In addition to the basic server setup, email hosting packages include services like SMTP for sending emails, POP which allows users to download emails from the server to their local device for offline access, and IMAP, a protocol used for receiving emails that allows users to access and manage their emails from multiple devices. These protocols ensure that your email service is accessible – whether you’re on a computer, phone, or other device – and can synchronize across platforms.

One of the key features of email hosting is the enhanced security and anti-spam measures included to protect your inbox and reputation. Email hosting providers usually implement advanced filtering and scanning tools to block spam, detect malware, and prevent phishing attacks. These security layers help ensure that both incoming and outgoing communications are secure and that sensitive business information is protected.

Reseller Hosting 

Reseller hosting is a type of hosting with additional services, designed for individuals or businesses that need to manage multiple websites while providing hosting services as part of a broader offering. This type of hosting is popular mainly among developers, freelancers, and web agencies. 

Essentially, reseller hosting operates on top of shared, VPS, cloud, or dedicated setups, allowing you to create multiple hosting accounts for your clients, using standard configurations or custom resource packages tailored to their needs. Naturally, it depends on what kind of reselling you wish to do and how much flexibility you need. 

Some hosts offer volume discounts for clients who prepay or create multiple shared hosting accounts, which the client then resells at regular or custom price to their end clients – a very standard form of reselling. The more sophisticated solutions, however, allow the reseller to create multiple client accounts within the same hosting plan. This usually happens on VPS, cloud, or dedicated server setups. 

One of the main advantages of reseller hosting is that it empowers you to purchase hosting resources from a provider and then resell them under your own brand – this is usually called “white-label” reselling. This model enables you to build a hosting business without the need to manage servers, but only taking over the client-facing support. You benefit from the hosting provider’s technical expertise while creating a unique brand experience for your clients.

While you’re responsible for providing customer support to your clients, the backend management, including server maintenance, security updates, and performance optimization is handled by your host. Note that it’s important to choose a reliable hosting provider, as the performance, security, and reliability of your service will directly impact your clients’ satisfaction.

SiteGround offers reselling service on top of its GoGeek (shared plan) and its cloud plans, where resellers can create unlimited websites and provide white-label access to these sites to their end clients. This means that the end client will not know that SiteGround is the original service provider, but will contact the reseller on all hosting matters. 

In our cloud plans, we have included an additional reseller convenience – the option to create custom hosting plans that are tailored to the specific needs of the end clients. Each plan includes a different share of resources and tools, giving you the flexibility to cater to various client requirements.

How to Choose the Right Type of Hosting for Your Site?

When evaluating hosting options, it’s essential to look beyond just the server type, whether shared, VPS, cloud, or dedicated, and consider the complete hosting package. It’s always beneficial to have essential extras like SSL certificates, automated backups, CDN, and email that can enhance your website’s security, performance, and usability. These features are crucial for creating a reliable and professional online presence.

It’s also critical to consider your specific usage needs. For instance, if you are planning to host a WordPress site and prioritize ease of use, a managed WordPress hosting service is ideal for you, as it offers specialized tools and support tailored for WordPress users. On the other hand, if you have a developer on your team, consider a hosting provider that offers collaboration tools so that you can easily give them controlled access to your websites. 

If you want to make the best choice, another important factor in your decision should also be the balance between price and value-added services. Shared hosting is typically the most affordable option, making it an excellent choice for those just starting out. However, depending on the additional features you need, the overall cost can vary. 

To help you navigate the selection process, here’s a quick overview of some key points to remember and consider:

✅ Understand your needs: Evaluate your website’s goals. The type of site you’re creating will influence your hosting requirements. Start by asking yourself a few questions:

• What is the application you plan to use? Filter providers that are focused on offering services for it. If you are not sure, look for providers that offer a free “sitebuilder” in their bundles.
• Does the host offer security and performance solutions? You might not need these right now, but eventually one of the two or even both issues could arise. You may look for terms like caching, WAF, custom PHP and MySQL setups, and more.
• Do you need email services? Look at the features list and choose only those providers that offer email services in their plans.
• What other services do you want and are they paid extra? Maybe SSL (everyone needs that!), CDN (mostly sites with geographically dispersed traffic), backups (an absolute must), domain (a free domain might be a good value if added to the mix), collaboration access (so your developer can get access without compromising yours), or others? When you prioritize these, then you start comparing which host on the shortlist is giving better value in their plans for the price asked.

✅ Consider your budget: Determine your budget for hosting. Generally, shared hosting is a popular, cost-effective option, while cloud and dedicated hosting may incur higher costs. Remember, though, to look for the balance between price and value-added services. A managed shared hosting plan with a variety of features may serve you better than a cloud option that lacks proper management tools or flexibility. 

The most important advice when it comes to budget: Don’t spare a few bucks per month just because it feels like you can compromise a few tools or features and they don’t seem so important. Paying $20, even $40 per month could be a game-changer and a business savior when things go bad.

✅ Assess your tech expertise: If you’re not particularly tech-savvy or you simply wish to focus on your business rather than server and website maintenance, opt for managed hosting options that come with an intuitive client dashboard and comprehensive site tools, along with reliable 24/7 customer support.

✅ Read reviews: Research recommendations from trusted sources, online communities, or groups related to your niche. User experiences can provide valuable insights into the quality and reliability of different hosting providers.

We hope this guide has equipped you with the insights you need to choose a hosting type that aligns with your website’s goals and needs.

FAQs On the Types of Web Hosting

Which Type of Hosting Is Best for Beginners?

For beginners, shared hosting is often the most suitable option. It’s affordable, user-friendly, typically packed with useful features, requires little to no technical knowledge, and includes customer support. Most hosting providers offer easy-to-use control panels and one-click installations for popular content management systems (CMS) like WordPress, making it simple to get started. SiteGround, for example, leverages cloud infrastructure even for their shared hosting plans, offering an added layer of redundancy and performance that can be beneficial.

Which Type of Hosting Is Best for an Ecommerce Website?

Ecommerce hosting is often the best choice due to its specialized features. This type of hosting typically includes integrated shopping cart systems, payment processing features, and enhanced security to protect sensitive customer data. Plus, most ecommerce hosting providers offer scalability, which is vital for growing online stores. As your business expands, you may experience spikes in traffic, especially during sales or promotions, so it’s beneficial to have this feature out of the box.

What Is the Best Type of Hosting?

The best type of hosting greatly depends on your specific needs, goals, usage, and technical expertise. For most personal projects and online businesses starting out, shared hosting is a great starting point due to its ease of use, variety of tools, and affordability.