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Shared hosting vs VPS hosting: Which is cheaper?

Last updated: Sep 11, 2024 6:04 pm UTC
By Lucy Bennett
Shared hosting vs VPS hosting Which is cheaper?

At first glance, shared hosting can be cheaper, but to start, when you want to expand your business and have more access, VPS hosting will be much cheaper. Let’s check it out


What is Shared hosting?

Shared hosting is a type of hosting where a single server is shared by multiple users or websites. This means that resources (CPU, RAM, storage) are shared, and there is no dedicated portion for each user. Shared hosting is popular as a cost-effective option for small websites, personal blogs, or beginners.

Shared hosting vs VPS hosting Which is cheaper?

What is VPS hosting?

VPS hosting, or Virtual Private Server hosting, is a form of hosting where a physical server is divided into multiple virtual private servers. VPS hosting providers guarantee that each user is allocated dedicated resources such as CPU, RAM and storage space, allowing them to independently manage their operating system and applications.


VPS hosting is particularly beneficial for larger websites, businesses, or projects as it provides greater control and enhanced performance compared to shared hosting.

Advantages and disadvantages of shared hosting

Shared hosting is suitable for smaller websites due to its affordability and user-friendly nature. It requires minimal technical skills to manage, as the hosting provider handles server maintenance. However, the shared environment exposes websites to security risks from other users on the same server.

Additionally, if any co-users consume excessive memory or experience high traffic, it can negatively impact the performance of your website due to shared resources.


Shared hosting hosts multiple websites on a single server. It is usually the plan chosen by those with small personal sites, like blogs, or those just starting out with a limited budget.

In addition, shared sites do not offer root access, which means there are limitations on certain server configurations, such as adding a firewall. However, you can purchase a third-party solution that does the same job.

Another downside is that memory on a shared server is distributed among all the sites on that server, leading to relatively low site speeds. For instance, if a site on the same server experiences a surge in traffic, the service on your site may temporarily slow down.


This is especially problematic for e-commerce sites, as site speed is crucial for e-commerce businesses.

Shared Hosting is likely not sufficient for most businesses. If you’re not managing a smaller-scale operation like a personal project, it might be better to direct your clients to another plan.

Advantages and disadvantages of VPS Hosting

VPS hosting combines the cost-effectiveness of shared hosting with an additional layer of security and dedicated memory for your use. It provides consistent site performance for medium-sized businesses and clients with more modest needs.


VPS hosting provides root access and ensures that sites are isolated from each other, making it more secure than shared hosting.

VPS is perfect for business sites that need a robust plan but are not yet large enough to require a dedicated server. However, it is not ideal for businesses that are too large to adhere to the bandwidth limits of a VPS hosting plan.

VPS fills the gap between shared hosting and a dedicated server, providing a cost-effective solution for small and medium-sized businesses. This way, you can take advantage of dedicated resources and customization without the high price tag associated with dedicated servers.


In addition, VPS Hosting has two different plans depending on how much technical support you need. You can choose between a managed or unmanaged VPS hosting plan.

With managed VPS hosting, the hosting provider is responsible for all technical aspects, including server maintenance, security, and software updates. This typically involves server configurations, software installation, and troubleshooting tasks.

In contrast, unmanaged VPS hosting offers full control and customization of the server according to individual needs. However, it also entails the responsibility for addressing technical issues, as well as managing server security and maintenance.

An unmanaged VPS is typically more cost-effective than a managed VPS since the hosting provider does not need to provide additional support and management services. However, effectively managing the server requires a higher level of technical knowledge and expertise.

In summary, businesses, especially those with limited budgets, are always advised to opt for a VPS Hosting over a Shared Hosting to run their operations without issues like privacy concerns and resource scalability.


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