So, you want to build a website?
Regardless of the niche or design ideas you may have in mind, step number one is making an all-important decision between shared hosting and VPS hosting.
Which to use will boil down to your needs. However, if you’re not in the loop about the distinct advantages and disadvantages that shared and Virtual Private Server hosting each present then the choice is tougher.
To aid you in your decision making we have put together a comprehensive shared hosting vs. VPS hosting guide.
We’ll take a look at the two comparatively and discuss the critical differences, judge the performance, and outline the security vulnerabilities.
By the time you’re done reading, you should be able to pick the perfect host, no matter the type of website you’re running, the traffic you expect to encounter, or the level of your tech skills.
Shared Hosting Overview
For individual users and smaller businesses such as personal blogs and startups, shared hosting is often the preferred choice because it is much easier for newbies to navigate a launch and often works out cheaper.
In terms of revenue, it represents 35.2% of the web hosting services industry but it has its limitations.
How Does Shared Hosting Work?
As the name suggests, shared hosting works through multiple websites with CPU, RAM, and storage all accessed via a shared server and resources.
Sharing keeps the costs at bay but the compromise is less reliable in resource allocation which ultimately affects performance.
Users also have less control, the functions are somewhat basic but more than adequate for a simple undemanding website.
VPS Hosting Overview
For those with larger website goals in mind who need more control and unwavering performance, VPS hosting presents next-level service.
Virtual Private Servers dedicate a portion of resources from the service to the customer which means they can scale up and are less limited.
Although the server is still technically shared, each user has their own allocated chunk.
VPS hosting is gaining popularity as more of us turn to making a digital living, and so by 2026, the VPS market size is expected to hit $8.3 billion. VPS is ideal for upsizing websites, eCommerce stores, and sites that require large storage or resources.
How Does VPS Hosting Work?
VPS hosting essentially splits a physical server into virtual segments that can all operate independently.
These virtual servers are dedicated to the domain user, giving them their own CPU and RAM, making site operation and performance much more consistent.
Shared vs. VPS Hosting Feature Comparison
The table below shows a side-by-side comparison of the features of both shared and VPS hosting.
| Feature | Shared Hosting | VPS Hosting |
| Performance | Impacted by the traffic and activity of other websites sharing the server | Unaffected by other server users, ensuring consistency |
| Cost | Typically cheaper somewhere between $3–$10/month | More expensive outlay, anywhere from $20–$100+/month |
| Server Management | Managed for you by the hosting provider | Can be managed or self-managed, allowing more control |
| Scalability | Usually pretty limited | Can be scaled in line with a site’s growing traffic |
| Customization | Limited control, no root access | Full root access, customizable environment |
| Resource Allocation | Resources shared across multiple websites | Dedicated virtual server with individually allocated resources |
| Security | A shared server environment with basic security covered | An isolated environment with more robust security on offer |
| Technical Knowledge | Requires zero technical expertise | Requires basic technical knowledge |
Comparing Shared and VPS Hosting Performance
If you want to appear in search engine ranking, your site performance must be on point.
Users are also impatient and accustomed to having everything rapidly delivered on a plate, so page load speeds are important for conversion rates.
Speed and Resources
Every second counts when it comes to website speed; 47% of online visitors expect a web page to load in under two seconds.
How fast your site loads and runs boils down to the host server. Sites with shared hosting are all affected by the rest, if one site experiences a spike in traffic then the rest are likely to slow.
A VPS-hosted site offers more computing power and runs independently with its speed and performance capabilities unaffected by other hosted sites.
VPS hosting has comparatively faster processing speeds, making it suitable for sites with heavy traffic or complex tasks, such as e-commerce processes and transactions.
Reliability
Shared and VPS hosting typically provide 99.9% uptime, meaning your site is likely to be accessible 24/7; however, the shared nature of shared hosting is potentially less reliable.
When traffic on neighboring websites is high, it can cause momentary issues for you, and security breaches can shut down access to your site without warning.
So, it is fair to say the VPS offers greater stability because it is isolated and unaffected.
Comparing Shared and VPS Hosting Prices
As with any decision, budget usually factors in quite highly. Between the two shared hosting is typically the more affordable option as we saw in our comparative overview table but you get the resources that you pay for so there is much to consider.
Shared Hosting Value
If you are on a limited budget, just getting started, and aren’t expecting a whole lot of traffic then shared hosting is a great solution.
Plans can cost anywhere between $2 to $10 per month. The cheaper plans and providers offer basic functionality and the higher-priced ones offer a few extra features.
VPS Hosting Value
While more expensive than shared hosting options, VPS hosting offers superior performance and control for businesses and websites that have bigger power and resource requirements.
Plans aren’t unreasonable starting at around the $10 per month mark. The prices climb incrementally according to the resource allocation that you are expecting and depending on the provider.
Management & Expertise
Another factor that is going to weigh when you decide between the two is server management options and the level of expertise required to use shared or VPS hosting.
Handling Shared Hosting
All server maintenance is taken care of on the hosting side when you choose shared hosting, so you don’t have to have any expertise.
There are no updates or security patches to worry about it will all be kept on top of for you, if you aren’t tech savvy then it is a perfect solution.
Handling VPS Hosting
VPS hosting on the other hand has more flexibility you can choose a managed service or be much more hands-on with your site and opt for an unmanaged VPS hosting plan.
If you choose the latter, you will be responsible for all server management, software installation, updates, and security.
This is usually the best option for businesses with their own It departments because it requires a variety of technical skills.
The Scalable Growth Factor
One of the biggest considerations is where you see your website in the future.
Are you likely to grow a huge audience and news far more resources and better power to keep up with the higher incoming traffic?
If so, you will want a hosting with good scalability.
The Scalability of Shared Hosting
The reality of shared hosting plans is that they are designed with smaller websites in mind.
If you have too much traffic you are going to experience slow performance and slither further and further down in search engine rankings as time goes on and your audience grows.
Eventually, VPS hosting is going to be an inevitable necessity.
The Scalability of VPS Hosting
VPS hosting usually comes with specific plans based on the amount of CPU, RAM, and Storage on offer. That means you can start with a smaller set-up and scale up as you grow flexibly.
Shared vs. VPS Hosting Customization
The level of control that site owners have is also dictated by the type of hosting chosen. If you want to be able to customize then it could be a make or break factor for you.
Shared Customization
As a shared hosting server has to handle numerous sites, they are typically configured with a few pre-set options.
This means user customization is limited, but that isn’t necessarily a bad thing; in terms of ease of use, it is ideal for beginners who don’t want the extra technical responsibilities.
VPS Customization
In contrast, VPS hosting, with its delegated virtual servers gives users the ability to install custom software and optimize their servers with configurations for specific needs. For web developers this is key and it is ideal for businesses that want custom solutions.
Shared Hosting: Pros & Cons Summary
While it is undeniably a great entry-level solution, shared hosting limitations might not suit all website requirements. Below are its advantages and disadvantages.
Shared Hosting Pros
- Budget-friendly and good value for entry-level users.
- Has user-friendly control panels, keeping everything easy for non-technical users.
- All maintenance is handled by the hosting provider.
Shared Hosting Cons
- Resource location can be limited at times when other users are experiencing heavy traffic, reducing site performance.
- If there is a security breach elsewhere, it potentially affects all sites on the same server.
- Server configuration and software installation is much more limited.
VPS Hosting: Pros & Cons Summary
While arguably the more sophisticated hosting options, VPS hosting also presents disadvantages for some.
VPS Hosting Pros
- The site receives dedicated CPU, RAM, and storage for optimal performance.
- Root access control is available, allowing users to install custom software and configure their own server.
- Isolated virtual servers have lower security risks.
VPS Hosting Cons
- Isn’t as accessible for those on a tighter budget. expensive than shared hosting, making it less suitable for those on tight budgets.
- Requires a bit of technical know-how to run unless you have the funds for a managed VPS service.
A Side-by-Side Comparison of the Pros and Cons of Each
| Factor | Shared | VPS |
| Performance | Traffic spikes from one site impact others | Consistent performance |
| Cost | Affordable | Pricier |
| Security | Basic and shared | Advanced and individual |
| Maintenance | Fully managed | Option to self-manage |
| Control | Fundamental | Server environment control available |
| Ease of Use | Easy to use | Requires technical expertise |
| Scalability | Limited | Fully scalable |
| Customization | Limited | Root access customization |
Shared V’s VPS Security
The level of security that each type of hosting provides varies depending on the provider and the plan. Security is a big consideration, especially for sites handling sensitive data..
Shared Security
The shared server presents a higher cybersecurity risk than its virtual counterpart. With multiple sites operating from one destination, if one becomes compromised, they can all potentially be.
If an update is skipped by a neighboring site you could find your up-to-date site in trouble.
Remember, even a company as huge and mighty as Microsoft itself was recently taken down due to a faulty Cloudstrike update, highlighting the concerns surrounding relying on one digital provision.
However, the updates are generally managed from the host end, and many shared hosting providers have strong baseline features in place to help safeguard their users.
That is why it is important to go with a reputable one and check that they are using firewalls, scanning regularly for malware, and providing SSL certificates.
VPS Security
The risks are less inherent with VPS hosting because you are isolated from other users, whatever cyber-battles they may be facing you are operating independently.
VPS users also have root access should they wish and can install advanced security tools to cover all of their bases.
They can use a variety of software to bolster their defenses and add multiple layers of protection, like using the safest web browsers to safeguard data.
Web Hosting Security Risks
There are many vulnerabilities that can be exploited regardless of the hosting plan chosen; below are two of the major security risks.
Botnets
By accessing a web server with command and control software at a framework level attackers can begin to build botnets, or in other words, agroup of internet-connected devices that all run bots, and spam others, or steal data.
DDoS Attacks
We saw DDoS attacks double in the first quarter of 2024, which is a significant jump, and web hosts not prepared for them may struggle to recover.
Distributed Denial of Service attacks can sometimes start with botnet-building; the idea is to flood a server with so much activity that it disrupts services and allows attackers to carry out other malicious activities.
Configuration and Software Security Risks
Hosting is also left vulnerable without all the crucial software security patches in place provided by regular updates, or without the correct configuration and maintenance being routinely performed.
Server Misconfigurations
Hackers can easily exploit poorly configured servers and gain unauthorized access and control over them.
Software Vulnerabilities
Regularly updating all software is crucial if you want to reduce potential software vulnerabilities, especially for sites on shared hosting servers.
Shared Hosting- Specific Security Risks
Shared hosting plans, while cost-effective, come with increased risks due to the shared nature of the server environment. If one site is compromised, others on the same server are also at risk.
Shared Environments
Hackers can easily gain broad access by breaching one account because the physical resources are non-siloed.
IP Address Sharing
Likewise, poor behavior from one site can get everyone in trouble as the IP address is also shared if one site gets blacklisted, you all get tarred with the same brush, making site recovery difficult.
Advanced Security Risks in VPS Hosting
Although they are considered far less vulnerable because of the software customization potential, VPS hosting is still vulnerable to advanced security risks, as we are currently seeing with the hacking group TeamTNT that has emerged.
In one of the latest campaigns, TeamTNT targeted CentOS VPS infrastructures and encrypted the hosting company’s VMware ESXI servers.
The hacking group has been employing brute force attacks on Secure Shell keys and breaking the client-server architecture to upload malicious scripts and modify file protections with their backdoor access.
TeamTNT is pretty persistent in its attempts to gain control over the compromised systems. This has been causing havoc for several companies relying on them.
They aren’t the only ones either; Panera and Omni Hotels also fell prey to ransomware attacks. Fortunately, they were able to restore from a previous backup, but Chilean hosting provider IxMetro Powerhost was not so lucky as the threat actors managed to encrypt their backups.
API Gateways
VPS hosting requires an Application Programming Interface to streamline the way that more than one device communicates and processes. If they aren’t well-secured, they can be an easy gateway into the system for hackers.
Virtual Machine Escape
Although the physical server divides everyone into siloed sections, the hypervisors used to separate virtual machines can be exploited and used to access the next by sophisticated hackers if they aren’t well-secured.
The Bottom Line
The choice between shared hosting and VPS hosting boils down to a number of factors, most of which are dictated by the type of website or size of the business and your budget.
Other things that can make a real difference include your level of technical ability and how involved you want to be with software and server management.
But most important of all, is judging whether the performance provided meets your requirements and whether the threats that come with operating digitally can be dealt with.
Ultimately, projects with lower budgets, minimal traffic, and resource needs should probably be looking at shared hosting options until such a time arises that their site outgrows the scalability.
VPS hosting is likely the right choice for more ambitious online ventures, especially those requiring consistent performance speeds and higher-security protocols or more control and customization.