Shared Hosting vs VPS Hosting

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Updated on July 24, 2024
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Start your hosting journey today as we reveal the seven key differences between shared and VPS hosting.

Hosting can be an intimidating subject. If you’re not overly tech-savvy, it’s difficult to even fully understand what hosting is, let alone know what the different types are!

It’s our job to rectify all of that. At Website Builder Expert, we’ve been around the block a few times, and know all the tricks of the trade when it comes to web hosting.

Not only that, we’ve also conducted our own, real-life research to help you choose the right hosting provider for your needs. But let’s start with the basics.

There are many different types of hosting, but we’re going to focus on two of them: shared hosting and virtual private server (VPS) hosting.

What is Shared Hosting?

Shared hosting means you’ll be sharing a server and all of its resources with other sites. This includes bandwidth, storage… the lot.

What is VPS Hosting?

VPS hosting creates a virtual environment that imitates a dedicated server (where you get a server and all of its resources to yourself) – but this is within a shared hosting environment.

Throughout this article, we’ll tackle the main pros/cons, and show you the top-rated providers for each type of hosting. We’ll also talk through the main areas to be aware of, assess the key differences, and pinpoint which hosting type is right for you: shared hosting or VPS hosting.

Key Differences Shared Hosting VPS Hosting
html Share resources with other websites on your server. If one reaches the limit, the others will also run out. Resources are still shared, but you have a greater say over your website's own personal limits.
html Generally very secure, but if one site on your server gets hacked, you're at risk. Can install personal security software to ensure you're protected, even if others on your server aren't.
html Good uptime and enough bandwidth to support hundreds of visitors a week (provided other sites don't use too much!). Good page loading speeds, and enough bandwidth to support thousands of visitors every week.
html Set limits on the amount of resources you have; very little customization. More control over your resource limits; can be customized with extra software.
html Not very scalable beyond static websites. Capable of growing with your site, right up to massive corporate sites.
html The cheapest type of hosting on the market. More expensive than shared hosting.

Another way to get your head around the difference is to think of them as being similar to renting property.

With shared hosting, you share space on a server with other websites. It’s like renting a room in a shared house – you’ve got your own little area, but you’re part of a larger, communal space.

Shared hosting is the cheapest type of hosting there is. It’s got its benefits but, naturally, things can get a little cramped at times.

VPS hosting is where you have more than just one slice of a server. This can be thought of like renting an apartment in a building block – more rooms, more space, more flexibility, and a little more expensive. You have a greater level of control, but you’re still operating within a shared server with others.

Generally, shared hosting is for static websites – in other words, websites with fixed content that doesn’t change, no matter who visits it. For example, a resume site typically has set information on its pages. Whereas a dynamic site, such as a multilingual website or ecommerce store, will need to have adaptable content depending on a reader’s location or recent cookies.

To summarize, shared hosting is best for basic personal sites, like blogs and startups. You won’t have access to a wealth of features, ironclad security, or ultra-fast loading speeds but, then again, you don’t really need all that.

On the other hand, VPS hosting is a step up and is ideal for small businesses, online stores, and larger personal sites. For a very reasonable rise in cost, you’ll see an increase in features, security, and performance.

VPS hosting is also great if you’re looking to grow your site. Think of it as an investment – you want to pick a plan that matches your ambitions, not just one for the here-and-now.

Further Information

While shared hosting is the least expensive option, VPS can also offer great value for money – the trick is knowing which type of hosting you’ll need. Most beginner and personal websites will be more than prepared with the features of shared hosting. But, if you’re setting up an online store or a site that’s likely to outgrow those basic furnishings, then you’ll want to upgrade to the more scalable and personalized offerings of VPS hosting.

Hosting Type Pros Cons
Shared Hosting html – No dedicated resources
– Higher security risks
– Sites you share a server with will affect your performance
VPS Hosting html – Slightly more expensive than shared hosting
– Requires basic technical knowledge
– You’ll need to have a vague idea of how much storage and bandwidth you want
The Winner

VPS hosting offers more resources

You get more resources with VPS hosting than with shared hosting. More hardware equals more resource. You won’t have to worry as much about how other websites are affecting your performance, meaning you can get on with more important matters. With shared hosting, you’re too reliant on those around you.

Everyone needs certain resources. Your mobile plan, for example, comes with a set limit on calls, texts and data. Hosting is the same, except the resources are things like storage space and memory.

As the name suggests, on a shared hosting plan, you share resources with the other sites on your server. If one website uses up too much bandwidth, the other sites will all suffer. It’s a bit like wanting to cook in your shared kitchen when all the hobs are already taken.

VPS hosting has few limitations. Because you hold a larger portion of the server’s hardware, you have more resource. You’ll also get root access over the server environment, which basically means you can install extra software and edit any file on the server.

HostGator, our top choice for shared hosting, with an overall score of 4.7 out of 5, impressively boasts unlimited storage and bandwidth across its shared hosting plans. But, remember, it’s still shared with others! Bluehost, our leading VPS hosting provider, with an overall score of 4.6 out of 5, also offers generous storage and bandwidth allowance on its plans, as well as up to 8GB of RAM and full root access.

Further Information
The Winner

VPS hosting will keep your website secure

With VPS hosting, security is more under your control than with shared hosting. You also get greater security features from your provider. We’d advise anyone who processes users’ personal data through their site to steer clear of shared hosting.

We’d like to start by saying that, for the most part, shared hosting is safe. Providers do a lot of work around their security, but there are no guarantees. This, again, is down to the other sites you share a server with.

If one site makes a mistake and has a security breach, every site on that server is then vulnerable. You can lock your bedroom, but if one of your housemates leaves the front door open, you’re still at risk!

VPS hosting is more secure. For starters, you’re on a server with other VPS users, meaning everyone has a higher level of security. You also have more say over your own protection, just like how you’d be free to install CCTV and alarms in your own flat. There’s no need to panic, even if someone leaves the entrance to your block open.

While HostGator’s shared hosting security features are useful, such as a free SSL certificate, they do fall short of the protection VPS hosting provides. For example, InMotion’s VPS plans also come with a free SSL certificate, as well as added SSH and DDoS protection.

The Winner

VPS hosting outperforms shared hosting

You generally get more bandwidth with VPS hosting, and it’s better equipped to deal with spikes in traffic. Shared hosting is absolutely fine for small sites without large volumes of visitors, but be wary of how a sudden increase in a site’s popularity will impact performance.

You can have all the resources and security in the world, but what your visitors really care about is how smoothly your site runs. Things like the amount of bandwidth you get will vary from plan to plan, while uptime varies and is dependent on the provider you choose.

Research suggests that nearly half of all internet users expect web pages to load in two seconds or less. With that in mind, you’ll want to be on a plan that can handle larger waves of traffic – without compromising on loading speeds.

Shared hosting providers, such as DreamHost, perform really well in our site speed and uptime testing. In fact, DreamHost is our second best hosting provider for site speed and scores 3.8 out of 5 for shared hosting performance.

InMotion didn’t perform as strongly in our site speed and uptime testing, but its VPS hosting plans score an impressive 3.7 out of 5 for performance. Its VPS plans are generous when it comes to storage space, RAM, and cores, all of which are important to keep your site running smoothly.

Further Information
The Winner

VPS hosting beats shared hosting for customization

VPS hosting is a better option when it comes to set up and customization. Especially since most people will opt for a Managed plan – you don’t need to worry about setting anything up, and it’s so much more flexible. With VPS hosting, you decide your own limit needs; shared hosting is far more regimented.

Your hosting configuration (set up) is usually taken care of for you. On shared hosting plans, set up is all sorted by your provider, meaning you can get on with more important things.

VPS is a little more complex. There are two different types of VPS hosting: Managed and Unmanaged. Managed plans are the same as shared hosting, in that the set up process is taken care of for you. With Unmanaged, it’s up to you – although this only tends to be used by developers and experts.

When it comes to customization, there’s a clear difference between the two hosting types. To explain, let’s use your mobile plan as an example. While shared hosting has set limits which you cannot exceed, like call minutes and the amount of data, VPS hosting lets you customize your plan, so you can alter your limits on a month-to-month basis.

Additionally, VPS hosting providers, such as Bluehost, allow users to manage their websites via a single dashboard and grant them full root access. Most hosting providers do provide excellent help and support services, but HostGator is our top choice in this department, scoring 5 out of 5 for support overall.

The Winner

VPS hosting wins for scalability

Shared hosting has its perks and, for personal sites or small startups, it fits the bill. But if you want to scale without the worry of your website crashing, VPS hosting is the one for you.

The best way to look at shared hosting vs VPS hosting is to decide what your ambitions are. If you own a small website that only gets a few hundred visitors per week, and you don’t plan on scaling up too much, shared hosting is perfect.

Problems start to creep in when your website grows. If your visitor count turns from the hundreds to the thousands, your nice homepage could turn into an error message.

VPS hosting can grow with you. If you’re a small business, paying a couple of bucks extra each month at this stage will give you that leeway. Sure, living in a shared house is fine if it’s just you, but when you get a partner, things can become a little cramped!

The Winner

Shared hosting beats VPS hosting on price

Seriously! If you want to host your website on the cheap, there’s no real argument, as shared hosting is undeniably cheaper than VPS hosting. It’s still important to note, though, that shared hosting is a little limited for sites with big ambitions.

Now that the technical stuff is out of the way, it’s onto the important question: how much is all of this going to cost?

Well, the first thing to mention is that both shared and VPS hosting have different tiers of pricing. Naturally, the more expensive the plan is that you choose, the more features and tools (mentioned above) you’ll get access to, such as resource, security, and performance, etc.

Secondly, all providers mentioned in our table have different promotional prices. These are discounted sign-up rates that are valid for the first few months (or years) of your plan. HostGator’s shared plans have an introductory offer of up to 65% off, and Bluehost’s VPS plans start at $19.99/month if you sign up for a 36-month contract.

With that in mind, the prices you see below focus solely on 12-month subscriptions to ensure we fairly compare the hosting types and providers:

Provider Shared Hosting VPS Hosting
HostGator $3.95–$7.25/month $23.95–$59.95/month
Bluehost $2.95–$13.95/month $24.99–$83.99/month
InMotion $3.49–$14.99/month $24.99–$59.99/month
DreamHost $2.95/month $13.75–$110/month

From our list of top hosting providers, DreamHost offers the cheapest shared hosting plans, scoring 4.4 out of 5 for price in our shared hosting research. And, for VPS hosting, Bluehost is the money-saving option for users, scoring 3.9 out of 5 – the best overall price rating in our VPS hosting research.As you can see, shared hosting is the cheaper of the two. It’s great for personal websites and startup businesses that need an online presence. If you’re still looking for the best way to make a website, why not check out our website builder comparison chart?

Website builders are online platforms that help you create a website without having to code. They cost a similar amount to shared hosting plans, but include the design of your site, domain, and hosting. Website builders are the perfect comprehensive solution.

We’ve mentioned our research a few times throughout this article. It’s what sets us apart from other websites, and something we take great pride in.

We’ve reviewed tons of hosting providers, testing their features, analyzing their help and support, and seeing if they give you real value for money.

Because different types of hosting meet very different needs (as you now know), we’ve researched each provider and tested each type of hosting they offer. So, who comes out on top?

Top 3 Shared Hosting Providers

HostGator

HostGator’s our winning choice for shared hosting – its plans offer unlimited storage and bandwidth, one-click WordPress installations, free website transfers, an SSL certificate, and a free domain, among other features. You’ll also get to enjoy automated backups and unlimited email accounts!

Bluehost

Coming in second place, we have Bluehost, scoring 4.5 out of 5 in our shared hosting research. Bluehost has four plans to choose from, each of which have beneficial upgrades. From the Plus plan onwards, you’ll get unlimited websites, a free domain, and a free SSL certificate. However, you’ll need to pay for the Choice Plus plan to have automated backups and multi-site management tools.

DreamHost

Custom-built control panel, automated daily backups, unmetered bandwidth – check. With DreamHost, you’ll also get 24/7 ticket support, live chat help, a free SSL certificate, and automated WordPress migrations. Unlimited website and email accounts are also available, but only on the Shared Unlimited plan.

Top 3 VPS Hosting Providers

Bluehost

Bluehost’s affordable plans win across our VPS research, scoring 4.6 out of 5 overall. Enjoy unlimited bandwidth and up to 120GB of storage space on the leading provider, as well as a free IP address and unlimited domains.

HostGator

HostGator’s VPS plans provide between 2-8GB of RAM (Random Access Memory), full root access, 2 cores, up to 240GB of storage, and unmetered bandwidth. Each plan also comes with weekly backups and 24/7 support.

InMotion

InMotion’s been knocked down a few pegs since our last round of research – it was previously our top choice for shared and VPS hosting. Now, it rounds out our top three for VPS hosting, scoring 4.4 out of 5. Its plans offer up to 360GB of storage, a free SSL certificate, and reliable security features. Unlimited bandwidth is also available, but only if you choose the 8GB RAM plan, or above.

Further Information

You should now have a good understanding of what both shared hosting and VPS hosting are, and the key differences between them. Not only that, you’ll know which type of hosting suits which type of website.

To refresh your memory, here’s a quick recap of shared hosting vs VPS hosting, looking back at the areas we’ve discussed and summarizing the differences:

Key Differences Shared Hosting VPS Hosting
html Share resources with other websites on your server. If one reaches the limit, the others will also run out. Resources are still shared, but you have a greater say over your website's own personal limits.
html Generally very secure, but if one site on your server gets hacked, you're at risk. Can install personal security software to ensure you're protected, even if others on your server aren't.
html Good uptime and enough bandwidth to support hundreds of visitors a week (provided other sites don't use too much!). Good page loading speeds, and enough bandwidth to support thousands of visitors every week.
html Set limits on the amount of resources you have; very little customization. More control over your resource limits; can be customized with extra software.
html Not very scalable beyond static websites. Capable of growing with your site, right up to massive corporate sites.
html The cheapest type of hosting on the market. More expensive than shared hosting.

While shared hosting is best for personal sites and startups, VPS hosting wins for dynamic, larger sites and small businesses. VPS is more expensive than shared hosting, but in return you get more flexibility over your resource limits, greater security, and improved performance. However, performance levels still shouldn’t be an issue with shared hosting, and it’s pretty much designed for beginners.

If shared hosting sounds like it’s for you, we’d recommend checking out HostGator, Bluehost, and DreamHost. Similarly, if you need the more advanced VPS hosting, take a look at Bluehost, HostGator, or InMotion.

Further Information
Note

Website Builder Expert aims to provide you with honest data. That’s why we conduct our own research and obtain direct, personal insight.

Written By

Headshot of Emma Ryan

Emma is Deputy Editor of MVF’s B2B brands, specializing in website builders, ecommerce, marketing, and vibe coding. Emma combines her wealth of knowledge and years of hands-on testing with a passion for helping small businesses and website owners navigate the highs and lows of being online. Her work has been featured in Newsweek, Digiday, TechRound, and Industry Today.

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