Shared Hosting vs VPS Hosting: Which One Is Right for Your Small Business?      

April 24, 2024

The choice between shared and virtual private server hosting depends on various factors, including your business’s needs, budget, and technical requirements. Here’s a comparison to help you decide.


Shared hosting is generally cheaper than hosting on a virtual server because resources are shared among multiple users on the same server. A VPS, on the other hand, offers dedicated resources and is therefore more expensive.

In 2024, the average cost of shared hosting is around $1-15/month. The average VPS hosting price is $10 for an annual or multiyear plan. If you’d rather pay monthly, expect to pay $20 or more. The exact price depends on the resources required, the provider, and the duration of the subscription. 

If cost is a big concern, you could start out with shared hosting and switch to VPS when traffic to your site increases and you outgrow the shared plan. 


VPS allows for more effortless scalability because you can upgrade your resources (CPU, RAM, storage) as your business grows. Shared hosting is limited in terms of scalability as you’re sharing resources with other users on the same server.


Virtual servers typically perform better than shared hosting since you have dedicated resources such as CPU, RAM, and disk space. This means your site will load more quickly and handle higher traffic volumes more efficiently.


In shared hosting, security may be a concern since you’re sharing the server with other users. A VPS offers better security since resources are isolated, reducing the risk of security breaches.

Technical Expertise

Shared hosting is suitable for novices or those who don’t have much technical expertise, as the hosting provider handles server management. VPS requires more technical knowledge as you must manage and maintain your virtual server.


With shared hosting, you have limited control over server settings and configurations. The hosting provider manages them. With a VPS, you have more control and flexibility to customize server settings based on your specific requirements.

What Kind of Websites Benefit From Virtual Private Servers?

Websites that require more resources, customization, and control than shared hosting can provide should choose a VPS. Here are some websites that can benefit from this type of hosting.

E-commerce Websites

Online stores often require more resources and security features than basic websites. A VPS can provide the necessary performance and security measures to handle transactions and customer data securely.

Business Websites

Corporate websites or portals may require a VPS to ensure reliability, security, and customization options tailored to their needs.

High-Traffic Websites

Websites that experience a high volume of traffic can benefit from a VPS as it offers more resources and stability than shared hosting. This includes popular blogs, news websites, and forums.

Web Applications

Websites running complex web applications or software as a service (SaaS) platforms can benefit from a VPS to ensure consistent performance, scalability, and customization options.

Media-rich Websites

Websites that host and serve large media files, such as videos, images, or audio files, can benefit from the increased storage and bandwidth capabilities.

Development and Testing Environments

Developers often use virtual servers to create development and testing environments that closely resemble production servers. This makes it easier to test and debug applications before deployment.

Reseller Hosting

Individuals or companies offering hosting services to clients can utilize a VPS to create customized hosting packages with dedicated resources for each client.


Websites that prioritize security, such as financial institutions, government agencies, or websites handling sensitive data, can benefit from the enhanced security features and isolation.  

Gaming Servers

Multiplayer game servers often require low latency and dedicated resources. A VPS provides the level of control and performance needed to host game servers.

Final Thoughts 

For a small business with low to moderate traffic and budget constraints, shared hosting might be a suitable option initially. However, if you anticipate growth or require more control over your server environment, a VPS could be the better choice in the long run.