Shared hosting vs dedicated hosting: what is the difference?

Shared hosting and dedicated hosting are at opposite ends of the web hosting spectrum. Shared hosting is the most affordable option, where your site shares a server with others. Dedicated hosting gives you an entire physical server to yourself, delivering maximum performance and control at much higher cost.

Disclosure: What's Hosting operates a GoDaddy reseller storefront. Competitor guides are editorial research, not products we sell.

With shared hosting, you share the server's CPU, RAM, and storage with dozens or hundreds of other websites. Resources are managed by the hosting provider. This makes it affordable (typically $3 to $15 per month) but means that a surge in traffic to another site can occasionally affect your site's speed.

With a dedicated server, you have all of the machine's resources to yourself. No other websites or applications compete for your CPU or RAM. This makes dedicated hosting ideal for high-traffic websites, large e-commerce platforms, and applications with strict security requirements.

The cost difference is significant. Shared hosting costs a few dollars per month. Dedicated servers typically start at $80 per month and go up to several hundred depending on the hardware specification. Most businesses do not need dedicated hosting until they are getting tens of thousands of visitors per day.

VPS hosting sits between shared and dedicated. It gives you dedicated resources on a shared physical server, delivering most of the performance benefits of dedicated hosting at a fraction of the cost. For the majority of businesses that have outgrown shared hosting, VPS is the practical next step rather than jumping straight to a dedicated server.

Common questions

Is dedicated hosting always better than shared hosting?

Dedicated hosting offers more power and isolation, but shared hosting is sufficient for most websites. You are paying for resources you may not need with a dedicated server. Start with shared hosting and upgrade when you actually outgrow it.

What are the alternatives between shared and dedicated?

VPS hosting and cloud hosting both sit between shared and dedicated. They offer dedicated resources and more control than shared hosting, at a significantly lower cost than a dedicated server.

How do I know if I need dedicated hosting?

If your site is getting hundreds of thousands of monthly visitors, you store highly sensitive data that cannot share infrastructure, or your application has performance requirements that VPS cannot meet, dedicated hosting is worth exploring.

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