VPS Hosting vs Shared Hosting [Benefits, Disadvantages, Which One Fits Your Website, and More]

Shared hosting powers around 37.64% of websites globally, while about 13.60% of websites run on VPS servers.

But that doesn’t mean shared hosting is the automatic choice for your website.

The best option really depends on your site’s requirements and goals.

That’s why I’ve put together this complete guide on Shared Hosting vs VPS Hosting—not just with clear explanations, but also a deep dive into the differences, benefits, and real-world problems of each.

By the end, you’ll be fully prepared to make a smart decision between these two popular web hosting options.

vps vs shared hosting

Differences Between VPS vs Shared Hosting

Let’s start with the differences between Shared Hosting and VPS Hosting that users commonly experience in real-world scenarios.

FeatureShared HostingVPS Hosting
CostMore affordable (starts at just $2–$5/month)
Expensive (starts around $10–$30/month)
Ease of UseManaging shared hosting with cPanel is quite easy
Managing a VPS server is difficult unless it’s a managed one
PerformanceSlower, because server resources have to be shared with other sitesHigh and consistent, because you get dedicated resources
Server AccessLimitedComplete root access
ScalabilityLimited (you’ll need to upgrade your plan manually)Can be easily scaled and upgraded based on extra resource needs (RAM, CPU power, storage)
SecurityBasic (there’s a risk due to neighboring sites on the same shared server)
Highly secure because only you have access to your VPS server
SupportBasic and no priority supportVaries; more help with managed VPS, little with unmanaged
BackupsOften basic or manual unless paid add-onMay include automated backups (especially in managed VPS plans)
Server MaintenanceHandled by the web hostYou handle it (unless managed VPS)
Ideal use casesPersonal blogs, small business websites, basic portfoliosGrowing sites, eCommerce, SaaS apps, custom dev projects

What is VPS Hosting? [Simple Explanation]

vps hosting explanation by diagram

VPS Hosting stands for Virtual Private Server Hosting. It’s a web hosting type where a website gets its own dedicated portion of a physical server but with guaranteed resources like CPU, RAM, and storage.

Yes, it’s the perfect middle ground between shared hosting (cheap & poor performance) and dedicated hosting (powerful but expensive).

VPS Hosting Benefits

1.) Dedicated Resources: You are not sharing CPU or RAM with other sites. It helps in keeping your site fast and stable. Example: An online store stays fast even during Black Friday traffic.

2.) Better Performance: During traffic spikes, your site will load faster compared to a shared server.

3.) High-Level Security: VPS hosting offers an Isolated environment means others’ hacks don’t affect you.

4.) Full Control (Root Access): In many situations, you might need to tweak server settings or install a custom app. You can do all this with a VPS because you have full control.

5) Scalability: Sometimes, a situation (like a sudden traffic surge) demands more power than your current hosting plan offers. If you’re using VPS, you can easily add resources to your server and avoid any downtime.


VPS Hosting Disadvantages

1.) Higher Cost: More expensive than shared hosting (typically starts at $10–$30/month). A personal blog might not justify the upgrade from $3 shared hosting.

2.) Technical Knowledge Needed: Unless it’s managed, you’ll need to understand server management, updates, and security. A non-techie struggles to install SSL or troubleshoot downtime.

3.) Manual Maintenance: You’re responsible for backups, patches, and optimizations (again, unless it’s a managed plan).


Real-Life Use Cases for VPS Hosting

ScenarioWhy VPS Works Well
Growing eCommerce StoreBetter speed and security for customers
Freelancers and Web DevelopersHost multiple client sites with control
Startup launching a web appFlexible environment for custom code
SaaS platformsRun APIs
Bloggers with 100K+ traffic/monthStability and performance during spikes

My Recommended VPS Hosting Provider

Obviously, there are plenty of VPS Hosts out there. I even tested a lot of VPS hosting services by myself.

If I have to say one name, Hostinger is what I recommend to beginners. It is an affordable VPS host out there and perfect for those who are looking to get their hands on a VPS environment for the very first time.

Plus, if you’re interested, you can use the discount code BPVPS to get 15% off your VPS hosting plan.

Some key features of Hostinger VPS Hosting:

  • OS Templates: I really appreciate the variety of pre-configured OS templates. They make setting up my server super quick and easy. I can choose from popular operating systems like Ubuntu, CentOS, and Debian. This is especially helpful for someone like me who might not have extensive technical experience.
  • Kodee (AI Assistance): Hostinger’s AI-powered assistant, Kodee, has been a lifesaver for troubleshooting and resolving common server issues. Whether I’m dealing with configuration problems or just need a step-by-step guide to installing specific server software, Kodee helps me out in seconds.
  • Affordable Pricing: Hostinger pricing is transparent and affordable. They help you to launch a high-performance VPS without overspending. With flexible plans starting at just $4.99/month (for a 24-month term), it’s a cost-effective option for me as I look to grow my business efficiently.
  • Full Root Access and Customization: Even on unmanaged plans, They offer full root access so you’ll get complete control of the server environment.
  • 99.9% Uptime Guarantee: Hostinger guarantees 99.9% uptime which gives you peace of mind knowing that a site or application will stay online with minimal interruptions. Their excellent infrastructure and server reliability mean my business stays up and running smoothly.
  • Firewall and DDoS Protection: I feel secure knowing my virtual server is protected thanks to Wanguard DDoS filtering and an easy-to-configure firewall.

What is Shared Hosting?

shared hosting diagram explanation
Source: Hostinger

Have you seen a diagram above? Yes, you are sharing server resources with other sites. That’s a technology called shared hosting.

Shared Hosting is the most common and beginner-friendly type of web hosting. 

In this setup, multiple websites are hosted on a single physical server and they are sharing all the server resources (CPU power, memory, storage, and bandwidth.)

Advantages of Shared Hosting

– Low Cost: Perfect for beginners or side projects. Example: Launch a personal blog for $2.99/month.

– Beginner-Friendly Setup: Easy interfaces like cPanel and 1-click WordPress install. For example, If you are a student and have no coding knowledge then you can build your portfolio site in just 30 minutes with the help of WordPress CMS

– No Server Management Required: In Shared Hosting the hosting provider handles maintenance, updates, and security. This benefit is absent in VPS hosting.

– All-in-One Features Included: Often comes with free SSL, email accounts, and domain. Example: A freelancer gets hosting + email + domain for one low price.


Shared Hosting Limitation:

– Limited Resources: You share CPU, RAM, and storage with many others. Because of this, your site’s performance can suffer if another site is consuming too many resources at the same time.

– Performance Issues: Speed can drop during high traffic periods. Example: Your blog takes 8+ seconds to load when others are consuming bandwidth.

– Security Vulnerabilities: A hacked neighbor site could pose risks. Example: Malware on another site on the server puts your WordPress install at risk.

No Root Access or Customization: Unlike the VPS server, You can’t install non-standard software or change server-level settings in a shared environment.


Real-Life Use Cases for Shared Hosting

ScenerioWhy Shared Hosting Works Well
Personal blog or journalLow cost & simple setup
Student PortfolioQuick to build and host school projects
Local service businessBasic web presence with contact info
Affiliate website (beginner level)Test SEO/content ideas before scaling up

My Recommended Shared Hosting Provider

Hostinger is a name I would like to recommend as a top option for shared hosting for beginners. 

Their shared plans are the most popular in the entry level hosting market.

For just $2.69/month (Special Pricing), You’ll get a shared hosting plan that is optimized for WordPress. 

It comes packed with features like unlimited bandwidth, an unlimited SSL certificate, 100 GB SSD storage, and even a free domain name for a year. 


Final Words: VPS Hosting vs Shared Hosting:

Still unsure about Shared Hosting vs VPS Hosting?

Well, Let me form everything again so that you’ll make a wise choice.

Finalize Shared Hosting if:

  • If this is going to be your first blog or site (personal blog / small business site)
  • If site traffic is low to moderate (5k-10k per month)
  • Your budget is tight (under $5/month)
  • You have zero technical website management skills
  • You want to make your site in the minimal time possible

Finalize VPS Hosting if:

  • The website traffic is growing or crossing 10k monthly.
  • You run an eCommerce store, web app, or membership site.
  • You need better security with high performance always
  • You want server-level control or plan to install custom apps/scripts.
  • You have some technical knowledge or can afford a managed VPS.

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Avatar for Yash Jain
About Author
Meet Yash, our Senior Writer and Content Editor with 5+ overall experience. He has expertise in SEO blog writing, especially in niches like Web Hosting, SEO, and Blogging. He has been with us for over 3 years, and his main skills are SEO, content writing, and content editing.

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