Shared Hosting vs. Dedicated Hosting: Key Differences

2024 SEO statistics state that 43% of small business owners consider investing in website performance. Finding reliable web hosting is a key factor in achieving this goal. 

Web hosting lets you securely store website data to publish your website online. Different web hosting options are available in the market, but two of the most common ones are shared hosting and dedicated hosting. 

To help you make an informed decision about which one is best for your website, we’ll break down each one’s strengths and weaknesses in this guide. 

What is shared hosting? 

Shared hosting works by hosting multiple websites on the same server. Think of it as a public bus system where you share the same vehicle with other commuters. In shared hosting, the bus represents the server you share with other website owners. 

Since thousands of websites are sharing a single server, this creates both advantages and disadvantages. 

Benefits of shared hosting 

Affordability 

A huge factor encouraging the use of shared hosting is its low cost. As of April 2024, typical shared hosting services cost between $2.51 to $4.62 per month. 

This is because server maintenance costs can be distributed among its many users. Since individual costs are driven down, you can allot your money for upgrades. This makes it easy to scale your hosting plan according to traffic and resource requirements. 

Ease of use 

Because of how user-friendly it is, many people first launch their websites with shared hosting. For instance, shared hosting plans come with a control panel for easy website management. 

Additionally, hosting providers carry out server maintenance for you. They’ll oversee the server updates, security patches, and performance monitoring. With shared hosting, your focus will be on developing and growing your business. 

Eco-friendly 

Shared hosting is the perfect fit if your brand prioritizes carbon footprint minimization. That’s because this type of hosting only needs fewer physical servers for infrastructure maintenance. This results in lower overall energy consumption and less greenhouse gas released into the atmosphere. 

Limitations of shared hosting 

Shared resources 

With shared hosting, you’re splitting the server’s resources with other websites. These include CPU power, memory, and bandwidth. 

This can pose a problem if your website suddenly gets a lot of traffic. Since the server is already supporting multiple sites, a big traffic spike could slow down or crash your site. Moreover, if one site uses too many of the resources, it negatively impacts your website’s performance. 

Less control 

In shared hosting, customization is limited. Users cannot install custom software or make major operation changes to the server. This is a plus for those who prefer not to manage technical aspects. However, it can be frustrating for those who want full control over their website.  

Security risks 

Since you’re sharing a server with other websites, the actions of your “neighbors” can affect your site as well. 

For example, if another website gets hacked, it could also impact your site’s security. Another instance is that your server IP address could get blacklisted if someone on the same server is sending out spam. 

What is dedicated hosting? 

Dedicated hosting provides your website with a dedicated server specifically for your needs. 

This kind of hosting is like owning a private car. You have more control over where you take your car and how fast it goes. Similar to that, dedicated hosting allows you to use your server resources as much as you want. 

Like shared hosting, dedicated hosting also has certain benefits and drawbacks. 

Benefits of dedicated hosting 

Exclusive resources 

You get an entire server all to yourself with dedicated hosting. This means you’ll have dedicated resources like disk space, processing power, and memory. During high-traffic periods, you can expect consistent fast loading times and a stable hosting environment. You also won’t have to worry about other sites slowing down your server’s performance.  

Increased security 

Dedicated hosting environments offer better security for your website. Since you’re not sharing the server with others, you minimize cyber threats that can affect your site. Additionally, installing your own safety software for maximum security is a viable option. 

Customization options 

A dedicated server provides extensive customization. You can install any software you need and personalize your operating system, which will help you meet the specific website requirements for your business. 

Limitations of dedicated hosting 

Higher cost 

It comes as no surprise that greater resources and control come at a greater cost. In 2024, prices of dedicated servers usually start at $100 per month. That will depend on how involved the hosting provider is with maintenance. 

The benefits might justify the cost for high-traffic websites. However, it’s important to ensure that dedicated hosting fits within your budget. 

Technical expertise 

Another limitation of dedicated hosting is that it requires a high level of technical knowledge. You’ll need to handle things like server configurations and security settings. 

You may need to hire a team if you need more technical expertise. You can also choose a managed dedicated hosting plan. However, these added services will add to the cost. 

Maintenance tasks 

Since you control the entire server, you’ll be responsible for maintaining it. This includes updates, monitoring, and troubleshooting issues that may arise. For some businesses, this level of management can be time-consuming and expensive. 

When is shared and dedicated hosting recommended? 

Shared hosting 

We recommend shared hosting for beginners. It’s perfect for small businesses, personal blogs, or anyone with limited technical knowledge. This is because it’s simple and cost-effective. 

For example, small-scale WordPress sites only require a basic and low-cost solution. These sites usually receive lower website traffic, so they can be handled without advanced features. Many small WordPress sites also don’t require expensive resources. Shared hosting provides sufficient storage and inexpensive bandwidth. 

Additionally, as your website grows, you can seamlessly upgrade to a more powerful hosting solution. Some providers, like Domain.com, offer this flexibility in their hosting plans. You can start small without over-committing to resources you don’t need yet. Meanwhile, you still have room to expand later if your site’s traffic increases. 

Dedicated hosting 

Dedicated hosting is best for websites with highly specialized needs. These could include sites that are security sensitive, receive high traffic, and use complex applications. 

Dedicated hosting is often chosen by healthcare and finance industries. This is because this hosting service protects sensitive information on websites. You can implement custom security measures like advanced firewalls and regular security audits. 

With dedicated hosting, your site is able to handle heavy traffic without slowing down or crashing. For example, eCommerce pages during holiday sales need extra bandwidth for smooth performance. 

Lastly, websites that run complex applications also benefit from dedicated hosting. These could be businesses running large-scale web apps or gaming servers. These require specialized software that needs advanced customization. 

Choose the best web hosting service for your website at Domain.com 

Choosing a web hosting provider means evaluating the options that fit your needs and budget. If you don’t need immense bandwidth, memory, or control, shared hosting is for you. However, pick dedicated web hosting if your website requires extensive server resources. 

Domain.com offers web hosting plans that are packed with standout features. A basic plan will give you a free domain for the first year and 10GB of web storage, too. Additionally, if you buy a premium plan, you’ll get unlimited bandwidth and an SSL certificate for your site. 

Choose your web hosting plan today and start your online journey with Domain.com! 

Frequently asked questions (FAQs)