How To Choose Between Shared Hosting and VPS Hosting in 2024

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Are you finding it difficult to choose the right web hosting solution for your websites and applications? Your hosting choice will have an impact on your website’s performance, security, and, ultimately, the success of your online presence. But, with numerous options available, it can be a complex task to select the right hosting solution.

Among the popular hosting choices that often come up are shared hosting and virtual private server (VPS) hosting. Both have their own advantages and limitations. Understanding the differences and evaluating your specific requirements will help you make an informed decision. It will also ensure a seamless hosting experience for your online endeavors.

Whether you're a small business owner, an entrepreneur, or a developer, this article will serve as your ultimate guide to choosing between shared hosting and VPS hosting. We’ll provide comprehensive insights into the factors that matter most when it comes to choosing between shared hosting or VPS. This includes performance, security, scalability, cost, control, and customization. 

By exploring the advantages and limitations of both of these hosting options, as well as examining their unique features, you will be equipped with the knowledge necessary to make an informed decision for your website. Better yet, we’ll offer recommendations on reputable hosting providers and help you identify the circumstances in which one type of hosting may be more suitable for your specific requirements. 

Let’s get started!

Understanding Shared and Virtual Private Server (VPS) Hosting

An illustration showing the difference between shared hosting and VPS hosting.

To understand shared hosting, think of the server as a large apartment building; each website is like a tenant living in one of the apartments. Just like tenants share common facilities like the elevator and parking lot, websites on shared hosting plans share server resources.

Consequently, the cost of maintaining the server is divided among the multiple websites, making it cost-effective for individual website owners or small businesses who don't require extensive resources.

However, there are trade-offs. If one website consumes a lot of resources or experiences a surge in traffic, it can impact the performance of other websites on the server. This is similar to a neighbor throwing a loud party that disrupts other tenants' peace. Additionally, you have limited control over server-level decisions since your hosting provider is the one in charge of that, similar to having control over your apartment but not the building infrastructure. 

Nevertheless, despite these limitations, shared hosting is a popular choice for those with modest traffic and resource requirements, providing an affordable way to get a website up and running without extensive technical knowledge or maintenance responsibilities.

A virtual private server (VPS), on the other hand, is a kind of virtual computer that exists on a larger, more powerful computer, which we call a server.

A VPS is like having your own little space on that big server, providing you with a private environment that allows you to install your own operating system, software, and applications, just like you would on your personal computer. It is virtual, which means it's not a physical machine you can touch but behaves just like one. It has its own resources, such as memory, storage, and processing power, which are dedicated to your virtual computer.

Moreover, since you have dedicated resources for your VPS, you don't have to worry about other users on the server affecting your performance. A VPS is often a great option for businesses or individuals who need to host websites, run online applications, or even test software in a secure and isolated environment. It's a cost-effective solution that allows you to have your own virtual computer without the need to invest in expensive hardware.

Key Differences and Benefits Between VPS and Shared Hosting

While both VPS and shared servers have their advantages, they cater to different needs and priorities. Let’s explore the distinctive features of each hosting type in more detail to help you determine which one is the best fit for your specific requirements.

Let’s take a closer, in-depth look at this comparison.


VPS hosting offers better performance compared to shared hosting due to providing dedicated resources, ensuring consistent performance. Shared hosting, on the other hand, divides the server resources among multiple websites. This creates the noisy neighbor effect, where other websites sharing the same server can consume resources and impact your website’s performance negatively. 

As a result, VPS hosting generally offers faster load times, while shared hosting can be slower if other websites on the server consume resources. VPS hosting typically also has better uptime due to fewer websites sharing the server, while shared hosting may experience more downtime if any single website causes issues.


Website security is of utmost importance for protecting user data, maintaining trust, and preventing downtime. A security breach can compromise user information, resulting in financial loss, legal liabilities, and damage to a website's reputation. Additionally, downtime caused by security issues can negatively impact user experience and result in lost revenue.

Shared hosting poses potential security risks as multiple websites share the same server space, making it more vulnerable to attacks. You will also have limited control over security measures and will rely on the hosting provider for security updates. 

On the contrary, VPS hosting offers greater security through isolation compared to shared hosting, as each website operates in its own virtual environment. This isolation minimizes the risk of security breaches from other websites and gives you greater control over security configurations and the ability to implement custom security measures based on your specific needs.

Even better, Liquid Web’s VPS solutions provide advantageous security and compliance add-ons such as data, server, and web application protection against DDoS attacks and threat stack intrusion.


VPS hosting allows for easy resource upgrades as the website grows, providing scalability without the need to migrate to a new plan or provider. As your website attracts more traffic and demands additional resources, you can accommodate these needs by simply upgrading your existing VPS plan, such as increasing the allocated RAM or storage capacity. This scalability is advantageous for websites that anticipate growth or have fluctuating resource requirements.

Shared hosting, however, may require migration to a new plan or provider as the website's resource requirements increase.

Control and Customization

VPS hosting offers more control and customization options compared to shared hosting because you will typically have root access to your virtual server, allowing you to make advanced configurations and install custom software as needed. This level of control is beneficial for your website if you require specific software installations or have unique technical requirements.


Shared hosting is generally more affordable compared to VPS hosting. Shared hosting plans have lower costs due to the resources of the server being shared and having fewer features. 

As VPS hosting provides dedicated resources, greater performance capabilities, and additional features such as root access, it often comes at a higher cost. You'll therefore need to weigh up your specific resource requirements against your budget when deciding which hosting option is best suited to your needs.

Use Cases

Smaller websites with lower traffic and limited budgets will benefit from shared hosting. 

However, websites that anticipate growth, require better performance and security, and need customization options will find a VPS a more appropriate choice.

It is essential to consider the specific needs and requirements of your projects to make the best hosting choice. Factors such as expected traffic, resource demands, performance expectations, security considerations, and budget should be evaluated. It is also advisable to consult with hosting providers and seek their advice based on your specific requirements to ensure the most suitable hosting solution for your website.

When To Upgrade From Shared Hosting to a VPS

Shared hosting is a popular choice for many website owners due to its affordability and ease of use. However, as your website grows and evolves, there may come a point where shared hosting no longer meets your needs. In such cases, upgrading to a VPS hosting solution can provide numerous benefits. 

VPS hosting is particularly well-suited for websites with specific requirements, such as eCommerce websites, media-heavy websites, custom web applications, and websites that experience high-traffic spikes. These types of websites often demand more server resources, security measures, and customization options than what shared hosting can offer.

Several factors can indicate that it's time to upgrade to a VPS, including:

  • Increased traffic – If your website experiences increased traffic and resource usage that causes performance issues or slows down page loading times, a VPS can provide the necessary resources to handle the influx of visitors more efficiently.
  • Security issues – Shared hosting puts your website at risk of the security vulnerabilities of other websites sharing the same server. Moving to a VPS offers a more isolated and secure hosting environment, allowing you to implement robust security measures and protect your sensitive data.
  • Having more control – Shared hosting often has limitations on what you can install and configure on the server, while a VPS grants you root access and the freedom to customize the server environment to suit your specific needs.
  • Expanding and scaling – If you have plans to expand your website or add new features in the near future, a VPS can provide the scalability and flexibility required to accommodate growth. Unlike shared hosting, where multiple users share resources, a VPS ensures dedicated resources are available to handle your website's increasing demands.

To ensure a smooth transition from shared hosting to a VPS, it's important to research reputable VPS hosting providers and choose a plan that aligns with your requirements.

Make sure that you plan for potential downtime during the migration process and communicate this with your users in advance. It's also crucial to have proper data backups in place to avoid any data loss during the transition.

Choosing the Right Hosting Provider

It's vital to consider your specific needs and requirements when choosing your hosting provider. There are various options available, each with its own set of features and benefits. Read on as we introduce you to some of the top hosting providers in 2024. (The prices listed below are accurate as of the publication of this article.)


First up, here are a few notable shared hosting providers if you’re an individual or a small business looking to establish a cost-effective online presence.


Bluehost is a well-known shared hosting provider that offers affordable hosting plans. They provide a range of features, including free domain registration, SSL certificates, and website builders. With 24/7 support and a 30-day money-back guarantee, Bluehost is a reliable option for beginners.

Bluehost is recommended by WordPress and even offers specialized WordPress hosting and WooCommerce hosting, making this hosting provider a great option if WordPress is your preferred CMS.

Bluehost’s pricing plans start at $2.95/ month for 10 GB SSD Storage, free CDN (content delivery network), and a free domain and SSL for the first year.


Siteground’s webpage.

SiteGround is another highly-rated shared hosting provider known for its speed and reliability. They offer free SSL certificates, daily backups, and a website builder. Plus, they have 24/7 support and provide a 30-day money-back guarantee.

They are also recommended by WordPress and support WooCommerce, and their pricing starts at $3.99/month.

A2 Hosting

A2 Hosting’s webpage.

A2 Hosting offers shared hosting plans with unlimited storage and bandwidth, free SSL certificates, and a website builder. Just like the previous two options, A2 Hosting provides 24/7 support and an anytime money-back guarantee.

Their shared hosting plans start at $2.99/month for 12 months and offer 10 GB SSD storage and free site migration. 


As we’ve seen, a shared hosting provider isn’t the right fit for all site owners. And a VPS will likely be more suitable for websites with higher traffic and resource demands. 

Let’s take a look at a handful of the top VPS hosting providers worth considering.

Liquid Web

Liquid Web’s VPS hosting landing page.

Liquid Web stands out as a leading choice for VPS hosting, offering a plethora of valuable features such as:

  • Secure and compliant hosting solutions and customizable VPS plans.
  • Cutting-edge virtualization technology and powerful hardware, ensuring high performance and speed for your website or application.
  • Easily scalable resources for growing needs or sudden spikes in traffic.
  • A remarkable 99.999% uptime and fast loading times, ensuring reliable performance for your website.
  • Robust infrastructure with multiple data centers and redundant network connections.
  • Root access and full control over your virtual server.
  • 24/7/365 human support via phone, live chat, or email.
  • Free migrations for new server orders and global data centers to enhance accessibility and performance. 
  • Industry-leading customer loyalty score (NPS score of 67).
  • Managed VPS hosting advisors who are available for expert guidance.

Their VPS hosting plans start at $25/month for 24 months, including 2 GB RAM, 2 vCPU cores, 40 GB SSD Storage, 10 TB Bandwidth, AlmaLinux or CentOS 7 operating systems, InterWorx, Plesk, or cPanel web hosting panels, and 100GB Acronis cyber backups.


DigitalOcean’s webpage.

DigitalOcean is a popular VPS provider known for its cloud-based hosting solutions. In particular, they provide VPS hosting with a user-friendly control panel, flexible pricing options, and various features like backups, load balancers, and firewalls. Additionally, they offer flexibility and efficiency at an affordable starting price of $5 per month.

Unfortunately, DigitalOcean offers a more limited range of services compared to larger providers like Liquid Web because it has a smaller ecosystem, potentially requiring more manual configuration and setup due to the limited availability of integrations and third-party tools. 


Vultr’s webpage.

Vultr is another notable VPS provider offering fast and reliable hosting services. Some features they offer include high-performance SSD storage, 100% Intel CPUs, and global data center locations. Their VPS plans can be customized to suit specific user requirements, and they offer competitive pricing starting at just $2.50 per month.

However, Vultr's use of ticketing and forums rather than phones limits their customer support. Also, if you are a beginner, their setup process might be complex for you. Lastly, their global footprint is limited compared to other providers like Liquid Web.

By keeping website traffic, security needs, control and customization requirements, and budget constraints in your consideration, you can confidently choose the right hosting provider and plan that’ll suit you best. Whatever your needs are, Liquid Web will provide you with a surefire VPS solution with dedicated CPU and RAM resources that’ll bolster your website’s performance even during peak traffic periods.

Choose the Best Hosting for Your Business

It’s important to consider the unique needs and goals of your website when choosing between shared hosting and VPS hosting. While shared hosting offers affordability and simplicity, making it suitable for small websites with low traffic, a VPS provides dedicated resources, flexibility, and scalability. This makes VPS ideal for resource-intensive websites that require more control and customization. 

Liquid Web's VPS solutions are the leading choices, offering dedicated resources, full-root access, and the flexibility of cloud hosting, ensuring optimal performance and scalability for your website. You can rely on their fully managed service and expert support team to handle technical aspects and provide assistance whenever needed.
Don't settle for anything less than the best.

Choose Liquid Web's VPS hosting and take your website to new heights.