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The Differences Between Shared and Dedicated Hosting

If you are interested in hosting services for your business's website, it is important to understand the different types of services that are available to you. Shared hosting and dedicated hosting are two of the most well-known, and since dedicated hosting is much more expensive, it helps to understand the differences between the two.

What is Shared Hosting?

Shared hosting occurs when multiple websites are hosted on a single server that is owned by a third-party company. Each of the websites on the server is allocated its own specific amount of power and resources, and since each domain shares the power and resources that the server consumes, the price for this sort of hosting is much less than others. However, it is important to note that shared hosting is often only a good idea for small to mid-size businesses that do not have more than a moderate amount of traffic or e-commerce. This type of hosting cannot provide enough resources to run a site that boasts high traffic or constant transactions.

What is Dedicated Hosting?

Dedicated hosting occurs when an entire server is dedicated to hosting the domain or domains of a single company. This frees up additional resources and ensures that even the highest-traffic websites have everything they need to function correctly. This is the best choice for larger businesses that boast a lot of e-commerce as well as those businesses that are expected to grow very quickly. Much like shared hosting, the third-party company actually owns the server and the facility in which it is housed. Dedicated hosting is more expensive because the resources afforded to the server are all going to one company rather than being shared by many.

Which is Best?

Both shared hosting and dedicated hosting are available from many companies in different types of plans. Overall, if your business is small and will likely stay that way for some time, then shared hosting is the least expensive choice that will work for your needs. However, if your business is large or growing rapidly, then dedicated hosting is likely the best choice—even though it is significantly more expensive. If you are unsure of what you need, you may also want to consider things such as VPS or colocation hosting. These alternatives to web hosting may open up additional doors for your business.

Shared hosting and dedicated hosting are both great choices, but business owners must carefully consider what they anticipate their website traffic to be like before they can really determine which option is the most economical.