Starting an online business is equal parts exciting and exhausting!

But hey! When you look at the opportunities the online world has to offer, and the possibilities that come with it, it all starts becoming easier. The trick is to break every task you need to do, to get your business online, into small steps and tick each one off before you jump to the next one.

So, assuming you have identified the right industry, your target audience, your business type and name — quickly buy and register your domain name to secure that for your online business. After all, your business’s virtual address and home.

But just like any house or shop you buy in the physical world, you’ll need additional resources to get it up and running — the same goes for your online business.

For an online business, these critical resources that ensure the smooth running of your business come in many shapes and forms, like, disk space, RAM, storage space, security features, etc. This further expands to the ‘furnishings’ you’ll need in the form of website design and development.

First thing first, let’s get the online business running with the right web hosting plan.

While there are many options in terms of types of hosting you can pick from, let’s stick to two popular options in this blog — Shared Hosting and Dedicated Hosting.

What is Shared Hosting?

As the name suggests, in Shared Hosting, multiple websites share the same server. A single server offers multiple resources, like storage, disk space, and RAM, which are then shared by all the websites on that server.

Think of it as an apartment within a building. All apartments, although have their individual space, share the same building resources, for example, water supply, elevators etc.

In the same way, in Shared Hosting you have your own space to run and do the business but the resources offered by the server are being used by all the websites on it. Again, to understand what that means for your business, think of the same example we used above. In an apartment, while you do have your security features, it may be compromised if your neighbours (other websites) are lax about their security. However, since you don’t buy/rent the whole building (server), the cost of upkeep gets divided between everyone and it becomes much more affordable for each.

Pros of shared hosting

The advantages of shared hosting are:

  1. Cost-effective: Shared hosting is usually the most affordable option, making it great for small businesses and personal websites.
  2. Ease of use: It’s user-friendly, even for beginners. Most providers offer easy-to-use control panels and one-click installations.
  3. Maintenance-free: The hosting provider takes care of server maintenance, updates, and security, so you don’t have to worry about technical details.
  4. Resource sharing: You share server resources with other users, which keeps costs low while still providing adequate performance for most websites.
  5. Scalability: Numerous shared hosting plans offer the flexibility to enhance your resources as your website expands, eliminating the need to transition to another hosting type.
  6. Customer support: Shared hosting providers often offer robust customer support to help you with any issues that arise.
  7. No technical skills needed: You don’t need to be a tech expert to use shared hosting. Providers handle the technical aspects, so you can focus on your website content.

Cons of shared hosting

The disadvantages of shared hosting are:

  • Limited resources: You’re sharing the server’s resources with other websites, which can slow down your site, especially during high traffic times.
  • Security risks: If another site on your server gets hacked, your site could be at risk too.
  • Performance issues: Heavy traffic on other sites can affect your site’s speed and performance.
  • Less control: You have limited ability to customize server settings and configurations.
  • Potential downtime: Shared servers can be more prone to downtime due to overloads or technical issues.
  • Scalability limits: As your site grows, you might need more resources than shared hosting can offer, requiring an upgrade.
  • SEO impact: Slow loading times and server issues can negatively impact your search engine rankings.
  • Email restrictions: There are often limits on the number of email accounts and the volume of emails you can send.

What is Dedicated Hosting? 

If Shared Hosting is an apartment within a building, Dedicated Hosting is your private bungalow; all the resources are dedicated to match and cater to your personal needs.

Dedicated Hosting is a popular hosting type that allows for exclusivity as the server is solely dedicated to a single customer/business. This means your security can’t be compromised by any other website, and you have complete control and freedom on how you want to use and manage your server resources.

Just like having your bungalow, with Dedicated Hosting you get more flexibility, higher security, better control and superior performance.

Now that we understand what Shared and Dedicated Hosting are, let’s understand the key differences between the two. This should help make a more informed decision when you want to buy or change your hosting type.

Pros of dedicated hosting plans

The advantages of dedicated hosting are:

  • Full resources: You get the entire server to yourself, ensuring maximum performance without sharing resources.
  • Enhanced security: With a dedicated server, you’re less vulnerable to security issues from other websites.
  • Better performance: Your website runs faster and more reliably since it’s not affected by other sites’ traffic.
  • Greater control: You have complete control over server configurations, allowing for full customization to suit your needs.
  • Scalability: Dedicated hosting can easily handle growth and increased traffic without compromising performance.
  • Improved SEO: Faster loading times and reliable performance can positively impact your search engine rankings.
  • Reliability: Dedicated servers typically offer higher uptime and stability, ensuring your site is always accessible.

Cons of dedicated hosting

The disadvantages of dedicated hosting are:

  • Higher costs: Dedicated hosting is more expensive than shared hosting due to exclusive use of the server.
  • Technical knowledge required: Managing a dedicated server often requires more technical expertise, which can be challenging if you’re not tech-savvy.
  • Maintenance responsibility: You’re responsible for maintaining and updating the server, which can be time-consuming and requires technical skills.
  • Setup time: Setting up a dedicated server can take longer compared to shared hosting, where everything is usually pre-configured.
  • Potential overkill: For smaller websites or those with low traffic, a dedicated server might offer more resources than needed, leading to unnecessary costs.
  • Hardware failures: If hardware issues arise, they can take longer to resolve compared to shared hosting, where backups and replacements are more readily available.
  • Complex upgrades: Upgrading hardware or software on a dedicated server can be more complex and costly compared to shared hosting plans that include automatic updates and upgrades.

ALSO READ- Shared Hosting vs. Dedicated Hosting: Which Option is Better for Your App Development Business?

SHARED HOSTING VS. DEDICATED HOSTING — KNOW THE DIFFERENCE

While the first difference between Shared hosting and Dedicated hosting can be derived from the names itself; in shared multiple websites share the same server and in dedicated a single server is used by a single website only — there are more differences between the two.  Let’s take a look at what these differences are:

COST 

Shared Hosting is available at a much more affordable price, as compared to Dedicated Hosting, for the simple reason that the server is being shared, and so are the resources; and as a result the cost. On the other hand, Dedicated Hosting is much more expensive since a single business/website will pay for the running of the entire server.

SECURITY

In a Dedicated Hosting environment security is much higher as there is no other website sharing the server. A website on Dedicated Hosting, thus, has greater control over the security features required and security threats due to other websites are negated. On the other hand, security risks in a Shared Hosting environment are more as multiple websites are sharing the server. Even if one of these websites gets exposed to a threat, all other websites on the server are at risk.

Scalability

Shared hosting offers limited scalability as resources are shared among multiple websites, making it challenging to accommodate significant traffic spikes or growth. Dedicated Hosting, on the other hand, provides high scalability with exclusive access to server resources. This allows for seamless expansion, accommodating increased traffic and resource demands without compromising performance. Dedicated hosting’s scalability makes it ideal for large websites or applications requiring robust and flexible hosting solutions.

Reliability

Shared hosting’s reliability can be variable due to resource sharing among multiple websites, leading to potential slowdowns during peak times or server issues affecting all sites. In contrast, dedicated hosting offers higher reliability by providing exclusive server resources. This ensures consistent performance and uptime, unaffected by other users’ activities. Dedicated hosting is thus more reliable for websites or applications needing stable and uninterrupted access, making it suitable for businesses requiring robust hosting solutions.

Technical Skill Requirements

Shared hosting requires minimal technical skills as server management and configurations are handled by the hosting provider. Users typically manage their websites through user-friendly interfaces like cPanel. In contrast, dedicated hosting demands higher technical expertise. Users must handle server setup, maintenance, security configurations, and software updates independently. This level of control requires proficiency in server administration and troubleshooting, making dedicated hosting more suitable for users with advanced technical knowledge or dedicated IT support.

RESOURCES 

As stated above, in Shared Hosting all the resources — data, CPU, memory, Disk space etc. — are shared by all the websites residing on the server. On the other hand, the entire server and its resources are dedicated to you in Dedicated Hosting. You don’t share resources with any other website.

MANAGEMENT

Management of Shared Hosting requires little to none technical expertise. You do not get any access to make customizations or configure any software and work with the existing and pre-set settings. However, in Dedicated Hosting you have access to make customizations to your server settings and also configure software or updates according to your own business needs.

WEBSITE PERFORMANCE

It all comes down to the same thing — shared Vs dedicated server space. In Shared Hosting, since you’re sharing the server space, chances are you may face some performance issues. Even if one website gets affected, all other websites may face downtime, lag, or even loading issues. On the other hand, website performance remains unaffected in dedicated hosting as the entire server and all its resources support just your website needs.

Conclusion: How to Choose the Right Hosting Option?

When deciding on your hosting option, it’s crucial to assess your website’s specific requirements and future growth potential. Shared hosting is economical for smaller websites with moderate traffic and minimal technical needs. On the other hand, dedicated hosting delivers superior performance and security, catering well to high-traffic websites and complex applications that demand dedicated resources. Consider factors such as scalability, reliability, technical expertise, and budgetary constraints to make an informed decision. With BigRock, you can easily set up your online business, including domain registration and hosting selection, ensuring a seamless start to your digital presence.

Explore more about shared, dedicated and cloud hosting in our Hosting Blog category and feel free to share your queries or feedback below.

 

FAQs – Shared hosting vs. dedicated hosting

Which type of hosting is better for high-traffic websites? 

Generally, dedicated hosting is better for high-traffic websites due to its exclusive use of server resources. Unlike shared hosting, where resources are distributed among multiple sites, dedicated hosting ensures consistent performance and can handle large volumes of traffic without slowdowns. This setup provides greater scalability, reliability, and customization options, making it ideal for websites with substantial traffic and resource demands that require stable and reliable hosting infrastructure.

Is it possible to shift from shared to dedicated hosting? 

Yes, it is possible to shift from shared to dedicated hosting. Many hosting providers offer migration services or tools to facilitate this transition.

Moving to dedicated hosting provides:

  • Exclusive access to server resources.
  • Offering better performance.
  • Scalability.
  • Control over server configurations.

However, it typically requires more technical knowledge and comes with higher costs. Evaluating your website’s needs and consulting with hosting providers can help determine if and when transitioning to dedicated hosting is beneficial.

 Is shared hosting secure? 

Shared hosting can be secure, but it depends on several factors. Since multiple websites share the same server, security risks can arise if one site on the server is compromised. However, reputable hosting providers implement strong security measures like firewalls, malware scanning, and regular updates to mitigate these risks. Users can also enhance security by using secure passwords, keeping software up to date, and implementing additional security features provided by the hosting provider.

Which performs better: Shared vs. dedicated hosting? 

Dedicated hosting typically performs better than shared hosting due to its exclusive use of server resources. Shared hosting can experience performance fluctuations during peak times when multiple websites compete for resources. In contrast, dedicated hosting provides consistent performance and higher reliability, making it suitable for high-traffic websites or applications that require robust performance and minimal downtime. However, dedicated hosting requires more investment and technical expertise compared to shared hosting, which is more beginner-friendly but may not offer the same level of performance under heavy loads.

What are the common use cases of shared hosting?

Shared hosting is suitable for small to medium-sized websites, blogs, and personal sites with moderate traffic levels. It’s ideal for individuals or businesses starting out online who prioritize cost-efficiency and ease of use over dedicated resources. Typical use cases include informational websites, small e-commerce stores, portfolio sites, and blogs that don’t require intensive resources or expect high traffic volumes. Shared hosting provides a budget-friendly option for hosting multiple websites on a single server, managed by the hosting provider.

What are the common use cases of dedicated hosting? 

Dedicated hosting is well-suited for high-traffic websites, large e-commerce stores, enterprise applications, and any site requiring robust performance, security, and customization options. It’s ideal for businesses or organizations that need exclusive access to server resources to handle significant traffic volumes without slowdowns. Dedicated hosting offers full control over server configurations, software installations, and security measures, making it suitable for mission-critical applications and sites where performance and reliability are paramount.