Online Venture Decisions: Shared, VPS or Dedicated Hosting

Choosing the Right Hosting For an Online Venture

The right hosting option is important for the website of your online venture because it can affect numerous factors such as security and loading speed. Some of the most popular hosting services out there are shared hosting, virtual private server (VPS), and dedicated hosting. Here is an examination of their strengths and weaknesses as hosting options for online businesses.

Shared Hosting

You can pay a monthly fee to have your website stored and run out of a hosting service provider’s server. Your website will be sharing space and resources with the other websites stored on the server, meaning that an upsurge in demand can cause it to slow during loading. Furthermore, the shared nature of the server setup means you share an IP address with other websites on the server, and potential problems such as malware can cross over from one website to another. Shared hosting also permits minimal customization for your website.

Shared hosting is not suitable if you are planning to run a business from your website, both because it is not secure and because it can be quite slow. As a result, you run the risk of alienating potential customers through slow loading speeds and badly alienating them if they ever pick up malware or their information is ever leaked to outsiders.


VPS divides a shared server into compartmentalized portions, each with its own software and dedicated computing resources. As a result, you can customize the software on your virtual machine but not the hardware of the server. Furthermore, your purchased computing resources are dedicated to your website, meaning that an upsurge of demand elsewhere cannot affect its loading speed. Your website is also protected from intra-server contamination, while you receive the benefits of administration by the service provider.

Although more expensive than shared hosting, VPS is also better protected and less likely to go down. As a result, it is much more suited to hosting commercial websites and affords more options to better attract customers. However, VPS computing resources are limited, meaning that particularly large businesses might find their websites slowing down when hosted on VPS.

Dedicated Hosting

Using dedicated hosting means purchasing the server and then setting up the server to host your website. It is by far the most expensive hosting service among those listed here, requiring not only an initial outlay to cover both the cost of the server plus any miscellaneous expenses to get it up and running, but also monthly expenses to keep it running. Examples of monthly expenses include the salary that must be paid to the server administrator and the costs of upgrading the equipment as needed. In return for these costs, you can customize both the software and the hardware of the server to suit your website’s needs.

Dedicated hosting is ideal for larger online ventures that need to remain secure and operational as much as possible. You should not use it unless your business is big enough to both be able to afford the cost, and you need that much computing power for your website.


You should not choose a hosting service for your website until you have a clear understanding of the website’s purpose, its content, and its resource needs. Simply put, you cannot determine the right hosting service for your online venture until you understand the nature of both that venture and its website.

David Kendall

David Kendall is a freelance tech writer and SEO enthusiast who enjoys sharing various marketing blog & understands SEO best practices Who Is Hosting This the review service which focuses on performance of different webhosts.

5 thoughts on “Online Venture Decisions: Shared, VPS or Dedicated Hosting

    1. Ravi, Welcome to the blog. You are right, Majority of the beginners choose shared hosting & should be fine for the limited readers and the type of business.

  1. Truly said Lokesh, advanced users or techies, business owners mostly people who are doing e-commerce go for VPS. Even the newbies can also opt for VPS if they have enough technical expertise. The question remains is of cost. How much you are going to invest in your project? If you don’t have enough capital you can go for shared hosting with some plus features. Most of the shared hosting providers give e-commerce facility for some higher range packages.
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