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I'm frequently asked why someone would choose shared hosting over having their own VPS (Virtual Private Server) or Dedicated Server, and my answer is almost always the same...

What do you believe you require? And why is this so? And I almost always get the same responses.

We anticipate a large number of visitors, we will direct all of our customers to it, we require space for all of our product information, we do not want our business to be hosted on the same server as a number of other sites, and so on.

For some reason, many people and businesses are skeptical of shared hosting. Although some sites require dedicated hosting, the vast majority, approximately 75%, only require shared hosting. When I explain the benefits and drawbacks of shared hosting and then give them my opinion on their needs, most choose shared hosting.

What Are the Benefits of Shared Web Hosting?

1. Shared hosting is a low-cost option (ie: Cost Effective)

Let's face it: a good dedicated server will cost you or your company a lot of money, probably around $300 per month. When compared to shared hosting, which costs around $7 per month, that's a $3500 annual savings.

2. There are no maintenance costs (ie: Cost Efficient)

There are no maintenance costs with shared hosting because the web hosting provider performs all maintenance and upgrades on their servers at no cost to the end consumer, or you. As part of doing business, they absorb the costs of maintenance and upgrades.

3. Quick Setup

When you order shared hosting from a reputable web hosting provider, your account is typically set up within hours, if not minutes. If you order a dedicated server, you may have to wait 24 to 72 hours before it is ready and operational.

4. Excellent for new or small sites.

Because shared hosting is "shared," it is ideal for sites that are small, new, or do not require a lot of resources. This means that multiple sites are hosted on the same server and share its resources. This is fine for about 80% of all websites and is rarely a problem. When a site becomes extremely busy or requires additional resources, it is time to consider upgrading to a VPS or dedicated server solution.

What Are the Negative Aspects of Shared Hosting?

1. Resources are limited.

As previously stated, with shared hosting, multiple sites share the same server resources, potentially causing bottlenecks in information flow when multiple sites are resource intensive. Although bottlenecks like this are uncommon, they do occur on occasion. Good web hosts consistently monitor their servers for such bottlenecks and balance their servers to maintain an even flow.

2. Not Recommended for High-Resource Sites

If you plan to run a large forum or e-commerce site that requires a lot of database interaction, shared hosting may not be the best option for you due to resource limitations. It all depends on your site's requirements. If you know your site will require a lot of resources from the start, you should go with a VPS or dedicated server.

3. Dynamic Internet Protocol

While dedicated IPs are available for an additional monthly fee in shared hosting, the vast majority of shared hosting is done with dynamic IPs. In other words, all of the websites hosted on a shared server share the same IP address. If you know you'll need a dedicated IP address for SSL or another reason, you can easily add one to your shared hosting plan. However, keep in mind that there will be an additional cost.

4.Security

While some may consider this a disadvantage of shared hosting, depending on your perspective, it can also be an advantage. Security in the online world is an ever-changing environment that necessitates constant monitoring and software updates in order to stay one step ahead of those who enjoy hacking sites. The hosting provider will take care of locking down their server to the best of their ability with shared hosting.

Unfortunately, because there are so many different sites on one server, it only takes one script on someone else's website to potentially cause problems for all of the sites on the server. It is your responsibility to keep your website scripts up to date and backed up in a secure location.