Shared Hosting vs Dedicated Hosting: Which One to Choose

It is an impossible task to choose from a plethora of web hosting solutions as per our requirements and pricing options. Shared Hosting vs Dedicated Hosting is the dilemma every business faces one or the other day. One wrong decision can badly affect your business in the long run. So, make an informed decision to choose between shared hosting vs dedicated hosting after considering all the packages. Check all the features and choose the one which suits your needs and is best for your business. 

Let’s go through the intricacies of shared hosting vs dedicated hosting and which one to choose.


Shared hosting uses a common single server for multiple websites to run their businesses. It is one of the most sought-after hosting packages because of cost-effectiveness. Try to analyze with the example of a rented apartment where you are using all amenities of the society such as parking, playground, swimming pool etc. with every neighbor. This is nothing but shared hosting where amenities would be Disk space, RAM, CPU, and Operating system.

In dedicated hosting you don’t share your resources. You own everything from disk space to RAM to CPU usage. Every feature of the dedicated hosting is only for you. It is similar to owning your own house with no sharing of amenities.

Get to utilize all your resources for your own website only. This allows you to have the flexibility and power to configure your server, install software as per your needs, and completely manage the resources of your website yourself.

Dedicated hosting gives you administrative control of your server where you can customize everything.

What is Shared Hosting?

As the name suggests, sharing of a physical server and all its resources such as CPU, memory usage, hard disk space and bandwidth with other users is known as shared hosting.

Each user has his own isolated virtual environment managed and controlled by the hosting provider. It also has limited options to customize according to your needs. The only good factor about shared hosting is that it is cost effective.

What are the advantages of shared hosting?

  • Commonly used by small businesses because it is cost effective.
  • Best suited for websites experiencing low traffic.
  • Limited resources can be efficiently used by smaller websites through sharing.
  • Unlimited disk space to ease further expansion of business.

What are the disadvantages of shared hosting?

  • The greatest disadvantage is limitation of sharing resources.
  • Restriction on usage of resources as multiple sites are running on the same server. Thus, it affects the overall speed of your business.
  • A peak in traffic will slow down your site and also affect the uptime.
  • Difficulty to run security updates on each website as multiple users are sharing the same disk space.
  • Server customization according to your needs is not possible at all. If done, it may also affect other sites in a completely different manner. Hence, shared hosting providers don’t allow customization.
  • You can only use the standard configuration option in shared hosting.

Dedicated Web Hosting

Dedicated hosting is all about using your own resources according to your requirements with greater control and management. You have unlimited resources without being shared with anyone else. There are a plethora of services and software to select from.

Choose a dedicated hosting depending on the type of business you are running. It is best in the following situations.

  • If you have a growing business with frequent product additions, then you need customization. So, you get complete control of your server to adapt to your growing needs.
  • Your website offers video streaming and high-quality photographs.
  • You want a separate and unique IP address for your business. 
  • Your business requires high level security features to tackle sensitive transactions. 

What are the advantages of dedicated hosting?

  • Dedicated hosting provides a higher uptime even when your site has heavy traffic. 
  • 100% processing power as the resources are not shared. This improves Google rankings due to increased performance.
  • Dedicated hosting gives you root access to your server.
  • Your server is completely secure with improved flexibility and control. 
  • Increased reliability as you have root access and command in your hands.
  • Dedicated servers ensures security of your website.

What are the disadvantages of dedicated hosting?

  • Price is comparatively higher than shared hosting. 

Shared Hosting vs Dedicated Hosting: Various Business Scenarios

Planning for long term business expansion? The very first thing is to analyse your requirements in the coming years. Let us analyse various business scenarios and which is a better option for them.

Small Websites

If you have a small website with only a few visitors every month, you should go for shared hosting. For low traffic with limited loyal customers there is no need to go for dedicated hosting. You won’t need root access to customize your website. But, if you see any sharp increase in the number of users in the near future you can opt for a dedicated hosting solution.

Large e-Commerce business

Downtime is equivalent to less profit. Thus, loading time must be lightning fast along with quality customer support. Hence, higher uptime, reliable server and security are crucial for running your business. Dynamic content is also a must in e-commerce business. Therefore, customization happens on a regular basis.

So, dedicated hosting is the only solution offering a stable and highly custom platform for your online business. 

Hosting SaaS software

For a growing business providing subscription based software to multiple users, a high uptime is a must. Also, the resources have to be analyzed regularly if they need to be scaled up or not.

There must be an option of platform customization too. Go for a completely secure option for data security, like PCI DSS 2.0. The best option is to use dedicated hosting in this case.

Hospitals storing Health Data

Hospitals needs to store, transmit and acquire medical data of patients regularly. As the data is very personal, it needs to be 100% secured too. It also needs to be HIPAA compliant.

Therefore, in this case choose a dedicated hosting solution. 

Gaming Service and Video Streaming

Performance and bandwidth are critical in this business with a high traffic rate up to 10 Gbps. Even a time lag of a millisecond will make your customer unsatisfied with your service. Your sales and reputation will get overblown by poor quality streaming, time lag and slower response. Therefore, choosing a dedicated hosting solution is a must to compete with other similar businesses.

Purchase Dedicated Hosting from Eltris to get complete peace of mind regarding your business. You get highly secure, scalable and reliable dedicated servers from Eltris.

Conclusion: Shared Hosting vs Dedicated Hosting

Choosing a correct package with the optimal speed, reliability and performance is crucial for your business. In our comparison of shared vs dedicated hosting, we found that shared hosting is a less expensive option for smaller websites with only a few hundred visitors every month.

Dedicated hosting offers flexibility, power and reliability to your business. Therefore, it is best for those having mid to large businesses with more than thousand visitors a month. Get in touch with dedicated hosting experts today and take your business to new heights.