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Most small business websites, such as a brochure site for a trade, a café or a local service, run perfectly well on shared hosting. It’s cheaper, and the hosting company looks after the server for you. A VPS (virtual private server) is worth it when your site needs more power than a shared account can give, needs software a shared server won’t run, or when you have someone who can manage a server. If you’re not sure which you need, you almost certainly need shared hosting.
This guide explains what each one is, how they compare, and the honest signs that a business has outgrown shared hosting.
What is shared hosting?
With shared hosting, many customers’ accounts live on one powerful server. Each account has its own files, databases and email, kept apart from the others, and a fair share of the server’s processing power and memory.
The hosting company runs the server: updates, security, backups and the control panel. You log in to something like cPanel to manage your own website and email, but you never touch the server itself.
On good shared hosting, software such as CloudLinux sets a limit for each account, so a busy neighbour can’t slow your site down. Our guide on what resource limits are explains how that works.
What is a VPS?
A VPS is a slice of a physical server that behaves like a separate machine. It has its own operating system, a fixed amount of memory and processor, and full administrator (root) access.
That freedom is the point. You can install any software, change any setting and run any service. It also means someone has to look after it: security updates, firewall, backups, email configuration and fixing things when they break. Some companies sell a “managed” VPS where they do much of this for you, at a higher price.
Shared hosting vs VPS at a glance
| Shared hosting | VPS | |
|---|---|---|
| Who runs the server | The hosting company | You, or the host on a managed plan |
| Skills needed | Basic, through a control panel | Server administration, unless managed |
| Resources | A fair share, with per-account limits | A fixed amount reserved for you |
| Root access | No | Yes |
| Install any software | Only what the server supports | Yes |
| Security updates | Done for you | Your job, unless managed |
| Backups | Usually included | Depends on the plan |
| Typical cost | Low | Higher, and more again if managed |
| Best for | Most small business sites and email | Busy sites, custom apps, technical teams |
Which should you choose?
A brochure website for a local business
Shared hosting. A site with a few pages, a contact form and a gallery uses a tiny fraction of what a shared account offers. A VPS would cost more and add work.
A WordPress site with a blog or small shop
Shared hosting, ideally one tuned for WordPress with caching and tools for staging and updates. Most small WooCommerce shops run comfortably on it. See WordPress hosting.
A web designer hosting several clients
Shared hosting with room for multiple sites usually works well, and you avoid becoming responsible for a server. Move to a VPS if your clients’ sites grow, or if you need more control over the setup.
A busy online shop or membership site
This is where a VPS starts to make sense. If you regularly hit your account’s limits even after caching and tidying plugins, a VPS gives you resources that aren’t shared.
A custom application that needs particular software
If your app needs a specific database server, a background service that runs all the time, or software you install at server level, shared hosting may not allow it. A VPS will.
You have no one technical on hand
Stay on shared hosting, or choose a fully managed VPS. An unmanaged server that nobody updates is a security risk.
Signs you’ve outgrown shared hosting
Be honest about these, because a VPS won’t fix a slow site that’s slow for other reasons.
- You keep hitting resource limits after you’ve added caching, removed heavy plugins and blocked bad bots. Check Resource Usage in cPanel to see.
- Traffic is consistently high, not just a busy day after a newsletter.
- You need root access or software the shared server doesn’t offer.
- You need a dedicated IP address or custom server settings for a particular integration.
If none of these apply, the fix is usually in the site itself. Our guide on how to make WordPress faster is a good place to start.
What a VPS costs beyond the monthly price
The headline price of a VPS is only part of it. Budget for:
- Time or help to install updates, watch for problems and restore from backups.
- A control panel licence if you want one. cPanel and Plesk are both licensed separately for a server.
- Backups, which aren’t always included.
- Email setup, which takes care to get right so messages don’t land in spam.
For many small businesses, that extra time costs more than the hosting.
Common questions
Is a VPS faster than shared hosting?
Not automatically. A well-run shared account on a modern server can be quicker than a small, poorly configured VPS. A VPS is faster when your site needs more resources than a shared account allows.
Is a VPS more secure?
It’s more isolated, but only as secure as its upkeep. On shared hosting, the provider handles server security. On an unmanaged VPS, that’s your responsibility.
Can I move from shared hosting to a VPS later?
Yes. A website can be copied from a shared account to a VPS, and cPanel accounts in particular move between servers easily. Starting on shared hosting doesn’t lock you in.
Do I need a VPS for email?
No. Email on shared hosting works well for small businesses. Running your own mail server on a VPS is one of the harder jobs to get right.
Where WebHostGB fits
We sell shared hosting only. Our cPanel plans give each account 2 CPU cores and 4 GB of memory, with CloudLinux keeping accounts apart, backups every six hours and free SSL. That suits most small business websites and email. If your site truly needs a VPS, we’ll tell you honestly rather than sell you a bigger plan that won’t help. See web hosting for the plans, from £2.99 a month.