Shared hosting means sharing a server – and it’s resources – with other sites; that’s bandwidth, storage… the lot. VPS hosting creates a virtual environment that imitates a dedicated server (where you get a server, and all its resources, to yourself), but within a shared hosting environment.
Another way to get your head around the difference is to think of them like renting property:
With Shared hosting, you ‘share’ space on a server with other websites. It’s like renting a room in a shared house – you’ve got your own little area, but you’re part of a larger communal space.
Shared hosting is the cheapest type there is. It’s got its benefits, but naturally, things can get a little cramped at times.
VPS hosting is where you have more than just one slice of a server. This can be thought of like renting a flat in a building block – more rooms, more space, more flexibility, and a little more expensive. You have a greater level of control, but you’re still operating within a shared server with others.
Generally, Shared hosting is for static websites – in other words, websites with fixed content that doesn’t change, no matter who visits it. Shared hosting is best for basic personal sites, like blogs, and for startups. You don’t get a wealth of features, ironclad security, or ultra-fast loading speeds, but then again, you don’t really need all that.
VPS hosting is a step up, and ideal for small businesses, online stores, and larger personal sites. You’ll see an increase in features, security and performance, all for a very reasonable rise in cost.
VPS hosting is also great if you’re looking to grow your site. Think of it as an investment – you want to pick a plan that matches your ambitions, not just one for the here-and-now.