What it is
Shared Hosting involves hosting multiple websites on a single OS instance with shared libraries and web server software. A VPS (Virtual Private Server) is a virtual machine created via hypervisor virtualization (KVM, VMware), featuring its own OS and dedicated resources.
| Parameter | Shared Hosting | VPS |
|---|---|---|
| Isolation | Filesystem permission level | Kernel level (L3/L2) |
| Access | Control Panel (cPanel/ISP) | Root/SSH access |
| IP Address | Shared | Dedicated |
| CPU/RAM Resources | Dynamic, no guarantees | Reserved (vCPU/RAM) |
| Software Install | Provider-defined list only | Any OS-compatible software |
Performance
On Shared Hosting, performance is affected by the "Noisy Neighbor" effect. If one site consumes 90% of CPU resources, others experience latency. While CloudLinux limits peaks, it does not guarantee stable IOPS. KVM-based VPS provides fixed CPU cycles and RAM. sysbench tests demonstrate stable latency on VPS even under high physical node load.
Configuration & complexity
Shared Hosting is managed via GUI. Users cannot modify php.ini globally or upgrade Nginx versions. On a VPS, the administrator has full control. Configuring limits in /etc/security/limits.conf or kernel tuning via sysctl.conf is only possible on a VPS, requiring Linux system administration skills.
When to choose what
- Shared Hosting: Landing pages, business card sites using CMS (WordPress, Joomla), small forums with up to 500-1000 daily visitors.
- VPS: High-traffic e-commerce, Bitrix projects, Docker containers, VPN servers, PostgreSQL/Redis databases, specific stacks (Python/Django, Node.js, Go).
Cost / licensing
Shared Hosting ranges from $2 to $10 per month, with panel licenses usually included. VPS starts at $5. Using Windows Server on a VPS requires per-core licensing fees. On Shared Hosting, additional software costs are virtually non-existent.
Ecosystem & integrations
Shared Hosting is limited to standard FTP/SFTP and MySQL protocols. VPS allows building CI/CD pipelines via GitLab Runner or Jenkins, using Terraform for infrastructure management, and attaching external Block Storage for scaling the disk subsystem.
Verdict
Shared Hosting is suitable for quickly launching simple web projects without administration overhead. VPS is required for production environments where isolation, custom configurations, and guaranteed computing power are critical.