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Shared vs Dedicated
Business Web Hosting for Small Businesses - A Tutorial
 

 
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Small businesses can purchase either shared web hosting services or dedicated web hosting services.   In a shared hosting environment, a small business website will share resources with other websites which are hosted on the same server.  These computer resources include computer disk space, bandwidth and CPU cycles.  In a dedicated environment, your business website will have a dedicated machine and won't have to share resources with other websites.  This provides greater flexibility and dependability but it requires that you assume more responsibility.

There are advantages and disadvantages to both shared web hosting and dedicated web hosting for small businesses.  These are summarized in the table below:

Consideration Dedicated Hosting Shared Hosting
Costs more expensive less expensive
Data storage good for large data volumes depends on the plan you buy
CPU usage your site gets 100% of CPU other sites can impact your site
Bandwidth 100% of amount purchased other sites can impact your site
Security more secure if properly set-up can be somewhat less secure
Maintenance responsibility is shared maintenance is done centrally
Complexity more complex to set-up environment is already set-up
Backup/Recovery you decide; you implement scheduled backups
Flexibility environment can be tailored pre-defined environment

In general, shared hosting plans are adequate for the needs of most small businesses.  A business can always upgrade to a dedicated server should significant problems be encountered in a shared environment.

A third option called "Virtual Private Hosting" or VPS has recently emerged and is becoming quite popular.  It is a hybrid solution that provides advantages from the two option previously discussed.

 

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