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Hosting

7 minute read

Shared vs Cloud Hosting: What’s the Difference Between Shared and Cloud Hosting: and Which One Should You Choose?

If you are trying to figure out the difference between shared and cloud hosting, you are not alone. It’s something almost everyone looks into when they are about to launch their first website. 

Only when you fully understand how both these hosting options work can you make an informed decision that aligns with your needs, budget, and growth projections. 

In this piece, let’s explore what shared and cloud hosting mean, how they compare, and what you should think about before making your choice.


What is Shared Hosting?

Shared hosting is a type of hosting where multiple websites live on the same server and share its resources like CPU, memory, and storage. In simple terms: there’s one machine on the cloud somewhere that’s running dozens of sites, and your site is one of them. 

Still unclear? Here’s an easier way to picture it:

Putting your website on a shared hosting is like living in an apartment building. You have your own space, but you share things like water, electricity, and sometimes even Wi-Fi with your neighbors. If one neighbor uses too much, it can affect everyone else.

As you can imagine, this approach has its pros and cons.

Pros of Shared Hosting

  • Low cost: Shared hosting is usually the cheapest option available. This makes it perfect for small personal sites, blogs, or early-stage business websites that don’t have a lot of traffic yet.
  • No technical headaches: The web hosting company handles server maintenance, security patches, and updates. You don’t have to worry about the nuts and bolts of the server.
  • User-friendly: Most shared hosting plans come with easy-to-use control panels (e.g., cPanel or Plesk). This helps beginners set up email accounts, domains, and install popular apps like WordPress with just a few clicks.
  • Simple upgrade paths: Vendors typically offer clear and straightforward upgrade paths from basic shared hosting to a higher-tier shared plan, or even to a different hosting type like VPS or cloud hosting.

Cons of Shared Hosting

  • Performance depends on neighbors: Since you share the same server, your site’s speed can drop if another site on the server uses too many resources, or gets a sudden traffic spike.
  • Security risks: If one website on the server gets breached, there’s a chance it could affect others. Good hosts have measures in place, but the risk is still there.
  • Limited server access: You won’t have root access or advanced configuration options. This means you can’t customize any key server settings, which might be a deal-breaker for developers.
  • Not great for high-traffic sites: If your site starts getting thousands of visitors daily or needs more computing power, shared hosting will likely run into scalability problems.

What is Cloud Hosting?

Cloud hosting is a type of hosting where your website runs on a network of connected servers instead of just one physical machine. These servers work together to balance the load and keep things running optimally.

In simple terms: your site’s data is spread across multiple servers in different locations, so if one server has an issue, another one picks up the slack. 

Think of it this way:

Hosting your website on the cloud is like living in a whole neighborhood of connected houses. Each house is more independent and better equipped than an apartment (shared hosting). Additionally, If there’s an issue with one house, you can easily move to the next house in the neighborhood without losing access to what you need.

Again, there are both pros and cons to consider.

Pros of Cloud Hosting

  • Better performance and uptime: Your site can pull resources from multiple servers. If one server goes down or gets overloaded, another steps in. 
  • Handles traffic spikes easily: Cloud platforms can add more computing power during busy times and scale back when things are quiet. Great for sales, product launches, or seasonal traffic.
  • Pay-as-you-go pricing: You’re billed based on actual usage, which can be cost-effective if your traffic is unpredictable. (Just keep an eye on it; there’s another side to cloud hosting pricing that we have discussed in the cons below.)
  • More control: Many cloud hosting plans allow custom server configurations, SSH access, and app-level tuning.

Cons of Cloud Hosting

  • Higher cost (especially at scale): While cloud hosting starts cheap, costs can rise quickly if your usage grows and you don’t keep track of it.
  • Unpredictable bills: If you’re not careful with traffic limits or resource caps, you might get hit with a bigger bill than expected.
  • Some technical complexity: If you are a beginner, you can find it hard to manage cloud infrastructure on your own. Even if the host offers tools, you will likely still need to know a bit more than with shared hosting.
  • More responsibility: Depending on the provider, you might be responsible for backups, software updates, and security. (Although there are managed cloud hosting plans that take care of this for you, they can be even more costly.)

Shared Hosting vs Cloud Hosting – Key Differences

To help you get a quick overview of how shared and cloud hosting stack up, here’s a clear comparison table. 

AspectShared HostingCloud Hosting
CostUsually the cheapest option; fixed monthly or yearly feeTypically pay-as-you-go pricing; costs depend on usage and resources needed
PerformanceCan slow down if other sites on the same server get busyUses multiple servers, so there’s better load balancing and uptime
ScalabilityLimited. Upgrades require moving to a bigger shared plan or new hosting typeHighly scalable. Add or remove resources easily based on traffic
Technical Skill NeededBeginner-friendly as the provider manages almost everythingCan require more technical know-how, depending on the plan
Server ControlVery limited. No root access or deep customizationMore control over server settings and configurations
SecurityBasic security is provided, but risks can arise if a neighbouring site is compromisedStrong isolation between sites, so lower risk if one server fails or is attacked
Traffic HandlingBest for low to moderate traffic; can’t handle huge spikes wellGreat for sites with unpredictable or high traffic
Resource AllocationFixed resources shared with other sitesFlexible resources pulled from multiple servers
MaintenanceProvider handles updates and server careSome plans require you to manage parts of the setup
Best ForPersonal sites, blogs, small business websites with steady low trafficGrowing businesses, eCommerce, or sites with changing traffic needs

Which Hosting Option is Right for You?

By now, you know the main differences between shared and cloud hosting. To help you make the final call, here’s a quick checklist to see which one fits your needs best.

Go with shared hosting if:

  • You’re just starting out with a personal site, blog, or small business website
  • Your site has low or steady traffic
  • You want the most affordable option with simple monthly or yearly pricing
  • You don’t want to handle any server management or technical setup
  • You’re fine with basic security and performance, and you don’t expect huge traffic spikes

Go with cloud hosting if:

  • You run a growing business or expect your traffic to change often
  • Your site needs to handle sudden traffic surges without slowing down
  • You want better uptime and reliability, with resources spread across multiple servers
  • You’re comfortable paying for what you use (even if it means keeping an eye on usage)
  • You want more control over your server and configurations

Common Questions About Shared and Cloud Hosting

Finally, we’ll answer some frequently asked questions about shared and cloud hosting.

Is cloud hosting faster than shared hosting?

Generally, yes. Because cloud hosting pulls resources from multiple servers, it can handle high traffic and spikes better than a single shared server. This usually translates to better performance and uptime.

Can I start with shared hosting and upgrade later?

Yes. Most hosting providers make it easy to upgrade from shared hosting to a bigger plan or even move to cloud hosting when your traffic grows. It’s a common path for small sites that don’t want to spend too much upfront.

Is cloud hosting worth the extra cost?

Depends on your site’s needs. If you have steady low traffic and largely static content, shared hosting might be all you need. But if you expect unpredictable traffic, run an online store, or can’t afford downtime, the extra cost of cloud hosting often pays off in better speed, reliability, and flexibility.

Is cloud hosting secure?

Depends. Some cloud hosts manage most of the security for you, with things like firewalls, access control, automatic updates, and backups. Others give you more control, but that means you’re also responsible for keeping things locked down. Always check what your host handles and what you need to do yourself. 


Conclusion

Fully understanding the difference between shared and cloud hosting will help you pick the option that fits your site’s needs, budget, and future plans. There’s no one-size-fits-all answer; what matters is that you choose what works best for you right now, with room to grow later. Need help choosing the right hosting for your website? Explore our Shared Hosting Plans or get in touch with our support team.