Web hosting vs. VPS Hosting: What are the differences?

Before starting any web project, the question arises of how to host the internet offering. Especially with a tight budget, cost-effective solutions like shared web hosting or a VPS hosting are the best options. Both options have their individual advantages and disadvantages, which may vary depending on the project. Below, we outline the key differences between web space packages and VPS hosting and show which purposes they are well suited for.

What is Web Hosting?

Users who subscribe to a web hosting plan receive a defined storage space (web space) on a server. Multiple customers share the same system and use the hardware resources collectively. Only the storage space is allocated differently to them.

The individual user is denied access to the entire system. The web hosting provider takes care of server administration. This comes with the disadvantage that individual system configurations are not possible for customers. Only a few settings such as specifying the PHP version to use or the time zone are executable.

You can also find everything you need to know about web hosting in the comprehensive Web Hosting 101 Guide on our website.

The advantage, however, is that customers of web hosting services do not have to worry about updates, security patches, or backups for the server. This is taken care of by the web hosting provider.

The customer only manages their allocated storage space. Graphical controls set up by the provider make administration easier. Access to the web space is also possible via FTP or SSH.

Pros and Cons of Web Hosting at a Glance

Pros

• low costs
• no server knowledge required, maintenance and administration are handled by the web hosting provider

Cons

• no access to the system and therefore no configuration options
• variable performance, as the web space is on a server that needs to be shared with other customers

What is a VPS hosting?

With a VPS hosting, you have a virtual server environment. Using a Hypervisor, any number of virtual machines (VMs) can be run on one hardware. Each VM runs independently of the others and can be started and stopped separately.

There are two types of hypervisors. A Type 1 hypervisor has direct access to the hardware and can distribute the resources to the different VMs without an intermediary layer. Each VM has its own independent operating system.

Type 2 hypervisors perform virtualization at the operating system level. They can only allocate hardware resources that the host operating system assigns to them.

Web hosting companies primarily use server virtualization due to its cost efficiency. Since multiple VPS hosting run on the same hardware, this solution consumes far fewer resources than would be the case with Bare Metal Servers.

Compared to their physical counterparts, Virtual Private Servers (VPS hosting) are less powerful. However, a virtual server offers some freedoms, as it can be configured according to the user's needs. Especially when compared to web hosting, a dedicated VM provides the user with significantly better performance and additional configuration options.

Additionally, VPS hosting can guarantee computing power as the hypervisor of each VM precisely allocates the available resources. Virtual processor cores in VPS hosting are also referred to as vCores. Performance fluctuations caused by other users in the system, as can occur with webspace, are eliminated here.

These advantages, however, come with increased responsibility, as a VPS hosting must be maintained by the customer. For those who cannot or do not wish to do this, most providers offer the option to opt for Managed Service. In this case, the provider takes over the administration for a fee.

Pros and Cons of VPS Hosting at a Glance

Pros

• Stable and good performance
• High freedom through system configuration
• Cost-effective compared to Dedicated Servers

Cons

• Server administration must be done by the user or a Managed Service must be booked
• Higher costs compared to webspace offerings

Web Hosting vs. VPS Hosting: Which is Suitable for Which Project?

When deciding between web hosting or VPS hosting, besides costs, the system requirements needed for your own web project should also be considered.

Web hosting is primarily suitable for smaller websites that require minimal resources from the system. For many online shops or blogs, the offered webspace packages are completely sufficient. Due to the lower costs, web hosting plans are particularly lucrative for start-ups, as projects are still relatively small at the beginning and budgets are limited. As demands increase and financial resources grow, switching to a virtual server is always possible.

With a VPS hosting, users have greater freedom to customise their project. The system can be configured according to individual requirements. A dedicated VPS hosting is therefore suitable for websites that require more storage space, RAM, or CPU power than what is available in web hosting packages. Additionally, a server should be used when aiming for better overall performance. However, the additional costs and maintenance effort should not be underestimated. Users should have server knowledge for administration. Otherwise, fees for a managed service must be factored in.

Also, check out a comparison of other web hosting products:

Web Hosting vs. Dedicated Server
Dedicated Server vs. Managed Server
Dedicated Server vs. VPS Hosting
Cloud Server vs. VPS Hosting

Our article is based on our own experiences, research, and information from external sources.

References & further links on the topic:
https://de.wikipedia.org/wiki/Hostrechner (Definition of individual server types)
https://www.itwissen.info/Webhosting-web-hosting.html (Definition of the term web hosting)

Image credit:
Gerd Altmann on Pixabay