A shared server is usually considered to be the cheapest option for businesses and individuals who have very low needs for their websites. Shared servers are servers that hold multiple users on a single physical server, distributing server resources between multiple users.
This kind of server hosting is cheap and accessible to most starting businesses, which have a smaller budget and may have a limited utility for their website and online presence. Shared servers also require minimal effort to manage and are handled by the provider so maintenance is not a concern in the realm of shared servers.
Dedicated servers are servers accessible to a single organization or company, where resources are used for the needs of that organization only. Dedicated servers also allow access to more resources than a shared server can provide to the business. Dedicated hosting is ideal for fast-growing businesses and larger organizations that have a greater need for these business elements. These do require a few technical experts and dedicated maintenance to handle. There are many key differences between a shared server and a dedicated server:
Server Resources
Shared servers provide a limited amount of resources for a cheap cpanel hosting option, however for a growing business, this can slow their ability to grow and cause a number of issues in regards to the functioning of their website. If there is a traffic spike on your website, shared servers would not have the resources to handle it which would lead to server slowing down. Dedicated servers can easily handle large volumes of traffic and can handle the most needs of a well functioning website.
User Experience
Shared servers can grow incredibly slow in a traffic spike, and can make the website nearly accessible if the server shuts down. This can lose the businesses a great deal of profit and many clients. That would be far from ideal and hence, a dedicated server that had far better performance is ideal. The dedicated servers also have better performance simply because they are optimized for the needs of the organization.
Security
This is the 3rd and most important consideration, in regards to the business. Shared servers are managed by the service provider hence, the business has no say in the kinds of security protocol and standards that are being followed. This may leave the website open to viruses or hacks. Dedicated servers however allow you control over the security used by your website, making those the more secure option.
