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What is Hosting? Types of Hosting, VPS vs Shared Hosting Comparison, How to Choose the Right One

Latest Update: 28/08/2025

What is Hosting? Types of Hosting, VPS vs Shared Hosting Comparison, How to Choose the Right One

Are you wondering what hosting is and which solution is suitable for your website to operate stably? The current market offers various hosting services like Shared Hosting, VPS Hosting, Dedicated Server, or Cloud Hosting, each with its own advantages and limitations. This article will help you understand the differences between Shared Hosting and VPS Hosting, when to choose which service, as well as important criteria for selecting the best hosting for your needs.

What is hosting?

What is hosting?
What is hosting?

Hosting is a service that stores data and content of a website on servers connected to the Internet. When you register for hosting, all images, videos, source code, and databases of your website will be stored at the provider's data center, ensuring your website can operate continuously 24/7 and be accessible from anywhere.

Currently, there are several popular types of hosting services in the market:

Shared Hosting: Multiple websites share resources on one server, low cost, easy to use.

VPS Hosting (Virtual Private Server): A separate virtual server divided from a physical server, allowing more flexible customization and management.

Dedicated Server: An entire physical server dedicated to one customer, powerful performance but high cost.

Cloud Server: Hosting service on cloud platform, virtualized from multiple physical servers, easy to scale resources as needed.

In other words, hosting is a mandatory platform if you want your website to operate professionally, stably, and reach users on the Internet.

What is shared hosting?

Shared Hosting is a website hosting service where multiple websites typically share resources on one server. Each website will have its own space in the system, but still shares CPU, RAM, bandwidth, and other resources with other websites.

How it works: The hosting provider sets up a physical server, then divides storage space for multiple customers. Since everyone shares resources, when one website consumes too much (for example, experiencing sudden traffic spikes), other websites may be affected in terms of speed.

Advantages of shared hosting:

  • Low cost, suitable for individuals or small websites
  • Quick setup, simple management, doesn't require technical knowledge
  • Many providers also integrate built-in support tools like cPanel, email, basic security

Disadvantages of shared hosting:

  • Limited resources, not suitable for high-traffic websites
  • Low security level, easily affected if another website on the same server encounters problems
  • Difficult to customize advanced configurations due to provider limitations
shared hosting
shared hosting

What is VPS hosting?

VPS (Virtual Private Server) or VPS Hosting is a virtual server service created using virtualization technology. From one physical server, the provider will divide it into multiple independent virtual servers, each VPS having its own operating system, CPU, RAM, storage, and IP address.

How it works: Virtualization technology allows separating resources on a physical server into multiple independent spaces. This allows a VPS to operate almost like a real server, but at a much lower cost than renting a Dedicated Server.

Advantages of VPS hosting:

  • High performance, more stable than Shared Hosting thanks to separate resources
  • Better security, not affected by other websites on the same server
  • Full administrative control, installation and customization according to needs

Limitations:

  • Higher cost than Shared Hosting
  • Requires server administration skills, or need to hire management services

Currently, many businesses are trending toward switching from traditional VPS Hosting to Cloud Server - a more modern solution using cloud computing infrastructure. Cloud brings flexible scalability, high stability, and is especially suitable for websites or applications with rapidly growing traffic.

Detailed comparison table: VPS hosting vs shared hosting

CriteriaShared HostingVPS Hosting
ResourcesShares CPU, RAM, storage with many other websitesAllocated dedicated resources (CPU, RAM, SSD) through virtualization technology
PerformanceEasily slowed down when other websites on the server consume many resourcesStable performance, less affected by other websites
SecurityHigher risk, as one hacked website can affect the entire serverBetter isolation, higher security thanks to separate virtual environment
ScalabilityVery limited, difficult to upgrade when website growsFlexible, can easily upgrade CPU, RAM, SSD when needed
ManagementSimple management, provider handles most (suitable for beginners)Requires server administration knowledge (or choose Managed VPS with support)
CustomizationLimited installation, no root accessFull root access, install software and operating system as needed
PriceCheapest (usually from tens of thousands to hundreds of thousands/month)Higher than Shared (hundreds of thousands to millions/month depending on configuration)
Suitable forIndividuals, small blogs, company introduction websites, new startupsBusiness websites, e-commerce, high-traffic websites, requiring security & stability
Technical supportUsually basic, some limitations in installation or handling advanced issuesDepends on service package: Managed VPS has full support, Unmanaged VPS customers handle themselves
How to choose the right hosting service
How to choose the right hosting service

How to choose the right hosting service

To choose the right hosting service, you need to clearly identify your actual needs and consider important factors before making a decision:

Based on actual needs:

Traffic volume: Personal websites or small blogs can use Shared Hosting, while business websites, e-commerce, or projects with large traffic should choose VPS Hosting or Cloud Server.

Budget: If you want to save costs, Shared Hosting is a reasonable choice. If you have a medium to high budget, VPS Hosting or Cloud Server will be more optimal.

Administration skills: Beginners should choose Shared Hosting or VPS/Cloud with managed services. For businesses with IT teams, you can choose VPS or Cloud Server for deep customization.

Important criteria to consider when choosing hosting:

CPU & RAM: Directly determines processing speed and ability to respond when many people access simultaneously.

SSD storage: SSD drives help websites load faster, important for SEO and user experience.

Bandwidth: Needs to be large enough to meet traffic volume, avoiding congestion or slowness.

Backup & data recovery: The service must have automatic backup systems to ensure website data safety.

Frequently asked questions about hosting

1. What is hosting and why do websites need hosting?

Hosting is a service that stores website data on servers connected to the Internet. Without hosting, websites cannot operate and display for users to access.

2. How do shared hosting and VPS hosting differ?

Shared Hosting is cheap and easy to use but resources are shared with many other websites. VPS Hosting has dedicated resources, better performance and security, suitable for business or e-commerce websites.

3. When should you choose shared hosting?

Shared Hosting is suitable for individuals, small blogs, or newly built websites with low traffic and limited budget.

4. What are the outstanding advantages of VPS hosting?

VPS Hosting provides stable performance, better security than Shared Hosting, and allows configuration customization according to needs. This is the optimal solution for high-traffic websites or those requiring high speed and security.

5. Can cloud hosting replace VPS hosting?

Cloud Hosting is considered a new trend thanks to flexible scalability, stability, and high availability. However, VPS Hosting is still suitable for many small and medium businesses, while Cloud Hosting is usually for systems requiring large processing or rapid growth.

6. What is the most important criterion when choosing hosting service?

Factors to consider include: CPU, RAM, SSD storage, bandwidth, backup mode, and technical support services from the provider.

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