We’re used to seeing the word ‘cloud’ stuck in front of basically every technological term out there. And while tech-savvy individuals have a decent grasp of what ‘the cloud’ is, the same can’t be said for all its potential applications.
So, before your read on let’s briefly touch on what is the difference between cloud hosting and shared hosting. Cloud hosting allows your website to be hosted on multiple synced servers all sharing resources. Shared hosting has multiple websites on a single server sharing resources.
Cloud hosting, for example, is not simply shared website hosting with a cloud badge stuck on the front of it. Cloud hosting is in a league of its own when compared to more traditional forms of shared hosting, and offers many unique advantages that qualify its existence.
What is cloud hosting?
At its most basic level, the critical differentiator of cloud hosting is the cloud. No prizes for that part. Just like cloud computing, cloud hosting gets its name because it draws computing power from “the cloud,” i.e. a pool of dynamically allocated resources across a large network of physical components, instead of a fixed set of hardware.
Cloud hosting is, in theory, infinitely scalable because it allows an unlimited number of machines to effectively act as one system. By leveraging virtualization, multiple physical servers are pooled together and presented to the website or application as one machine.
The benefits of cloud hosting mirror many of the benefits of other cloud computing services, such as improved reliability and redundancy, higher performance, and on-demand scalability. All of these are particularly well suited to websites, where a major new product launch or the unexpected success of a viral video can send flocks of new customers to a website in a matter of minutes.
Where regular hosting might break under the jump in workload (dependent on how much resource is permanently allocated to the site of course), with cloud hosting, the website’s resources can automatically scale up to meet the demand. This means that your website is always ready for the unexpected.
The pooling of resources also lends itself well to the website’s redundancy. With your website hosted over multiple servers instead of just one, the failure of one server will not mean the failure of your site.
Any slack left by a downed server is automatically picked up by the other servers in the cloud. If those servers are struggling then additional servers are automatically brought online to accommodate. Ultimately, cloud hosting is designed to deliver the guaranteed service level that your website needs.
Advantages of cloud hosting
- Highly scalable resources that can be adjusted on-demand
- Offers distributed server networks and dynamic resource allocation
- Minimal downtime due to server redundancy and failover capabilities
- Pay-as-you-go pricing model
- Advanced security features with enterprise-grade protection
Disadvantages of cloud hosting
- Generally more expensive than shared hosting
- Advanced knowledge required for custom configurations
- Potential vendor lock-in can make it difficult to switch providers
- Limited customization and control compared to dedicated servers
- Risk of data breaches despite enhanced security measures
What is shared hosting?
Shared hosting on the other hand is a web hosting solution where each customer receives a portion of the same physical server hardware to run their website or application.
Shared hosting is often the most economical way to get a project online, because the service provider houses multiple customers on a single web server, resulting in lower costs overall.
While shared hosting can be perfect as a cost-effective platform for less demanding projects, it certainly has its limits.
With several customers sharing one set of physical hardware, individual users can’t rely on a guaranteed level of server performance.
This might not be an issue for sites and applications with minimal requirements or low visitor numbers, but when it comes to running intensive, business-critical processes, many users find that shared hosting isn’t up to snuff.
Advantages of shared hosting
- Most cost-effective hosting solution with low monthly fees
- User-friendly management through simple control panels
- Pre-installed software and one-click installations for popular applications
- Technical support and maintenance handled by the hosting provider
- Ideal for beginners with minimal technical knowledge requirements
Disadvantages of shared hosting
- Limited resources and performance due to sharing server space
- Security vulnerabilities from sharing server space with other websites
- Lack of customization options and server control
- Potential downtime if other sites on shared server experience issues
- Limited scalability options for growing websites
How does cloud hosting work?
A major misconception about cloud hosting is that it doesn’t offer any significant performance boost when compared to a normal shared hosting solution. This couldn’t be further from the truth.
With cloud hosting, every single resource you configure is dedicated to you alone. Processors, RAM and SSD storage provide guaranteed performance on cloud hosting, exactly the same way they do on complete servers. In practice this means your WordPress blog or Drupal site can run with the same high level of performance you’d get from a dedicated server. Expecting higher visitor numbers? It’s a simple case of configuring increased server resources.
Like a shared platform, everything can also be managed from one central control panel, but with the flexibility to manage files via SFTP, install and update applications (e.g. WordPress), manage databases and DNS, and manipulate source code. Cloud hosting can be administered in just the same way as a physical, shared platform because the website and applications view it as such.
Virtualisation tricks the website into thinking it is still hosted on one piece of hardware — with the processors, RAM etc. that have been allocated to it. The fact that these resources are actually split among four different servers in two different data centres doesn’t matter.
But of course, as mentioned before, the biggest difference is that unlike shared hosting, cloud hosting offers fully dedicated resources that can be scaled on demand for guaranteed performance. A kind of ‘dedicated hosting’ option for users who want the increased power of their own server, but don’t want to deal with server management.
How does shared hosting work?
The reason shared hosting isn’t suitable for intensive applications? In a word: contention. The full power of the hardware will always be pulled in several directions at once, with different websites and applications in constant competition for processing power.
Imagine one customer on a shared platform gets a sudden spike in traffic. Luckily, other websites on the same server are quiet, so some resources can be allocated to cope with the extra visitors. But what happens when several websites are popular at once?
The server only has a finite amount of resources to parcel out, so intensive applications will regularly struggle to get what they need. The end result is inconsistent performance, slow loading times and a shoddy experience for the end-user. If your website is a major source of leads or sales, this presents a serious shortcoming.
Even with high contention, shared hosting can still use sophisticated technology to provide decent performance, at least for sites with low or medium requirements. But the fact remains: demanding sites will never get predictable, consistently high performance on anything other than a dedicated platform.
Cloud hosting vs shared hosting: How to choose the right option?
| Feature | Cloud Hosting | Shared Hosting |
|---|---|---|
| Performance | High performance with distributed resources | Moderate to low performance, affected by other users |
| Scalability | Highly scalable on-demand | Limited scalability |
| Cost | Pay-as-you-go, higher cost | Fixed low cost |
| Security | Advanced security features | Basic security measures |
| Resource Allocation | Dedicated virtual resources | Shared server resources |
| Management | May require technical knowledge | Simple and user-friendly |
| Reliability | High uptime with redundancy | Variable reliability |
| Customization | Flexible configuration options | Limited customization |
Choosing between cloud and shared hosting depends primarily on your business needs, technical requirements, and growth expectations. Cloud hosting offers superior performance and scalability but comes at a higher cost, while shared hosting provides an affordable entry point for smaller websites with basic needs.
Consider your website's current traffic levels, expected growth rate, and performance requirements. Small businesses and personal websites can often start with shared hosting, while enterprises requiring consistent performance and scalability should opt for cloud hosting.
Choose cloud hosting if you:
• Run an ecommerce site or business-critical application requiring consistent performance
• Expect significant traffic growth or experience seasonal traffic spikes
• Need advanced security features and reliable uptime
• Have the budget for premium hosting services
Choose shared hosting if you:
• Are launching a small business website or personal blog
• Have limited technical knowledge and prefer simple management
• Operate with a restricted budget
• Don't expect significant traffic growth in the near future
• Run a basic website without complex functionality
Neal Thoms is a content editor at Fasthosts. His main focus is cloud technology and how it’s transforming everything we do online. He’s worked in the web hosting industry for over five years.
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