When a website starts to slow down, or a developer wants to install software that the hosting service doesn’t allow, sooner or later the question arises: what is the difference between a VPS and web hosting, and when is it worth making the switch? At first glance, the two services appear similar: both run websites, and both are rented for a monthly or annual fee. The difference lies in who owns the resources, who operates the software, and how much freedom you have.

In this guide, we explain how the two solutions work in simple terms, compare them in a table, go through which is suitable for which type of website, and summarise the signs that indicate it’s time to switch to a VPS.

An analogy: a flat in a block of flats versus a house of one’s own

Shared web hosting is like renting a flat in a block of flats. Everyone shares the communal infrastructure (stairwell, heating, water), the property manager takes care of maintenance, and all you have to do is move in. It’s convenient and cheap, but you can’t knock down any walls, and if your neighbour turns on all the taps at once, the water pressure will drop in your flat too.

A VPS is like a flat with its own meters and its own key to the server room. The plot of land and the building (the physical server) are still shared, but the resources of the flat are yours alone, and you can configure them however you like. In return, maintenance is your responsibility, unless you entrust it to the caretaker.

What is shared web hosting?

With shared hosting, many customers’ websites run on a single physical server, using a shared operating system and shared web server, PHP and database software. The provider installs, updates and secures the entire software environment, whilst you manage your websites, email accounts, databases and SSL certificates via a graphical control panel (such as cPanel).

To prevent an overloaded site from slowing down the others, the provider sets upper limits on CPU, memory and disk usage for each account. On aWh’s cPanel hosting plans, this is handled by CloudLinux, which also isolates accounts from one another (CageFS), meaning that one customer cannot see another’s files. This largely eliminates the ‘bad neighbour’ effect, but the resource limits are tied to the plan, and the software environment is determined by the provider.

Advantages: low price, no system administration skills required, updates, backups and security settings are handled by the provider, and email and SSL are ready to use straight away.

Limitations: you do not have root access; you can only run software supported by the provider (typically PHP, MySQL/MariaDB, and, in some plans, Node.js and Python); and CPU and memory limits are fixed according to the plan.

aWh’s shared hosting plans: KeyHelp-based web hosting (with a free ‘Web Free’ plan; paid plans start from €6.53 per year), cPanel hosting and WordPress hosting.

What is a VPS?

A VPS (virtual private server) is a software-isolated portion of a physical server. The virtualisation layer allocates dedicated processor cores (vCPUs), memory and storage to each VPS, and each VPS runs its own operating system. You have root (administrator) access to the server: you choose the Linux distribution, you install the web server, the database and all other software, and you configure the firewall.

The method of virtualisation matters. KVM (Kernel-based Virtual Machine) provides full virtualisation: each VPS runs its own kernel, as if it were a standalone machine, meaning that any operating system and kernel module can be used, and the virtual machines are tightly isolated from one another. With container-based solutions (such as OpenVZ or LXC), VPSs share a common kernel, which is cheaper but offers less flexibility. Our article comparing LXC- and KVM-based VPSs discusses the differences between the two. aWh’s KVM VPS servers run on KVM virtualisation with NVMe SSD storage.

Advantages: guaranteed resources, root access and complete software freedom (Docker, Node.js, Python, your own database server, any PHP version and module), your own IP address, easily scalable.

Drawbacks: higher cost, and you’re responsible for running it: updates, security settings and software maintenance. If you don’t have the time or expertise for this, you can opt for a managed VPS, where an expert takes care of these tasks for you.

Comparison in a table

Criteria	Shared web hosting	VPS
Resources	Shared server, with CPU, RAM and I/O limits per account	Guaranteed vCPU, RAM and storage
Operating system	Shared: the provider chooses	Your choice (Linux or Windows)
Authorisation	User account, control panel	Root / system administrator
Software	The environment offered by the provider (PHP, MySQL, etc.)	Anything that runs on that particular OS
Operations	The provider carries out	You manage it yourself (or a managed VPS)
Management	Graphical user interface (cPanel, KeyHelp)	Typically SSH and command line; control panel optional
Email	Pre-configured and ready to use straight away	You’ll need to install and configure it yourself
Security	The provider protects the server; accounts are isolated	Strong isolation, but the configuration is your responsibility
Expansion	A larger plan, within the limits of the plans	CPU, RAM and storage can be upgraded more flexibly
Price	The cheapest, from just a few tens of euros a year	Higher, monthly fee

Performance: why is a VPS faster, and when isn’t it?

A well-configured shared hosting plan with NVMe SSDs and modern processors will serve an average website quickly; visitors won’t notice any difference compared to a VPS. The difference becomes apparent under heavy load. With shared hosting, the plan limit is the upper limit: if too many requests arrive at once, the requests are queued, or visitors receive 503 or 508 errors. On a VPS, the allocated processor cores and memory are used exclusively by your applications, and you can tune the software (web server, PHP-FPM, database, cache) to suit your own workload.

It is important to note, however, that a small VPS is not necessarily faster than a large hosting plan. On a VPS with 1 GB of RAM, the web server, PHP and the database all rely on this memory, whereas with a hosting plan, these run on the provider’s shared, optimised server software. It’s worth switching to a VPS if the limits of shared hosting are too restrictive, not simply in the hope of faster speeds. We’ve written about how hosting speed relates to Google rankings in our article on fast hosting.

Security: isolation and liability

With shared hosting, the provider is responsible for server security: they update the operating system and server software, run malware scans (for example, ImunifyAV+ on aWh’s cPanel servers), and filter out DDoS attacks. Because accounts are isolated from one another, a compromised neighbouring site cannot access your files. However, you are responsible for your website (updating WordPress and plugins, and managing passwords).

Isolation is stronger on a VPS because the virtual machines run on separate kernels and have separate file systems. However, everything that happens within the VPS is your responsibility: if you fail to update the system, leave a port open or allow SSH access via a password, the server will become vulnerable. A poorly configured VPS is less secure than a well-managed shared hosting plan. We’ve compiled the most important settings in our VPS security guide.

Management: control panel or command line

You manage your shared hosting via a graphical control panel. Installing WordPress, creating an email account or activating an SSL certificate takes just a few clicks. You can also access backup and restore functions via the control panel; on aWh’s cPanel hosting plans, you can restore files, databases or your entire account yourself from the daily JetBackup.

You usually manage a VPS via SSH, using the command line. If you’d like a graphical interface, you can install a server control panel (cPanel, Plesk, DirectAdmin, or free alternatives such as HestiaCP), but you’ll be responsible for maintaining this yourself, and the licence fees for cPanel and Plesk are an additional cost. Our knowledge base article provides an overview of the control panels available for VPS.

Which one should you choose?

Web hosting, if…

• Whether you’re launching a personal website, a blog, a portfolio or a small online shop,
• Whether you use WordPress, Joomla or another PHP-based system,
• Wouldn’t you prefer not to run a server yourself, and to leave updates, backups and security to the provider?
• It’s important that your email works straight away with your own domain.

Shared hosting is sufficient for the vast majority of websites. If you’re just starting out, this is the place to begin; our pre-purchase checklist will help you choose the right hosting plan.

VPS, if…

• you’d be running software that isn’t supported by the hosting service: a Node.js or Python application, Docker, your own database server, a Redis cache, a custom PHP module,
• If your website regularly reaches the CPU or memory limit of your hosting plan,
• If you run a high-traffic online shop or portal where reliable performance is essential,
• If you need your own IP address, custom firewall rules or special server settings,
• As a developer, you would set up a test or staging environment.

aWh’s KVM VPS plans start from €4.62 per month (excluding VAT), with daily backups, snapshots and DDoS protection. If you want to run software written for Windows, a Windows VPS is the right choice; this is covered in the guide on renting a Windows VPS.

A compromise solution: dedicated cPanel

If you’ve outgrown the limits of shared hosting but don’t want to manage your server via the command line, a dedicated cPanel is the middle ground. This is a KVM VPS with a cPanel licence that’s all yours, managed by us: you work within the familiar cPanel interface, you don’t share the server’s resources with other customers, and we take care of system maintenance. It’s a good choice if you’re managing a high-traffic site or lots of smaller websites.

When should you switch from web hosting to a VPS? Five signs

1. Resource limits: the control panel regularly indicates that you are reaching the CPU, memory or process limits, and visitors receive a 503 or 508 error.
2. Slowdowns during peak times: the site slows down noticeably during campaigns, newsletter sends or special offers, even though you’ve already optimised the code and images.
3. Missing software: you need a program, version or module that the hosting service does not support and will not support.
4. Background processes: long-running tasks, batch processors, WebSocket connections or applications that need to run continuously, which cannot be run on shared hosting.
5. Growing business risk: your online shop’s turnover is so high that even a slowdown or outage results in a significant loss of revenue, so you need predictable, guaranteed resources.

Before doing so, it’s worth checking whether a larger hosting plan might solve the problem: it’s often cheaper and more convenient than running a VPS. We’ve also written in more detail about the signs that it’s time to switch.

The migration process

If you decide to go for a VPS, the steps for migration are as follows:

1. Setting up a VPS: operating system, web server, PHP, database server, firewall, SSL – or installing a server management panel.
2. Data transfer: backup of the website files and database, then restoration to the new server.
3. Testing: by editing the hosts file on your computer, you can view the site on the new server before the domain is switched over.
4. DNS configuration: point the domain’s A record to the new server’s IP address; the change will take effect within a few minutes to a few hours.
5. Email: if your email has been hosted on your web hosting account up to now, decide whether to move it to the VPS or to a separate email hosting service. The latter is often the simpler option, as running an email server requires specialist knowledge.

If you get stuck, drop us a line – we’ll help you with the migration.

Summary

Shared web hosting is all about convenience: it’s cheap, ready to use straight away, and the provider takes care of running the server. A VPS is about freedom and predictable performance: you get guaranteed resources and root access, but in return, you’re responsible for the server. For most websites, web hosting is sufficient; you’ll need a VPS when the limitations of your hosting plan or software constraints are already holding your project back.

aWh offers both solutions, with 99.9% uptime and expert support. If you can’t decide which one’s right for you, just tell us what you’d like to run, and we’ll help you choose.

Web hosting plans · KVM VPS plans

Frequently Asked Questions

Which is cheaper: web hosting or a VPS?

Web hosting, because the cost of the server is shared amongst many customers. At aWh, web hosting starts with the free ‘Web Free’ plan and a paid plan costing €6.53 per year, whilst KVM VPS starts from €4.62 (excluding VAT). The price of a VPS includes guaranteed resources and freedom, but you should also factor in the time spent on operation or the cost of a managed service.

Is a VPS harder to manage than web hosting?

Yes. On an unmanaged VPS, you have to install and update the software yourself, as well as configure the firewall and backup; this requires knowledge of Linux and experience using the command line. Web hosting, on the other hand, is managed via a graphical interface, without the need for server-side knowledge.

Can I switch from web hosting to a VPS at a later date?

Yes, this is the usual procedure when a website outgrows its shared hosting plan. You’ll need to transfer the files and the database, then point the domain to the new server. If you get stuck, we’re here to help.

Is a VPS more secure?

Isolation is stronger because virtual machines run separate operating systems. Security, however, depends on the settings: an unpatched, poorly configured VPS is more vulnerable than a well-managed shared hosting service, where the provider takes care of server security.

What does ‘guaranteed resources’ mean?

This ensures that the vCPUs and memory allocated to your VPS cannot be used by other customers, so performance does not depend on your neighbours’ traffic. With shared hosting, the plan limit is an upper limit, but the server’s resources are shared amongst multiple users.

Do I get email accounts with the VPS?

Not automatically: on a VPS, you have to install and configure the mail server yourself (SPF, DKIM, DMARC, spam filtering, blacklist monitoring), which requires specialist knowledge. This is why many people host their email on a separate email hosting service, whilst running their website on the VPS.

How does a VPS affect SEO?

In short: if your website was slow or displayed errors due to the limitations of shared hosting, a VPS can improve loading times and Core Web Vitals metrics. However, if your website was already fast on shared hosting, simply moving to a VPS will not, in itself, improve your search engine ranking.

When is it better to choose a dedicated cPanel rather than a VPS?

If the limits of your shared hosting are too restrictive, but you’d like to retain the convenience of cPanel and managed hosting. Dedicated cPanel is a server with a cPanel interface that’s all yours and operated by us; you don’t need to work from the command line.

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