Hosting plans come with confusing names, but they differ in only two ways: how much of a server you share with other websites, and how much of the technical work you do yourself. Once you understand those two ideas, the four common types are easy to tell apart. This guide explains each one in plain English, who it suits, and when to move up.

The short version: most new sites should start on shared hosting or a small managed WordPress plan, and move to a VPS or cloud hosting only when the site's real numbers show a need.

The two questions that sort every plan

  1. How much of the server is yours? On cheaper plans, many sites share one server's memory and processor. On more expensive plans, a bigger share (or all of it) is reserved for you.
  2. Who looks after the server? On a managed plan, the provider handles updates, security and backups. On an unmanaged plan, that work is yours or your developer's.

More resources and more control cost more money, and more control usually means more work.

Shared hosting

Your site lives on a server alongside many others. It is the cheapest and simplest option and it works well for a new blog or a small brochure website.

  • Good for: new sites, personal sites, small businesses with modest traffic.
  • Trade-offs: you have limited control over the server, and a busy neighbour can occasionally slow things down.
  • Watch for: low introductory prices that rise at renewal, and caps on storage, email accounts or traffic.

Managed WordPress hosting

This is hosting built specifically for WordPress. The provider tunes the server for it and usually handles updates, caching, backups and security scanning, with support staff who know WordPress.

  • Good for: business sites on WordPress, and anyone who would rather spend time on their business than on maintenance.
  • Trade-offs: it costs more than basic shared hosting, and some plans restrict which plugins you can install.
  • Watch for: limits on monthly visits and on the number of sites per plan.

VPS hosting

A virtual private server (VPS) gives you a guaranteed slice of a server's memory and processing power, with administrator access to set it up the way you like.

  • Good for: custom software, sites that need predictable performance, and people who are comfortable with server administration (or have someone who is).
  • Trade-offs: you are responsible for security updates, firewalls and backups unless you pay for a managed VPS.
  • Watch for: the difference between managed and unmanaged plans. An unmanaged VPS looks cheap but costs your time.

Cloud hosting

With cloud hosting, your site runs across a connected group of servers, which makes it easier to add or remove capacity as demand changes.

  • Good for: sites with traffic spikes, such as a shop during a sale, and projects that expect to grow quickly.
  • Trade-offs: billing is often based on usage, which can make costs harder to predict.
  • Watch for: set a spending limit and alerts, so an unexpected traffic surge does not become an unexpected bill.

At a glance

  • Shared: the provider looks after the server, and you get limited control. Typical fit: new or small sites.
  • Managed WordPress: the provider looks after the server, including WordPress updates. Typical fit: business sites on WordPress.
  • VPS: you look after the server unless the plan is managed. Typical fit: custom or demanding sites.
  • Cloud: you or the provider, depending on the plan. Typical fit: growing sites with variable traffic.

How to choose

  • New or small site: start with shared or entry-level managed hosting.
  • Business site on WordPress: managed WordPress hosting saves the most time.
  • Custom app or heavy workload: a VPS or cloud plan, ideally with some support from a developer.
  • Spiky traffic: cloud hosting with a spending limit.

Whatever you choose, check the renewal price, whether daily backups and restores are included, and where the servers are located. If most of your visitors are in Australia, a server in Australia usually responds faster for them. The full checklist is in our guide to choosing web hosting.

When to move up

Do not upgrade on a hunch. Move to a bigger plan when the evidence is clear:

  • Pages are slow even after you compress images and enable caching.
  • Your host warns you about hitting resource limits.
  • You need software that your current plan does not allow.
  • Your traffic has grown steadily for several months.

Before any move, take a full backup and test the new site on a temporary address. If you also run a WordPress site, our guide to website builder vs WordPress explains the platform choice that comes before the hosting choice.

Questions people ask

Is shared hosting good enough for a business site?

For a small business site with modest traffic, yes. Check the host's backup, security and support features, and upgrade if the site becomes slow or outgrows the plan.

What is the difference between VPS and cloud hosting?

A VPS is a fixed slice of one server. Cloud hosting spreads your site across several servers and can scale up and down more easily, usually with usage-based billing.

Do I need managed hosting?

If you do not want to handle updates, security and backups yourself, a managed plan is worth the extra cost. If you are comfortable with server administration, an unmanaged plan can save money.

Can I switch from one type to another later?

Yes. Moving up from shared to VPS or cloud is common. Take a backup, move the site and test it before pointing your domain at the new server.