There are different types of hosting nowadays – shared hosting, VPS hosting and dedicated hosting are most known one. This article is aimed to help you choose most appropriate hosting type for your business.

Shared hosting is good for users which don't have particularly needs, who usually use standard technologies and don't have many hits on its server daily (less than 3000 is definitely OK). But if you use some especial technology which usually isn't supported by shared hosting providers, than you have to choose VPS or dedicated server.

VPS and dedicated, no matter what people say, are quite similar. When one work with them, he probably don't see difference. The only frequently visible difference is that with some VPS technologies you cannot change the kernel of its operating system.

Some VPS hosting could be even faster than dedicated hosting. Quality VPS hosting providers puts up to 16 users on one physical computer. That computer could be much faster than average dedicated server (with dual and quad processors/cores nowadays, probably with 8 or 16 processors/cores in future). It might be four to eight time more computation power than cheap dedicated server. Using that data it seems you will get 1/2 to 1/16 of computation power of dedicated server. But, in practice if your VPS provider don't do overselling of their physical nodes it might be better, since most users won't use much of their computation power. Also, other users will have peak in usage, but all that would allow your VPS more computation resources when needed, so in practice you are able to achieve almost same performances as with dedicated server. But, don't forget that some VPS hosting providers do overselling and they use cheap servers as physical nodes (as fast as crappy dedicated servers) and put many (approx. 50 or 100) users on one physical computer and performances get degraded. To conclude, if shared hosting don't suit your needs because you need special software, faster response or more computation power, first thing one should consider is VPS hosting. If you are quite sure that you need really big computation power (have many users, probably more than 10000 a day) and you have budget – you should go with good dedicated server to achieve better performances as possible.