Shared hosting and VPS hosting are the two most common entry points into the hosting market. They look similar in price at the low end but solve different problems and give you very different amounts of control.
What VPS hosting is
A VPS (virtual private server) is your own slice of a physical server with guaranteed CPU and memory. You can install any stack, run any app, and — depending on whether it's managed or unmanaged — either administer it yourself or have the host do it.
Performance differences
A well-tuned entry VPS outperforms a mid-tier shared plan under sustained load, primarily because you're not sharing CPU with hundreds of neighbours. For bursty traffic patterns the difference is dramatic.
When to upgrade to VPS
Upgrade when your shared plan hits sustained CPU limits, when you need Redis or Varnish, when you're consolidating multiple sites onto one bill, or when you need SSH and full control.
Managed vs unmanaged VPS
An unmanaged VPS (DigitalOcean, Vultr, Linode direct) is cheaper but expects you to handle updates, security and configuration. A managed VPS via Cloudways or a similar layer is more expensive but removes the sysadmin burden.
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Frequently asked questions
Is VPS faster than shared hosting?
For sustained load and dynamic sites, yes; for a single lightly-trafficked page, the difference is smaller than you'd expect.
How much does a VPS cost?
Managed VPS starts around $14/mo (Cloudways on DigitalOcean); unmanaged starts around $6/mo (DigitalOcean, Vultr direct).
Do I need technical skills for a VPS?
For unmanaged, yes. For managed VPS via Cloudways or similar, no — the dashboard handles it.
Can I run WooCommerce on a VPS?
Yes — most serious WooCommerce stores run on managed VPS.
How do I migrate from shared to VPS?
Cloudways offers a free migration; SiteGround GoGeek and Kinsta both offer free migration assistance.