Shared servers are extremely inexpensive, allowing users to place their site on a device used by many other companies. Dedicated servers are the exact opposite, as users have their own physical device to use as they please.
According to a recent Electric Toolbox report, a virtual private server can offer the perfect balance of performance and price between shared and dedicated options.
The report said a VPS server is significantly more powerful than shared servers, offering almost exactly the same benefits of a dedicated device. Users can choose their own operating system, obtain dedicated resources and customize the device freely. The main difference between this and a dedicated server is that the dedicated option offers more resources, according to the report.
In terms of price, the VPS also falls between the other two options. Shared servers are the most inexpensive option, but VPS servers can be relatively comparable because the physical device is still shared, just by a smaller number of users.
According to a recent Web Hosting Geeks report, a VPS can actually be less expensive than a shared server because shared servers typically require an annual payment and setup fee, where VPS servers are usually paid for on a monthly basis.
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