When Smartphones took the market by storm in the 2000s, cell phone bills and data usage started soaring high for many families. We are all aware of an imperfect shared data plan for a family, wherein some months, the data would be racked up by someone, leaving the rest of the family strapped. But we all know that doing an unlimited plan is definitely a more cost-effective plan than the rest.
Giving this example was necessary because shared hosting is similar to a family plan. The responsibility is divided between the users, and one gets in trouble if he/she exhausts his/her portion of resources. VPS hosting, on the other hand, is quite similar to an individual data plan. You might be paying more as per your needs, but you will be getting more resources as well as control over the data setup for making any changing that you see fit.

Selecting an exemplary hosting service is crucial. It is known to depend on several factors. They include resource needs, scalability expectations, server administration preferences, cost constraints, security requirements, performance demands, and resource needs. 
Shared Hosting vs. VPS Hosting

In simple words, shared hosting indicates that the site will share the same server as many other websites. It is the cheapest option but comes with downfalls like limited performance, administration, and bandwidth. In the case of VPS hosting, you will get access to a premium option where customization is greater, automatically offering better performance. But, the price is high compared to shared hosting. The critical points in the difference between the two are discussed below.

Server Resources

As indicated by the name, shared hosting will have customers sharing the server resources, while dedicated hosting will get a server specially dedicated to their website. A VPS is considered in the grey line or in the middle, where a few slices of the same server act like they are specifically dedicated entities.
Many people also argue about VPS vs. VDS regarding user preference. A Virtually Dedicated Server is a cloud that allows users to provision any remote server available on the internet. VDS gives small-full scale server instances depending on the provider's resource capabilities and requirements.
Now if we have to discuss the pros and cons of shared and VPS hosting in the case of server resources, shared hosting has to deal with some limitations. Your website will only be eligible to use resources at a maximum point. On the other hand, VPS hosting provides greater resource availability and private disk space.

Performance

The performance of shared hosting is similar to those technologies where the host implements a CDN, caching software, or SSDs for speed. A user has more control over the speed aspect with the help of a VPS. As shared hosting is known to be cheaper, the performance will be affected. If you do not have high expectations regarding performance, then the return on investment is higher on shared hosting.

It does not a surprise that VPS hosting will provide better performance. There is also more flexibility concerning configuring applications on the server. But you will require a dedicated system administrator tto keep the system running n smoothly. Going for a VPS is a better choice for users who have to deal with multiple sites or high-traffic demands.

Security

The cost benefits are enormous when using shared hosting, but VPS hosting can be less safe than it is. It all comes down to how much the hosting provider has invested to ensure reliable protection. Shared hosting is usually dedicated, but security breaches might occur because there s no 100 percent guarantee. Customer support is also limited in most cases regarding shared hosting. However, if your website doesn’t collect personal information from users, you wouldn’t have much issue with shared web hosting.
In the case of VPS hosting, your site will be very safe with many safety features. You will also get access to better customer support when you have the budget. If you need to protect personal data, you need VPS.

Price

As discussed earlier, shared hosting is way cheaper than VPS hosting. The expenses are less in shared hosting because thousands of websites are using the same server. Shared hosting is economical compared to VPS hosting, which is known for offering premium features.

You must understand your business type better after knowing the critical differences between the two. Keeping your needs and preferences in mind, you can choose the best server for your website.