Hosting types compared: shared, VPS, dedicated, public cloud and managed cloud

How each kind of hosting works, how it is usually priced, who it fits and what to watch for on the bill.

This table compares hosting types, not providers. Many businesses combine rows, for example shared hosting for a brochure site and a cloud server for an internal app. The pricing units are the common ways each type is charged; dollar figures elsewhere on this site are illustrative ranges, not market prices. Read across a row to see where the type fits and where the bill usually grows.

Select a column header to sort.

Hosting typeHow it worksUsual pricingGood fit forWatch out for
Shared hostingMany customers' sites share one server and a control panelFlat monthly or annual plan, often discounted for the first termBrochure sites, small WordPress sites, email for a few peopleRenewal price after the promotional term, resource limits, add-on fees for backups, SSL or extra sites
Virtual private server (VPS)A virtual machine with fixed vCPU, RAM and storage on a shared hostFixed monthly price per plan, usually with a data transfer allowancePredictable sites and apps where someone can manage the serverYou patch and secure it unless it is managed; overage on data allowance; backups often extra
Dedicated serverA whole physical server rented to you aloneMonthly rental per server, plus setup, extra IPs and bandwidthSteady heavy workloads, licensing that needs dedicated hardwareLong minimum terms, hardware replacement times, scaling means buying more servers
Public cloud (IaaS)Rent virtual machines, storage and networking by the second or hourPay as you go per resource, with commitment discounts and spot capacityVariable or growing workloads, teams comfortable with cloud consolesEgress, snapshots, idle resources, public IPs, NAT gateways and support plans add up; often billed in USD
Managed cloudA provider or partner runs cloud or VPS servers for you: patching, monitoring, backupsInfrastructure cost plus a management fee per server, per month or as a percentageBusinesses without in-house systems staffWhat "managed" excludes, response times, mark-up on infrastructure, exit and handover terms
Platform services (PaaS, managed database)The provider runs the operating system and software; you deploy code or dataPer instance size, per request or per GB, often with free tiersDevelopers who want less server maintenanceUsage-based charges that scale with traffic, harder to move to another provider
ColocationYou own the server and rent space, power and connectivity in a data centrePer rack unit or rack, per kW of power, plus cross-connectsBusinesses with their own hardware and staff to maintain itHardware purchase and replacement, travel for hands-on work, remote-hands fees
On-premises serverA server in your own officeHardware purchase, power, internet, maintenance and staff timeSpecific local needs, legacy softwareSingle site risk, backups, cooling, security patching, replacement every few years

Pricing units are typical patterns, not rules; providers combine and rename them. All dollar ranges on this site are illustrative and exclude GST unless stated. Check prices on each provider's own price page for the region you will use (for example a Sydney or Melbourne region), on the day you buy. For GST on hosting bought from overseas, see the Australian Taxation Office. For privacy obligations when data is stored or accessed overseas, see the OAIC. For unfair contract terms in small business contracts, see the ACCC.