The Difference Between Shared IP and Dedicated IP Hosting

Shared IP hosting

Essentially shared IP hosting means that your website is sharing a server with other websites.

There is good and bad to this, but mostly it’s fairly invisible.

The good side of this is that your hosting costs are quite discounted. Some hosting companies like Bluehost offer shared IP hosting for around $6.95 per month.

As you can imagine, this makes the barrier to entry for startup websites quite low.

The bad news is that it’s quite easy to outgrow this kind of hosting package.

Any changes to your server made by the hosting company benefiting the others might not necessarily benefit you and large spikes of traffic to the other sites can bring your site down as well.

Getting your own IP address also allows you to expand your website beyond a regular blog or website, for example hosting a web service of some kind.

For regular websites I definitely recommend looking at shared hosting and upgrading to a dedicated IP address when the time comes. Especially when testing new ideas, hosting packages such as these are more than adequate.

Josh Kohlbach

Josh is a software entrepreneur from Brisbane, Australia. He spends most of his time helping e-commerce store owners. This is his personal blog where he shares his thoughts and other tidbits on online business and life in general.

This Post Has 7 Comments

    1. Totally – as an extra bit of info, a lot of processing gateways (for taking payments) require a dedicated IP. Something to think about..

  1. Is there some confusion here between a dedicated IP ADDRESS and a dedicated SERVER?

    You can be hosted on a shared server and still be able to have your own dedicated IP address. In fact, hundreds of other users could be on the same physical piece of hardware and all have there own unique, dedicated IP address. That won’t stop one of your server mates from swamping the machine with bad code, a Digg or a Slashdotting…

    But if you are on your own dedicated server, you don’t have to worry about your neighbors causing you grief.

    It’s kind of like living in an apartment building or living in your own single family house. 😉

    1. That’s a fantastic analogy Tony – great way to describe it.

      To my knowledge when choosing dedicated IP on a hosting platform like Bluehost for example, they actually set you up in a virtual server. So yep, you’re correct you’re technically on the same hardware.

      If you want your own hardware, quite often you’re talking big $$$

  2. I want to quote your post in my blog. It can?
    And you et an account on Twitter?

    1. Go for it – post a link when you do 🙂

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