There are many different types of hosting plans out there, and ultimately what you choose for your site will be determined based on the simplicity or the complexity of your needs. First, start with the kind of website that you plan to run. Is it a simple blog with fair to moderate traffic? Do you provide a lot of different forms of media and use bandwidth sparingly? If so, then you may wish to consider a cheap alternative such as the shared hosting model. Shared hosting provides compartmentalization for your files from other sites on the same server. Sharing a server is a cheap alternative for businesses that are just starting out and for individuals, who simply want to blog about a topic that they are passionate about. However, the more control that you want over the configurations of your site, the more you will need to upgrade to something like a virtual private server, or VPS for short.
The VPS is a server that delivers all of the same basic functions of a dedicated server. It places fewer demands on you than the shared hosting platform does. While it costs a bit more, it is a far cheaper alternative than paying for your own dedicated server. Those, who would prefer VPS, are likely Linux users looking for a higher degree of customization. Sites on a VPS platform are far less likely to affect others in a negative way, unlike those on a shared hosting plan. With shared hosting you are always limited to a degree in your bandwidth, no matter what the claims say. Practically, there is a point where you can no longer perform at the same level of power.
How do you know when the time is right to make the jump from shared hosting to VPS? Knowing is as simple as knowing what your needs are as a business. When you have a clear growth plan in place and you start working toward those goals, then you are probably going to need more power to fuel your site's progress. If you have a relatively small amount of traffic, then you may wish to save costs on the shared hosting plan for as long as you can, but keep an eye towards an upgrade because as you accomplish your goals, more people will take notice and the site will increase in popularity to a breaking point, at least under shared hosting.
When the time comes to make the change, do not hesitate. VPS, while more expensive, is still far more affordable than doing it all yourself. As you learn and grow, keep an upgrade in mind, but have peace of mind in knowing that your site will always be there for the people, who need it.
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