I think choosing which server dedicated or shared is good is depends on the requirement of the organization.
Shared hosting is type of hosting in which single server is divided into multiple of clients. So this server can only be best for those companies who cannot invest large amount of money to purchases a whole server. It also depend on the requirement of resources a company required. Shared hosting is mainly preferred by startups because they initially don’t need to have that much of resources requirement.
Dedicated server is the server in which whole server is purchase by a single organization so that they don’t have to share the resources with anyone.
So its depends on the type of organization and the requirement of the resources to them that which server should prefer for there requirement.
Of course, dedicated web hosting is the best. You have a dedicated server, managed by professionals, ready for your use the way you want to.
This doesn’t mean it’s best for everyone.
This doesn’t mean you rush to invest in dedicated web hosting.
(Courtesy: Monster Insights)
When you’re leasing an entire web server, unsurprisingly, you will also have to pay accordingly. It’s much costlier. This is why the foremost question you should ask yourself is simple: do you even need a dedicated web hosting?
It’s a service type that’s ideal for heavy use; ideal to host websites and applications that get thousands and millions of visitors.
Do you have a website that gets that many visitors?
Do you have an app whose user base is that extensive?
Do you have a SaaS product that requires large space and bandwidth?
The fact that you’re even asking this question, I would assume your answers to the above questions would be “no” “no” and “no”.
This is why dedicated web hosting might not be a good idea. (Of course, if you can afford it then why not. But that’s a whole different topic!)
Shared hosting, on the other hand, includes one server where multiple sites/apps are hosted. Meaning, many people are using the same server to store their files and allow access.
In this shared setup, each user is allowed a limit of server’s resources that they can use (space, bandwidth, more). And if you exceed this limit where it’s compromising the allotted resources of other users, you would be requested to upgrade your plan. Repetitively exceeding the limit may even get your account suspended.
The rule is simple…
If you’re just starting your website or app, start with shared hosting. (Unless you’re 100 percent sure you’re going to run into limits due to high traffic!)
Start small and then as your needs progress, upgrade your plan and move to dedicated web hosting. (Upgrading is quite easy; your web host company would take care of that!) This is a more cost-effective measure.
Hope this answer helps!