Both host the same kinds of websites. The difference is how resources are allocated and how much of the server you must manage yourself.
Shared hosting
- Lower cost and easy setup, typically with a control panel
- The provider manages the server and updates
- Resources are shared, so heavy neighbours can affect speed
- Less control over server software
VPS hosting
- Dedicated share of CPU and memory
- Root access and custom software
- Better isolation between customers
- You (or a managed service) must handle security, updates and monitoring
How to decide
Choose shared hosting if you run a small site, want a control panel, and prefer not to administer a server. Choose a VPS when you need custom software, predictable resources, or have outgrown shared limits and have the skills to maintain it, or budget for managed support.
A common path
Many sites start on shared hosting or static hosting and move to a VPS only when metrics such as CPU limits or slow response times show a real need.