Choosing the right web hosting can feel overwhelming when you're staring at a dozen options with technical names and unclear pricing. Shared hosting, VPS, dedicated servers, cloud hosting, managed hosting, colocation. What do these actually mean, and which one fits your website?
This guide breaks down every major hosting type, explains what subdomains are and when to use them, and helps you figure out which setup makes sense for your project.
How Web Hosting Works
Web hosting is the service that makes your website accessible on the internet. When someone types your domain name into a browser, a hosting server receives that request and delivers your website's files, images, and content to the visitor's screen.
Every website needs hosting. Whether it's a personal blog, an online store, or a corporate application, the files have to live somewhere. The type of hosting you choose determines how much server space, processing power, and control you get.
The global web hosting market is valued at over $149 billion in 2025 and growing at nearly 20% annually. That growth reflects just how central hosting has become to every business with an online presence.
Types of Web Hosting Explained
Shared Hosting
Shared hosting is the most common and affordable option. Your website lives on a server alongside hundreds or even thousands of other websites. Everyone shares the same CPU, memory, and storage resources.
How it works: Think of shared hosting like an apartment building. You have your own unit, but you share the building's utilities and infrastructure with your neighbors. If someone on your floor throws a massive party, you might notice the impact.
Best for:
- Personal blogs and portfolio sites
- Small business websites with modest traffic
- Beginners who want simple setup without technical complexity
- Sites that don't run resource-intensive applications
Typical cost: $2 to $15 per month
Limitations: Performance can suffer if other sites on your server experience traffic spikes. You get limited customization and no root access. Security depends partly on your neighbors.
Shared hosting currently holds about 37% of the web hosting market, making it the most widely used option.
VPS Hosting (Virtual Private Server)
VPS hosting still places multiple users on a single physical server, but each user gets a dedicated portion of resources. Virtualization technology creates isolated environments, so your allocated CPU and memory belong entirely to you.
How it works: VPS is like owning a condo. You share the building with others, but your unit has dedicated utilities. What happens in your neighbor's condo doesn't affect your power or water.
Best for:
- Growing websites expecting 10,000+ monthly visitors
- Applications requiring custom server configurations
- Developers who need root access and flexibility
- Businesses that have outgrown shared hosting
Typical cost: $20 to $100 per month
Limitations: Resources are still finite. Scaling up requires upgrading your plan or migrating. Managing a VPS requires more technical knowledge than shared hosting.
Dedicated Server Hosting
Dedicated hosting gives you an entire physical server. No sharing. The full CPU, RAM, storage, and bandwidth belong exclusively to your website or applications.
How it works: This is like owning a house. You control everything from the foundation to the roof. No neighbors, no shared resources, no compromises.
Best for:
- High traffic websites with 500,000+ monthly visitors
- Applications handling sensitive data requiring maximum security
- Enterprises needing complete control over hardware and software
- Businesses with compliance requirements that mandate isolated infrastructure
Typical cost: $100 to $500+ per month
Limitations: Expensive. Resources are fixed and don't scale automatically. Requires significant technical expertise or managed services. If the server fails, you experience downtime until hardware is replaced.
Cloud Hosting
Cloud hosting distributes your website across a network of interconnected virtual servers. Resources scale dynamically based on demand. If one server fails, others pick up the load automatically.
How it works: Instead of relying on a single machine, cloud hosting draws from a pool of resources spread across multiple servers, often in different data centers. Traffic spikes? The cloud allocates more resources. Traffic drops? It scales back down.
Best for:
- Applications with unpredictable or seasonal traffic
- Businesses requiring high availability and minimal downtime
- Organizations wanting to pay for actual usage rather than provisioned capacity
- Companies planning for rapid growth
Typical cost: Variable, based on usage. Basic cloud hosting starts around $10 per month, but costs scale with resource consumption.
Limitations: Costs can be unpredictable without monitoring. Vendor lock-in is a concern with major providers. Complexity increases compared to traditional hosting.
Cloud hosting is the fastest growing segment of the hosting market, with an 18.3% compound annual growth rate.
Managed WordPress Hosting
Managed WordPress hosting is optimized specifically for WordPress sites. The hosting provider handles server configuration, security updates, backups, and performance optimization.
How it works: You focus on content and design. The hosting company handles the technical infrastructure, including WordPress core updates, plugin compatibility, and caching.
Best for:
- WordPress users who want a hands-off experience
- Bloggers and content creators who prefer simplicity
- Businesses running WordPress without dedicated IT staff
Typical cost: $15 to $50+ per month
Limitations: Only works for WordPress sites. Less flexibility than unmanaged options. Some providers restrict certain plugins.
Reseller Hosting
Reseller hosting allows you to purchase hosting resources in bulk and resell them to your own clients. You become a hosting provider without owning infrastructure.
How it works: You buy server space from a hosting company, then divide it among your clients under your own brand. The parent company maintains the hardware while you manage customer relationships.
Best for:
- Web designers and developers offering hosting to clients
- Agencies managing multiple client websites
- Entrepreneurs starting a hosting business
Typical cost: $20 to $100+ per month for the reseller package
Limitations: Your reputation depends on your upstream provider's reliability. Support responsibilities fall on you unless you pay extra.
Colocation Hosting
Colocation means you own the physical server hardware, but you house it in a professional data center. The facility provides power, cooling, physical security, and network connectivity.
How it works: You buy and configure your own servers, then rent rack space in a data center. You maintain full control over hardware and software while benefiting from enterprise-grade infrastructure.
Best for:
- Organizations with existing server hardware
- Businesses requiring complete hardware ownership for compliance
- Companies with the technical staff to manage physical servers
Typical cost: $100 to $1,000+ per month depending on rack space and power requirements
Limitations: High upfront hardware costs. You're responsible for all maintenance and repairs. Requires significant technical expertise.
What Is a Subdomain?
A subdomain is a prefix added to your main domain name that creates a separate section of your website. It appears before your primary domain in the URL.
For example, if your domain is example.com, you could create:
- blog.example.com for your blog
- shop.example.com for your online store
- support.example.com for your help center
- staging.example.com for testing new features
The subdomain functions as its own website while remaining connected to your main domain. Search engines often treat subdomains as separate entities from your primary site.
Common Uses for Subdomains
Content organization: Separate your blog, store, or documentation from your main marketing site.
Geographic targeting: Create regional versions like uk.example.com or eu.example.com for different markets.
Language versions: Use en.example.com and es.example.com for multilingual content.
Testing and staging: Build and test new features on dev.example.com before pushing to production.
Different platforms: Run your main site on one CMS while using a different system for your store or community forum.
Subdomain vs. Subdirectory
The alternative to a subdomain is a subdirectory (also called a subfolder). Instead of blog.example.com, you would use example.com/blog.
Key differences:
Subdomains can run on separate servers with different platforms and configurations. They require separate SSL certificates (unless using a wildcard). Search engines may treat them as distinct websites.
Subdirectories share the same hosting environment, SSL certificate, and CMS as your main site. They're easier to manage and often better for SEO because they consolidate your domain authority.
When to use subdomains:
- The section serves a completely different purpose than your main site
- You need a different platform or technology stack
- You want separate branding or design
- You're creating a testing environment
When to use subdirectories:
- Content is closely related to your main site
- You want to consolidate SEO authority
- Simpler management is a priority
How Many Subdomains Can You Create?
The number depends on your hosting provider. Most plans allow anywhere from 25 to 300 subdomains. Cloud hosting typically offers more flexibility. Creating subdomains is usually free once you have hosting, though each subdomain may need its own SSL certificate.
Choosing the Right Hosting Type
Your choice depends on several factors:
Traffic volume: Low traffic sites work fine on shared hosting. High traffic demands VPS, dedicated, or cloud.
Technical expertise: Shared and managed hosting require minimal technical knowledge. VPS, dedicated, and colocation require server administration skills.
Budget: Shared hosting costs a few dollars monthly. Dedicated servers and cloud infrastructure can run hundreds or thousands.
Growth expectations: If you anticipate rapid scaling, cloud hosting offers the most flexibility.
Control requirements: Need root access and custom configurations? VPS or dedicated. Want hands-off simplicity? Managed or shared.
Compliance needs: Regulated industries may require dedicated infrastructure or specific data center locations.
Host Your Website with Carpathian
Whether you need a simple web server or a fully customized cloud infrastructure, Carpathian offers hosting that fits your actual requirements.
What makes Carpathian different:
- No usage metering. Pay for instances, not CPU cycles.
- Component based pricing. Configure exactly what you need.
- Permanent upgrade options. Buy hardware once, use it forever.
- Free tier included. Every account gets a cloud server and web hosting at no cost.
- 99.5% uptime guarantee with automated backups and 24/7 monitoring.
Start with the free tier and scale when you're ready.
Configure your ideal setup and see exactly what it costs before committing.
Not sure which hosting type fits your project? We'll help you figure it out.