Managed Hosting Vs Shared Hosting: 7 Key Differences

Every website, be it a personal blog, e-commerce platform, or a digital portfolio, requires a home on the internet — a place where its data is stored and accessed by visitors. This “home” is provided by web hosting services.

However, not all hosting is created equal. The choice between different hosting types can significantly influence the performance, security, and management of your website. Among the various hosting options available, two of the most debated are “managed hosting” and “shared hosting.” Understanding the core difference between managed and shared hosting is paramount for anyone looking to launch a successful online presence.

Definition of Terms

Managed Hosting

Managed hosting is a service where all technical aspects of running a website are managed by the hosting company. This includes site security, performance, updates, daily backups, and scalability. Essentially, the hosting provider takes on the role of an IT department, ensuring that the server is running smoothly, is secure, and is optimized.

A managed hosting plan typically comes with higher levels of support, and it’s especially popular among businesses and websites that have specific performance and security requirements. An emerging trend in this arena is managed WordPress hosting, which is optimized explicitly for WordPress websites, ensuring they run fast and securely.

Shared Hosting

Shared hosting, as the name suggests, means that your website shares a server with multiple other websites. It’s like living in a dormitory where you have your own room, but you share common areas like the lounge and kitchen. In the world of web hosting, these “common areas” are server resources such as RAM and CPU.

Given this, a shared hosting plan is generally more affordable, making it a popular choice for beginners and small websites. However, because resources are shared, there can be limitations in performance, especially when one of the hosted websites experiences a surge in traffic.

What is ERP Hosting?

ERP (Enterprise Resource Planning) hosting refers to the practice of deploying and managing ERP software on cloud-based infrastructure or dedicated servers, rather than on-premises hardware.

This approach allows businesses to access their integrated applications for managing business processes in a centralized, remote environment, often leading to enhanced performance, scalability, and cost savings. By relying on ERP hosting, companies can focus on optimizing their operations without the direct challenges of maintaining physical servers and infrastructure.

Key Differences Between Managed and Shared Hosting

To make the comparisons below more easily understood, we’ve used web hosting as an example. This information also applies to ERP hosting and many other types of hosting as well.

#1. Resource Allocation

When discussing managed hosting vs shared hosting, one of the most glaring differences lies in how resources are allocated. In a shared hosting plan, your website is essentially placed on a server with multiple other sites.

A large server room

Think of it as renting a room in a communal house. While you have your private space, you still share resources such as water, electricity, and common areas with others. In the realm of web hosting, these shared resources include server components like RAM, CPU, and storage. This shared nature can sometimes lead to performance issues, especially if a neighboring site suddenly experiences a traffic surge or utilizes more than its fair share of resources.

In contrast, managed hosting often provides dedicated resources. This means your website gets its exclusive set of resources, ensuring more stable and predictable performance. It’s akin to having your own apartment with dedicated utilities — no need to worry about the neighbor’s activities affecting you. 

#2. Control and Customization

The level of control and customization is another area where shared vs managed hosting show stark differences. Most shared hosting environments come with a standard control panel, typically cPanel, which allows users to manage various aspects of their hosting. However, the degree of customization might be limited because changes can potentially affect other websites sharing the same environment.

Managed hosting, on the other hand, often offers more tailored solutions, especially if you opt for a managed WordPress hosting service. Such services are optimized for WordPress, providing specific tools and features to enhance the performance and security of WordPress websites. Moreover, they often allow for more granular control over server settings, ensuring your site operates exactly as you intend.

#3. Site Security

Site security is paramount in today’s digital age. With shared hosting, since multiple sites reside on a single server, there’s a higher risk of security breaches. If one website on a shared server becomes compromised, it can potentially pose threats to other sites on the same server.

Managed hosting providers usually prioritize security. They offer features like regular malware scans, firewalls, SSL certificates, and more robust security protocols.

Many providers, especially those offering managed WordPress hosting plans, ensure the environment is optimized for WordPress security, reducing the risks of common vulnerabilities. The difference between managed and shared hosting in terms of security can often be quite significant.

#4. Performance and Optimization

Every website owner wants their site to load quickly and efficiently. With shared hosting, your site’s performance can sometimes be at the mercy of other websites sharing the server. If one of them experiences a spike in traffic or utilizes a lot of shared resources, it could slow down your website.

Managed hosting is typically geared towards optimal performance. Providers often use advanced caching mechanisms, content delivery networks (CDNs), and specially configured servers. Moreover, a managed WordPress hosting service is specifically optimized for WordPress. This ensures that WordPress websites load swiftly, offering a better user experience.

#5. Automatic Updates

Staying updated is crucial for website security and performance. In the battle of managed vs shared hosting, the former often takes the lead in this domain. Managed hosting usually comes with automatically updated software, plugins, and security patches, ensuring your website is always running the latest and most secure versions.

While shared hosting also offers updates, they might not be as prompt or seamless. It could be up to the website owner to initiate and oversee these updates in many shared hosting plans.

#6. Email Accounts

Email accounts play an integral role in professional communication. Shared hosting often provides basic email services, where you can set up email accounts using your domain. However, there might be limitations in terms of storage or the number of email accounts you can create.

Managed hosting, especially premium plans, tends to offer more advanced email solutions. These include better spam protection, larger storage capacities, and enhanced integration options.

#7. Pricing and Plans

Last but not least, there’s a noticeable difference in pricing between managed and shared hosting. Shared hosting is generally more affordable, making it a preferred choice for startups and small businesses.

Managed hosting, with its suite of enhanced features and dedicated resources, often comes at a premium. However, considering the pros and cons of both options, it’s essential to evaluate not just the cost but the value offered.

Pros and Cons of Managed Hosting Vs Shared Hosting

The choice between managed and shared hosting largely depends on individual needs and priorities. Let’s dive into the specific advantages and disadvantages of each.

Managed Hosting


  • Performance: Managed hosting usually offers better speed and uptime since it’s optimized for performance. Especially with a managed WordPress hosting plan, your WordPress website is guaranteed to run smoothly. 
  • Security: Enhanced security features like regular backups, malware scans, and firewalls make managed hosting a safer bet. 
  • Support: Most managed hosting plans come with premium customer support, helping users troubleshoot issues efficiently. 


  • Cost: The enhanced features and dedicated resources make managed hosting pricier than its counterpart. 
  • Less Control: While it offers customization, some managed platforms can limit certain tweaks to maintain server integrity. 
  • Specificity: Managed WordPress hosting services, for instance, are tailored for WordPress sites. This can be a limitation if you plan to explore other platforms.

Shared Hosting


  • Affordability: Shared hosting is cost-effective, ideal for startups or personal websites with a limited budget. 
  • Ease of Use: With tools like cPanel, even beginners can navigate and manage their hosting without a steep learning curve. 
  • Versatility: Suitable for various types of websites and platforms.


  • Variable Performance: Since you share server resources, a traffic surge in another website can slow yours down. 
  • Security Concerns: The shared nature poses potential security risks, especially if one website gets compromised. 
  • Limited Resources: There may be caps on storage, bandwidth, or the number of email accounts. 

In sum, both hosting types come with their pros and cons. It’s essential to weigh these against your site’s requirements, budget, and future scalability needs.


Deciphering the difference between managed and shared hosting can feel daunting, but understanding your site’s needs simplifies the choice. While shared hosting offers affordability and versatility, managed hosting shines in performance, security, and tailored support, especially for platforms like WordPress. The role of a hosting company is pivotal in both cases, ensuring reliable service.

Ultimately, whether opting for managed hosting or shared hosting, the decision should align with your website’s goals, anticipated traffic, and technical proficiency. As the digital landscape evolves, staying informed about your hosting options empowers you to make the best decisions for your online presence.

Learn more about our ERP Managed Hosting Services. 

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