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DreamHost VPS vs Shared Hosting (2021): Which One Do You Need?

Looking to build a site but you can’t decide which type of hosting to go for? This is understandable as there are many different types of hosting services and if you are not familiar with them, it can get overwhelming. Your budget and the host’s performance are important factors when choosing a provider. DreamHost is a hosting provider that offers both affordability and good performance with their shared and VPS hosting.

In this DreamHost VPS vs shared hosting comparison, we’ll take a look at both and highlight their advantages and disadvantages so that you can decide which one is right for you.

DreamHost VPS vs Shared Hosting Comparison Chart

PlansDreamHost VPS DreamHost Shared
PriceCheck Price at DreamHost.comCheck Price at DreamHost.com
Payment Options3 years
3 years
Upgradable RAMYesNo
WebsitesUnlimitedStarter: 1 website
Unlimited: Unlimited
Free SSLYesYes
EmailUnlimitedStarter: add-on (paid)
Unlimited: Unlimited
Money Backnone97 days

DreamHost VPS vs Shared Hosting

DreamHost VPS is more expensive but it gives you better performance and more control. Shared hosting is cheaper but it is also prone to poor site performance.

Some of the features that you get with DreamHost shared hosting.

With DreamHost shared hosting, you are sharing resources such as CPU, RAM and storage with other users on the server. Depending on your neighboring sites, this may or may not cause issues with your own website. If someone is hogging all the bandwidth, it may cause slowdowns on your site.

The biggest advantage of shared hosting is that it is cheap. It’s great for personal blogs or even small businesses that have small sites with just a few pages. If you are not expecting too much traffic for your site, shared hosting could be the best option as it is the cheapest. It also doesn’t require much technical knowledge when it comes to managing your server. However, it also has its downsides such as bandwidth limitation (even with hosts that offer “unlimited or unmetered” bandwidth), prone to slowdown when there is traffic surge and overall inferior performance when compared to other types of hosting.

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As for DreamHost VPS hosting, you are still going to share a server with other users. However, you will have a specific set of resources that’s reserved for you. Other sites in the same server won’t affect your site’s performance. The resources that you paid for will always be available to you and this eliminates the risk of having slowdowns or poor performance.

VPS hosting is great for users or businesses that expect high traffic and want to grow as it is scalable. If you have the budget, you shouldn’t skimp on hosting and go for VPS as it will prove to be worth it in the long run. You won’t have trouble with limited resources or poor site performance. You will also have more control over your server. Downside is that it is more expensive than shared. Another one is that you need to have a certain level of technical knowledge to fully operate and take advantage of VPS hosting.

DreamHost VPS Plans

There are four DreamHost VPS plans and the cheapest starts at $10/month.

DreamHost VPS offers features such as expandable RAM and storage and more.

DreamHost offers four VPS plans – Basic, Business, Professional and Enterprise plans. All of these plans have the same features except for storage and RAM. The more expensive plans feature more storage and RAM. As for the features, they offer unlimited sites, unlimited emails, unlimited bandwidth, automatic software updates, free SSL and more.

The Basic plan starts at $10/month while the Enterprise plan, the most expensive, starts at $80/month. Both of these prices are for three year terms. You have the option of paying monthly, annually or every three years. The longer terms will give you a discounted price.

DreamHost Shared Plans

There are two shared hosting plans from DreamHost and the starter plan starts at $2.59/month.

DreamHost shared plans feature a 97-day money back guarantee

DreamHost offers two shared hosting plans – Starter and Unlimited. The Starter plan starts at $2.59/month while the Unlimited plan starts at $4.59/month. These are discounted prices for three year terms. Same with their VPS hosting packages, the longer contracts give you discounted prices.

There’s only one difference between the two plans. With the Starter plan, you are limited to one website. For the Unlimited plan, there’s no limit to the number of sites that you can create.

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You can pay monthly, annually or every three years as well. If you choose an annual or three year payment scheme, you will receive a free domain.


DreamHost VPS is better than shared hosting in all areas of importance except for pricing.

DreamHost VPS advanced features.

In this section we’ll compare DreamHost’s VPS and shared hosting and see how they perform in different areas.

  • Performance and Reliability

DreamHost is one of the very few hosting companies that guarantee 100% uptime. From what we’ve seen from their VPS and shared hosting services, they weren’t able to give 100% but they came very close. For VPS hosting, the uptime was 99.98% and for shared hosting, it was 99.95% for one month. Anything above 99% is considered good and DreamHost was better than that. When it comes to uptime, their VPS service is better. That .03% difference might seem like a very small difference but in the long run, it can add up.

As for page loading times, their VPS service had an average of 400-500ms and their shared service had 500-600ms. They are both very good with their VPS service being a bit better.

  • Security

DreamHost offers free SSL certificates in all of their hosting plans, including shared and VPS, so encryption is not an issue. They have a very good security team in place and they do a fine job of securing their servers with security upgrades and updates.

Due to how it’s structured, shared hosting will always be more prone to security issues than VPS hosting. Since there are more users in a shared hosting environment, there are more websites and more websites increase the risk of attacks. A single user in your shared server that has a compromised site can cause problems with your site even if you perform the necessary steps to make sure that your site is secure. In this case, VPS is the better choice.

  • Scalability

Scalability is something that you should consider if you are serious about your business. VPS hosting is better equipped with dealing with traffic surges as you can scale very easily. A site using shared hosting might have trouble keeping up with high traffic and as a result, it might have performance issues.

  • Control and Management
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With VPS hosting, you have more control on which applications you want to install and use. You have more freedom when it comes to installing software that can improve site performance. However, a downside to this is that you need to have the necessary technical knowledge to do so. With shared hosting, you are usually limited to what you can install but this might not be a bad thing if you don’t really have the expertise to deal with a more hands-on server management approach. Even so, having more options is still better so VPS is the better choice when it comes to control and server management.

  • Pricing

Shared hosting definitely has the advantage when it comes to pricing as it is cheaper. It’s actually the reason why it is the most popular type of hosting. VPS hosting can be expensive but you also get better performance, security, scalability and control.


If you have the budget and you want better performance, go with DreamHost VPS hosting.

DreamHost VPS

Better overall hosting service

DreamHost Shared

Best for those on a budget

Choosing between DreamHost’s VPS or shared service will depend on what you are expecting from your website. DreamHost VPS is better when it comes to overall performance but it can be pricey. On the other hand, DreamHost’s shared service is very affordable but you will have to accept that it’s not as good when it comes to scalability, security and overall performance.

If it’s a new site that you are creating and you are not yet sure how it will perform in the long run, you might be better off with their shared hosting. DreamHost shared hosting is great for small sites like personal blogs or small business sites. It’s also an option if you are going to create sites to test out ideas. This way, you didn’t spend too much even if your site turns out to be a dud.

DreamHost VPS is great if you already have a site on a shared server and you need to upgrade to deal with traffic demands. It’s also a good choice for new websites that you are serious about growing due to easier scalability.


📌 Is VPS better than shared hosting?

When it comes to overall performance, yes, VPS is better than shared.

📌 Is VPS faster than shared?

Yes, since you are not sharing resources with other users in the same server.

📌 Is VPS shared?

Yes, it is very similar to shared hosting. However, with VPS, even though you are in a shared environment, you will always have access to the resources that you paid for.

📌 What are the benefits of VPS hosting?

Some of the benefits of VPS hosting over shared hosting:
– Better control
– Scalability
– Better uptime
– Faster load times

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Carlo Salvador

Senior Editor at Compare Before Buying. Writer and researcher passionate about fitness, gaming and music.