Shared hosting has its advantages. And if you have a website that is purely informative, shared hosting is perfect for you. However, if your business depends on your website in any way, you cannot live with shared hosting for long. An article published in the Hosting News website last week discusses the indirect SEO benefits of a dedicated server. Among other things, the article says:
The most important thing that dedicated servers put on the table is complete control. It’s your server and you can use it as you please. This means that you have more control over the software that you’re using and that you can tweak absolutely everything.
Now, the problem with shared hosting is that you cannot depend on it when your web needs are big. When your website is critical for your business, you cannot afford to share a server with hundreds of other websites. You cannot afford a failure or downtime caused by one of the websites.
What you need is high availability, high reliability, better performance, and business continuity. A shared server cannot provide you these to your satisfaction. And the reasons are simple. A shared server means a limit to the bandwidth and disk space you can use. It means dependence of a sort on the other websites sharing it with you. You are not in charge with shared hosting. You cannot configure the server the way you want; you cannot install the applications you need. All these factors make shared hosting obsolete for emerging business needs.