There are two main types of hosting: shared and dedicated.  With shared hosting, multiple users can share the same physical resources like RAM or hard drives.  This means that shared hosting is way cheaper because the cost of running the server is shared by the users. Dedicated hosting gives the server’s resources to one user at a time, and that user is responsible for its upkeep.  This can be beneficial to a business because it can buy dedicated hosting with a one-time investment instead of purchasing it month-to-month with shared hosting, where the business would need to keep upgrading its server every year.  And this explains why dedicated hosting is more expensive. But then there is one in between shared and dedicated, and that is VPS hosting. With VPS hosting, the server still has multiple users on it, but the user has more control over their resources. They can upgrade or downgrade their server and have more control over their data and content. VPS gives you both worlds; it is slightly above shared hosting in terms of cost and gives you all the benefits of a dedicated server.