Plain and simple, a dedicated server is a much higher expense than say, shared hosting. If you aren’t sure that you need all of the resources of a dedicated server, you may want to consider choosing a more cost effective option like VPS. If your business is new and you need to keep costs low, a dedicated server might not be the best option. Start with VPS and when your company starts to generate enough revenue to support the cost of a dedicated server, you can easily upgrade.

One of the most important factors when determining if you should choose VPS or a dedicated server is the type of resources your site needs. If you answer “yes” to one or more of the following questions, you should strongly consider choosing a dedicated server:

• Do you intend to host large media files that will require extensive amounts of storage space and bandwidth?
• Will your site require a lot of processing power to run scripts and back-end applications?
• Do you expect to have an enormous amount of visitors that will necessitate a lot of bandwidth even without large media files?