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What a VPS actually is, and when your business needs one

Shared hosting, VPS, dedicated server: what each one buys you, and how to avoid paying for the wrong one.
October 12, 2026 by
What a VPS actually is, and when your business needs one
Olorun Cloud

People ask us which hosting tier they should be on as if it's a loyalty program. It isn't. You're buying three different things, and there's a real cost to guessing wrong in either direction.

Shared hosting

One server, a few hundred websites, one big pot of CPU and memory. It works, it's cheap, and when another site on the box gets a traffic spike or someone runs a badly written query, you feel it too. Nothing is wrong with shared hosting by itself. We run plenty of things on it. But you're renting a desk in an office you don't control.

VPS

Virtual private server. One physical machine sliced into isolated partitions, and your partition comes with guaranteed CPU, RAM and disk. You get root access, so you install what you want and configure it how you want, without worrying that someone else's PHP version breaks your site. You pay more than shared, and if you're running anything with real users on it (an Odoo instance, a store, an API your mobile app phones home to) that's the correct trade.

Dedicated server

An entire physical machine, no other tenants on it. At this point you're paying for every core whether you use them or not. Most small businesses don't need this. If you're maxing out a large VPS, or you need raw disk performance or hardware you can't virtualise, that's when it earns its place.

So when do you actually move up?

The trigger isn't a number on a graph. It's the moment your hosting starts costing you customers. If your checkout slows down on payday weekend, or your ERP makes staff wait while records save, you've outgrown shared. If your site still loads fine and the only new thing is your own ambition, keep the money.

What we see most often in South Africa is companies paying dedicated-server prices for workloads a good VPS would handle, and other companies squeezing an Odoo instance onto shared hosting and then blaming Odoo for how slow it is. Both mistakes come from the same thing: nobody sat down and mapped the workload to the tier.

If you're not sure which group you're in, tell us what you're running and what it costs you today. We'll tell you straight whether you need to move, and sometimes the honest answer is that you don't.

For the managed route, our Odoo Class Cloud is a pre-configured private Odoo environment on exactly this model: your own instance, on guaranteed resources, maintained by us.

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