In the digital realm, a business’s website serves as the cornerstone of its online presence. For small business owners, especially those on a tight budget, the allure of low-cost shared web hosting is often hard to resist. But is the price tag the only consideration? Let’s delve into the reality of shared web hosting and why it might not be the best option for your business.

The Allure of Low-Cost Hosting

In the early stages, the financial prudence of small business owners drives them towards cost-saving options, and understandably so. Shared web hosting, where numerous websites share the resources of a single server, often emerges as a tempting choice due to its low upfront costs. It’s a quick solution to get your website up and running with minimal financial strain. However, these low-cost hosting plans can come with some very expensive lessons, as the hidden costs associated with shared hosting could manifest in the form of unreliable service, potential data loss, and even lost sales when your website experiences downtime.

The Reality of Shared Web Hosting

Crowded Servers

Shared hosting platforms are known for being excessively crowded. It is not uncommon for a single server to accommodate numerous websites, sometimes reaching hundreds or even thousands. This overcrowding has a detrimental impact on the loading speed of your website, consequently affecting both user experience and SEO rankings. Given that even a slight delay of a few seconds can result in a considerable decrease in website traffic, the consequences can be quite severe.

Shared Resources

When multiple websites share resources like memory, CPU, and disk space on a server, the performance of your website becomes linked to the actions of other sites. If another website experiences a sudden increase in traffic, it could negatively impact the loading speed of your pages or, in extreme cases, cause your website to crash.

Therefore, it is crucial to carefully consider the hosting environment and choose a provider that offers reliable and scalable resources. Opting for a dedicated server or a virtual private server (VPS) can provide more control and ensure that your website’s performance is not affected by the activities of other websites. Additionally, implementing caching mechanisms and optimizing your website’s code can help mitigate the impact of shared resources and improve overall performance.

Impact on Your Business

The implications of these issues extend beyond mere technical glitches. A slow or inaccessible website can lead to a loss of sales, frustrated customers, and a tarnished brand reputation. In the online realm, reliability and speed are not just luxuries; they are necessities for sustaining and growing your business.

Case Study: The Repercussions of Shared Hosting Outages

Endurance International Group (EIG), a prominent provider of shared hosting services through brands like BlueHost and HostGator, has encountered multiple outages, serving as a clear instance of the potential problems associated with shared hosting.

These outages have resulted in widespread disruption for businesses hosted on EIG’s shared servers. Many websites experienced extended periods of downtime, leading to loss of revenue, diminished user trust, and negative impact on brand reputation. As a result, businesses are increasingly recognizing the importance of investing in more reliable hosting solutions that can offer dedicated resources and ensure consistent performance.

Shared Web Hosting can lead to errors

December 31, 2013, Outage:

On December 31, 2013, a major outage hit EIG, affecting its popular hosting services like HostGator and BlueHost. This incident left thousands of websites inaccessible for several hours, portraying a real-time scenario of the risks associated with shared hosting. The outage started before 10 a.m. EST and continued well into the afternoon, with no estimated time of resolution even by 4:15 p.m. The official Twitter accounts of BlueHost and HostGator initially sent out messages suggesting unawareness of the outage, but later acknowledged the issue and alerted users that they were working to address it. However, the damage was already done. Frustrated customers took to Twitter, expressing their discontent and even threatening to cancel their accounts.

This was not a standalone incident, as it was at least the second major outage EIG customers endured in 2013. The outage not only disrupted online services but also tainted the reputation of the hosting companies involved, showcasing the potential business risks of using shared hosting services. [Related Article]

Other Notable Outages:

  • In 2014, EIG experienced three more significant outages on April 16, May 19, and October 29, highlighting a pattern of instability within shared hosting environments​. [Reference]
  • Another substantial outage occurred at the onset of the New Year, impacting EIG’s entire server system in Provo, Utah, leaving millions of websites down from December 31, 2013, to January 2, 2014​. [Reference]
  • On August 2, 2013, several EIG web hosts experienced unexpected downtime, affecting servers and phone services for HostGator, BlueHost, JustHost, and HostMonster​. [Reference]

These incidents underline the inherent vulnerabilities of shared hosting, particularly when a single point of failure can lead to widespread service disruptions. The crowded nature of shared hosting servers and the shared resources can indeed leave websites unable to function or handle sudden surges of traffic, exemplifying the vital considerations small business owners must make when choosing a hosting solution.

These case studies reflect the potential challenges and risks associated with opting for low-cost shared hosting solutions, especially for small business owners who may experience lost website traffic or sales during such outages. The presented outages from EIG’s history offer a glimpse into the possible repercussions on not only website uptime but also customer satisfaction and business reputation.

The Synchronized Hosting Difference

At Synchronized Hosting, we offer a fundamentally different approach. Our dedicated Virtual Private Servers (VPS) ensure that your website has its own allocated resources, safeguarding it from the pitfalls of shared hosting. With routine updates, comprehensive backups, and Synchronized Failover, we ensure your website remains robust, secure, and ready to handle your business needs.

Our dedicated VPS hosting not only offers better performance and reliability but also comes with the assurance of seamless service, even during unexpected traffic surges. It’s an investment that pays off by securing your online assets, retaining your customer base, and fostering growth.

Ready to experience a hosting service that prioritizes your business’s needs? Contact Synchronized Hosting today. Let us show you how our dedicated VPS hosting can provide a secure, reliable, and scalable solution for your online presence. It’s not just about hosting; it’s about creating a stable foundation for your business’s digital journey.


Shared web hosting may seem like a cost-effective solution at first glance, but the hidden costs can quickly pile up. Slow website speeds, unreliable performance, and the potential loss of sales are serious concerns. As a small business owner, aligning with a hosting service like Synchronized Hosting, that values the integrity and performance of your online platform, is a wise long-term decision.