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Infrastructure

Hosting Options

10 min readLast reviewed: March 2026

Where your application lives matters. Hosting choices affect cost, reliability, developer experience, and how your application scales. Your options range from shared hosting providers to managed platforms to bare metal servers in your own data center.

The Hosting Spectrum

The hosting landscape exists on a spectrum from "managed for you" to "you manage everything." On one end, platform-as-a-service (PaaS) handles nearly all infrastructure concerns—you deploy code and they handle servers, scaling, backups. On the other end, bare metal requires you to manage networking, security, operating systems, everything.

Where you sit on this spectrum depends on team size, budget, operational expertise, and application requirements. A startup typically doesn't have a DevOps team, so managed platforms save months of work. A large company with dedicated infrastructure engineers might run Kubernetes on bare metal for cost efficiency at scale.

Shared Hosting

Shared hosting puts your application on a server alongside dozens or hundreds of other customers' applications. You get a cPanel control panel, a database, FTP access, and an email account. It's cheap—often under $10/month.

The tradeoff: shared resources. If another customer's application goes viral and consumes all CPU, your site slows down. You have limited control over the environment. You can't install custom software. Scaling is difficult. Shared hosting is suitable for static websites, simple blogs, low-traffic WordPress sites—not modern web applications.

Many developers avoid shared hosting because it's restrictive and performance is unpredictable. If you're building anything beyond a static site, shared hosting usually disappoints.

Virtual Private Servers (VPS)

A VPS gives you a virtual machine on a shared physical server. Unlike shared hosting, you get your own operating system, your own IP address, and root access. You control everything: software, configurations, security. A VPS costs $5-50/month depending on resources.

With a VPS, you're responsible for system administration: installing a web server, managing databases, applying security patches, handling backups, configuring firewalls. This is powerful if you know what you're doing, but dangerous if you don't. A misconfigured VPS can be hacked.

VPS works well if you have server administration knowledge. Many small agencies and startups run on VPS. But if you don't have operations expertise, you'll spend time fighting servers instead of building features. Popular VPS providers: Linode, DigitalOcean, Vultr.

Dedicated Servers

Dedicated servers mean you rent an entire physical machine. All resources are yours. No noisy neighbors. Guaranteed performance. They cost $100-500+/month.

Most modern applications don't need dedicated servers. A VPS provides adequate isolation. Dedicated servers made sense in the 1990s when virtualization didn't exist. Today they're used for high-frequency trading systems, massive databases, or applications with extreme performance requirements.

Unless you have a specific reason, skip dedicated servers. Cloud instances provide better flexibility at lower cost.

Cloud Providers: AWS, Google Cloud, Azure

Cloud providers rent computing resources on demand. Want 100 servers for 1 hour, then 10? That's possible. Pay only for what you use. The major players are Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure.

AWS is the market leader with the broadest service catalog. EC2 (virtual machines), S3 (storage), RDS (databases), Lambda (serverless functions). AWS is powerful but complex—the documentation is vast and learning the service ecosystem takes time.

Google Cloud is known for data processing and machine learning services. If you're building a data-heavy application, GCP might be ideal. The interface is slightly more intuitive than AWS.

Azure is Microsoft's offering. Strong integration with Windows and enterprise tools. Often the default for companies already invested in Microsoft products.

All three offer similar core services and pricing. The "best" choice depends on existing relationships and specific service needs. Most applications work equally well on any.

Note
Cloud cost surprise: Cloud providers charge for data transfer out of their network. If you send 10TB of data to external APIs monthly, you'll see charges. Understand your data flow before committing.

Platform-as-a-Service (PaaS)

PaaS platforms like Vercel, Railway, Render, and Fly.io abstract away server management. You push code, they deploy it. They handle scaling, databases, backups, SSL certificates. You focus on application code.

Vercel specializes in Next.js and edge functions. Deploy with one command. Edge functions run your code on Cloudflare's network worldwide. Ideal for Next.js applications. Cost is low for small projects, can become expensive at scale.

Railway is simple and affordable. Deploy any application (Node.js, Python, Go, etc.). Pricing is transparent and usually cheap for small-to-medium projects. Great for developers who want simplicity.

Render has free tier hosting for educational purposes. Paid plans are competitive. Good for startups and hobbyist projects.

Heroku pioneered the PaaS model. You push to Heroku and it deploys. Once generous, now more expensive than competitors. Still widely used in enterprises.

Fly.io focuses on deploying Docker containers worldwide with fast performance. Good if you need global distribution.

The PaaS tradeoff: convenience and speed versus cost at scale and vendor lock-in. You're dependent on the platform. If they change pricing or shut down, you need to migrate. Most successful startups use PaaS initially, then migrate to cloud infrastructure as they scale and have operations expertise.

Serverless Hosting

Serverless (AWS Lambda, Google Cloud Functions, Vercel Edge Functions) runs your code only when it's invoked. You pay per execution, not per hour. Ideal for event-driven workloads—webhooks, image processing, API endpoints with variable traffic.

Serverless functions are stateless and short-lived (usually 15 minutes max). Storing state requires external databases. Long-running processes don't fit well. But for APIs and background jobs, serverless is cost-effective.

How to Choose

Ask yourself:

  • Team size and expertise: Do you have operations engineers? Start with PaaS. As you scale, migrate to cloud infrastructure.
  • Traffic volume: Low traffic? PaaS or serverless. Predictable high traffic? VPS or cloud instances. Highly variable traffic? Serverless or auto-scaling cloud.
  • Budget: Startup? PaaS or cloud. Enterprise? Cloud with reserved instances for cost savings.
  • Compliance: HIPAA? SOC 2? Enterprise clouds (AWS, Azure) have certifications. Smaller platforms may not.
  • Latency requirements: Global users? CDN or edge computing. Local users? Single region is fine.
  • Lock-in tolerance: Can you migrate easily if needed? Cloud infrastructure is portable. PaaS is harder to leave.
Tip
Recommendation for most startups: Start with a managed platform (Vercel, Railway, Render) or PaaS. You'll ship faster with fewer ops headaches. When you reach a scale where costs are prohibitive or you need specific customizations, migrate to cloud infrastructure with the expertise you've built.

Databases and Hosting

Your hosting choice affects your database options. Managed platforms include databases (often PostgreSQL or MongoDB). Cloud providers offer managed database services (RDS, Cloud SQL) that handle backups, scaling, patches.

If you self-host a database on your own server, you're responsible for backups, replication, security, upgrades. Many teams neglect this and lose data. Managed databases cost more but provide peace of mind.

Specialized database services (PlanetScale for MySQL, Neon for PostgreSQL, Supabase for PostgreSQL) are database-as-a-service platforms. They handle scaling, backups, high availability. Excellent choice for most applications.

CDNs and Edge Hosting

A Content Delivery Network (CDN) caches your content on servers worldwide. When a user in Sydney requests your image, they get it from Sydney servers, not your origin server. This is dramatically faster.

Every hosting provider recommends pairing with a CDN. Cloudflare, AWS CloudFront, Google Cloud CDN all work. For most applications, CDN cost is negligible compared to the speed improvement.

Edge computing takes this further—your code runs on the CDN itself. Vercel Edge Functions and Cloudflare Workers are examples. This reduces latency for compute-heavy operations.

Common Hosting Mistakes

Underestimating operations cost. Self-managed infrastructure seems cheap until you account for on-call rotations, incident response, and the salary of the person managing it. Don't minimize these costs.

Not testing failure scenarios. What happens if your database goes down? Your server crashes? Do you have backups? Have you tested restoring from backups? Many teams discover the answer in production.

Ignoring compliance early. If your application might need HIPAA or SOC 2 later, choose a cloud provider that supports those certifications now. Adding it later is expensive.

Choosing based on cost alone. The cheapest hosting isn't always the best value. A $5/month VPS that crashes weekly costs more in lost productivity than a $50/month managed platform that works.

Comparison of Popular Options

NameProsConsBestFor
Shared HostingCheap ($5-15/mo), easy to get started, no server knowledge neededLimited control, unpredictable performance, not suitable for modern appsStatic websites, blogs, WordPress sites
VPS (DigitalOcean, Linode)Full control, affordable ($6-50/mo), reliable, good documentationYou manage everything, requires admin knowledge, on-call responsibilityDevelopers comfortable with servers, small-medium projects
Cloud (AWS, GCP, Azure)Scalable, reliable, global infrastructure, auto-scalingComplex to learn, cost can spiral, steeper learning curveMedium to large companies, high-traffic apps, specialized needs
PaaS (Vercel, Railway, Render)Easiest to use, fast deployment, minimal ops, good for startupsVendor lock-in, more expensive at scale, limited customizationStartups, small teams, projects valuing speed over flexibility
Serverless (Lambda, Cloud Functions)Pay-per-use, automatic scaling, no servers to manageCold starts, limited execution time, complex for stateful appsAPIs, webhooks, event-driven workloads, variable traffic

The Reality

Most successful startups use a managed platform initially. They deploy fast, iterate quickly, and worry less about infrastructure. As they grow and engineer hiring enables building operational expertise, they migrate to cloud infrastructure for cost and flexibility.

There's no universally correct choice. The "right" answer depends on your specific situation—team, budget, traffic, compliance, growth expectations. Choose based on where you are now, not where you might be in 5 years. You can always migrate later.