← All posts

Hosting & Security

What Is Shared Hosting and Why Does It Cause Problems?

20 May 2026 By Nathan Constance

Shared hosting is the entry-level option for most website owners. It's inexpensive, easy to set up, and adequate for very low-traffic sites. But it's also the source of a lot of the hosting problems small businesses experience.

What shared hosting means

On a shared hosting server, hundreds — sometimes thousands — of websites all share the same physical hardware and the same pool of resources: processing power, memory, storage, and bandwidth. You get a portion of that server for your site.

The cost is low because those resources are divided among many customers. The providers make their margins by fitting as many customers as possible onto each server.

Why it causes problems

Resource competition: When another site on the server gets a traffic spike or runs a resource-heavy process, it can drag performance down for everyone else on that server. Your site slows down or becomes temporarily unavailable because of something entirely outside your control.

No resource guarantees: Shared hosting doesn't guarantee your site a minimum allocation of CPU or memory. What's advertised as "unlimited" typically means "however much you get after everyone else takes their share."

Security risks from neighbours: If another site on the same server is compromised, there's a risk — depending on server configuration — that it could affect others. A well-managed host mitigates this, but budget shared hosting often doesn't have the best isolation.

Limited control: You can't optimise server configuration, implement custom caching, or adjust settings that affect performance.

What the alternative looks like

Managed hosting with proper resource allocation — as we provide through Krystal — means your site's resources aren't in competition with everyone else on a shared server. The infrastructure is better suited to running a reliable business website.

Read more about managed hosting or find out why choosing the right host matters for your rankings.

Ready to grow your business online?

Get a free website plan with no commitment.

Get your free plan →