Domains & Hosting
Shared vs VPS vs Cloud Hosting (AU): How to Choose, When to Upgrade, and What It Costs
By Dominik Kowalski · Updated 21 Aug 2025 · ~12–14 min read
Purpose: Help AU businesses choose hosting that fits their stage—without overpaying or getting stuck with slow, fragile infrastructure.
Summary table
| Type | Best for | Typical AU cost (AUD/mo) | Pros | Cons |
|---|---|---|---|---|
| Shared | Pre‑launch, low‑traffic brochure sites | $5–$20 | Cheapest, quick setup | Noisy neighbours, resource limits, variable TTFB |
| VPS | Growing SMB, WooCommerce, multi‑site | $30–$120 | Dedicated resources, better stability, root/control | Needs upkeep or managed provider, scaling is manual |
| Cloud | APIs, regional scale, strict SLOs | $60–$300+ (usage‑based) | Autoscaling, global edges, infra as code | Complexity, cost surprises without guardrails |
Rule of thumb: Start simple, then upgrade when the data says so (TTFB, errors, CPU throttling). Don’t pay for cloud complexity until you need it.
How to choose: decision flow
- Audience & latency: If most users are in AU, prefer AU‑hosted plans or a CDN with AU POPs.
- Traffic & stack: Static site or light CMS? Shared is fine. Busy WooCommerce or plugins galore? Go VPS.
- Risk tolerance: If downtime is damaging, choose managed VPS or cloud with autoscaling.
- Ops capability: No in‑house ops? Managed VPS beats DIY cloud for most SMBs.
Still unsure? Run a 30‑day trial and monitor real user metrics (CrUX: LCP/INP) before committing.
AU‑specific considerations
- Location vs CDN: Server location isn’t a ranking factor, but latency matters. Use AU servers or a CDN with AU edges.
- Data residency: Some industries prefer data kept in Australia. Confirm with your provider.
- Support windows: Local time‑zone support reduces outage duration during business hours.
For technical bases, see Core Web Vitals and Google SEO guidelines.
When to upgrade (evidence‑based)
- TTFB > 600ms across AU traffic despite basic optimisations.
- 5xx errors during promotions or traffic spikes.
- CPU/RAM throttling warnings from your host.
- Security & patching lag you can’t keep up with.
If 2+ apply, plan a VPS. For international growth or strict SLAs, evaluate cloud.
Migration checklist (low‑risk)
- Spin up target server (VPS/cloud), match PHP/Node versions and extensions.
- Clone site to staging; test forms, logins, and payment flows.
- Enable server‑level caching + CDN; compress images (AVIF/WebP).
- Lower DNS TTL to 300s at least 24h beforehand.
- Migrate during a low‑traffic window; switch DNS.
- Keep old server for 7 days as a rollback.
Cost model (simple and honest)
Plan for renewal rates, not just promos. Approximate monthly costs in AUD:
- Shared: $5–$20
- Managed VPS: $60–$120 (includes backups, updates, panel)
- Cloud (small app/site): $60–$300+ depending on egress and scaling
Re‑price quarterly. If spend creeps without performance gains, tune or downgrade.
Recommended next steps
- Compare plans: Shared vs VPS vs Cloud (bookmark this guide)
- Prevent slowdowns: Top 5 Hosting Mistakes
- AU latency factors: Does Hosting Location Matter for SEO in Australia?
Need help deciding? For a quick review of your stack and upgrade path, talk to our team at Dominik Digital Marketing. We prioritise simple wins and safe rollouts for AU businesses.