How Much Does It Cost To Host A Server?

There is a time in every business life cycle to own a server host. This can be a result of an increase in traffic, greater uptime and reliability, and the need to run many business applications. In this situation, learning about the cost of a server host becomes important.

According to research,  there were over 1.21 billion hostnames registered online in 2021. This means that having your own host server may be the best option if your business has grown considerably.

In this article, we will explain how it cost to host a server. Read all about it here.

What is a Server Host?

A server is a computer program or device that provides a service to another computer program and its user also referred to as the client. In a data center, the physical computer the program server runs on is referred to as a server.

The main function of the server is to access, hold and transfer all files and data from other computer machines over the computer network. Local networks are used for making connections with multiple computers, in small-scale organizations.

Hosting a server entails rendering an Information Technology service. It is done by a cloud service provider with the responsibility of providing remote access to off-premises virtual or physical servers and resources for a monthly subscription or usage-based price.

Servers provide Information technology teams with the provision and start using applications and data servers without incurring the up-front cost, delays, and labor of purchasing, setting up, managing, and maintaining physical server hardware themselves, on-site.

Every website one visits may be a collection of files on a foreign computer. The computers used to host websites are called servers.

Once one purchases hosting, the purchaser is paying for a slice of a server’s space.

Different and more powerful servers (that can handle more traffic) command higher prices and this is among the things you have to take in answering the question: how much does a server cost.

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Types of Server Hosting 

The following include the foremost and popular hosting types and what makes them different and peculiar: 

  • shared hosting
  • virtual private server
  • WordPress hosting
  • e-commerce hosting and 
  • dedicated server.

Shared hosting

With this sort of plan, the website shares a server and its resources with other users.

Shared web hosting is the basic package that services offer. The website sits on the same server along with many other websites, which leads to sharing the server, and any other resources, such as memory or CPU.

Shared hosting is good for basic website needs such as email sending, file sharing, and simple-level eCommerce sites.

Shared hosting is by far the cheapest and therefore smartest option for smaller or startup businesses.

Virtual Private Server (VPS)

Employing the services of a VPS, one gets dedicated resources and an environment all to themselves– although a physical server can host multiple VPSs.

A virtual private server is for a user’s direct purpose, more than and as compared to a shared server.

A user may be sharing an actual server, but the service creates a virtual server of the user’s very own.

That means all the resources are the users alone, from memory storage to processing power and beyond.

A virtual private server is a safer and much more reliable option that keeps your site separate from the others while still maintaining affordability.

WordPress hosting

This sort of plan is customized for WordPress users. People who pay for these sometimes get access to perks like free themes and plugins. This is a shared hosting service that caters to a more specific and specialized client base. 

The hosting servers themselves are peculiar and optimized differently, and have features that are particularly attractive and desirable to WordPress performance such as faster load time, pre-installation, security features that work specifically with WordPress, and WordPress updates.

WordPress hosting is useful for businesses that have websites created on WordPress.

eCommerce hosting

With eCommerce hosting, a user gets plans built for online stores. In many cases, a user will get help fixing WooCommerce or whichever eCommerce system they employ.

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Dedicated server

With this sort of plan, a user buys a whole server for themselves, which usually makes it the foremost expensive option.

Dedicated hosting is already on another strata and level. In addition to a user getting their own server, dedicated hosting allows for total and full control over the server. 

That means a user will have full administrative access to and can set things up the way they like it. In this type of package, dedicated hosting comes with a royal suite of features that may not be necessary for all types of businesses.

Categorization of Servers

Servers are categorized according to their use, and there are different uses for a server which is among the information required in answering the question: how much does a server cost.

Some of the common uses are: 

For Storage 

Servers are primarily used for storage.   

A user may need a server to hold their files. For small business owners who have around 20 people using the server, this may cost about $5,000 to $10,000.

Servers For large businesses that require a lot of hard drive space for records or archival, video editing, and 3D design, can become much more expensive with prices as high as $20,000.  

For Virtual Machines   

Servers are used for setting up virtual machines. For this use, multiple virtual machines allow users to have one server running different business applications like active directory and email.   

The cost of this use depends on how many virtual servers the user desires and needs to run, and it’s tough to give a range.  

The more virtual servers that need to be run, the more expensive the cost.  

For Remote Desktops 

Another use of servers is for remote desktops, and this is the same thing as having one’s own private cloud that one can remote into.   

Servers used for remote desktops often cost much more than your typical server, and it allows multiple users to run their own instance of Windows.

For a server that will be used by about 20-25 users, it will cost around $15-$20,000 per server. 

For Specialized Tasks 

In some peculiar situations or instances, business owners might consider purchasing a server for a specific use case like a particular business application.

An example of this would be a server dedicated to accounting tasks.   

The cost of these kinds of servers will depend on the requirements of the services the businesses run on these servers.  

In answering the question, how much does a server cost, it is dependent on several factors such as:

  • What will the server be used for? 
  • How many people will be connected to, accessing, and using the server? 
  • The specific components the server will need based on the use case?  

These factors will determine how much the server will cost as they are capable of causing the price of the server to go up or down.

There are five main components of a server which is among the questions to answer when talking about how much a server cost. These components include 

  • Form factor or the case, 
  • Processor, 
  • RAM, 
  • Storage or hard drive and 
  • Power supplies.
  • Form factor or the case

This is the case in which the server will be contained. This is determined by the space and number of servers in use.  

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The processor is one of the most critical components of a server. The processor is also referred to as the central processing unit (CPU). If the motherboard is the computer’s heart, the processor or central processing unit is its brain.

When it comes to performance, the processor or central processing unit is often the first component that comes to mind.


RAM (Random Access Memory) allows multiple virtual servers to run or more people to use the same server simultaneously.

Storage or hard drive

This refers to the storage space for the server for storing data.

Power supplies

This is an electrical device that supplies electric power to the server.

Server Hosting Prices

Server Hosting prices vary depending on the hosting plan one chooses and they include:

Shared Hosting

Shared hosting prices range from $2.49 – $15 per month.  Thisis the choice most users and little businesses start their web hosting journey with. 

Among highly rated shared hosting companies, InMotion offers the most cost-effective shared hosting plan called ‘Core’ starting at just $2.29/month (an exclusive plan specifically for Website Builder Expert users!).

DreamHost comes next with $2.59, while Bluehost and A2 Hosting’s top-tier shared hosting plans are both at the pricer end, costing $13.95/month and $14.99/month respectively.

VPS Hosting

VPS hosting prices range from $20 – $80 per month. Out of the top five VPS hosting providers, InMotion offers the most cost-effective VPS hosting plan at $17.99/month – this is often an exclusive discounted price only for subscribed readers to enjoy. 

Bluehost and HostGator follow close behind InMotion at $18.99 and $19.95/month each for their entry-level VPS plans, while iPage offers the priciest top-tier VPS plan, at $79.99/month. On average Bluehost is the cheapest of the three plans.

Dedicated Hosting

Dedicated hosting plans range from $80 – $300 per month.

Users use this hosting service when there is a need to buy their own server due to traffic getting pretty serious, and needs outgrowing the lower-tiered hosting plans.

Dedicated hosting is the most variably priced kind. 

Of our top five dedicated hosting providers, the most cost-effective plan comes from Bluehost at $79.99/month. Mid-tier plans are priced between $99.99/month and $207/month.

Similarly, the most expensive plan is A2 Hosting’s $290.49/month top tier plan.

Cloud Hosting

Cloud Hosting prices range from $4.50 – $240 per month. 

Users switch to cloud hosting when downtime could prove fatal to users’ business. The simplest cloud hosting providers confirm there’s always a server available, able to provide your website to the planet. Cloud hosting is comparatively inexpensive. 

Of the top five providers, the foremost affordable plan comes from DreamHost at just $4.50/month.

There are often quite variations in what one can get with a cloud hosting plan, and this is often reflected in the cost. HostGator’s costliest cloud hosting plan costs just $9.95/month, while SiteGround is $240/month.

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WordPress Hosting

WordPress hosting prices range from $4.99 – $830 per month. These plans are for those that need dedicated and specialized services designed only for WordPress sites and blogs.

Again, there are often quite differences in what you get from one WordPress hosting to another, and this is often reflected in the price. 

Of our top five WordPress hosting providers, InMotion actually offers the most cost-effective plan at $4.99/month.

WPEngine’s top-tier plan is the priciest at $828/month. It’s worth noting these prices reflect managed WordPress plans, instead of basic (and cheaper) shared WordPress hosting.

Frequently Asked Questions (FAQs) on How Much Does It Cost To Host A Server?

Dedicated server hosting is the most expensive.

Shared server hosting is by far the cheapest type of hosting

Shared server hosting is the idea and smartest choice for small businesses and startups

Dedicated server hosting is the best server hosting for large and big businesses.

Yes, businesses can purchase a server for a specific use case like a particular business application. An example of this would be a server dedicated to account keeping.

In Conclusion

The coronavirus pandemic and its aftermath have caused a global chip shortage, and this has caused baseline prices of servers and hosting to go up drastically.

Other factors such as data storage needs, server use, number of people accessing the server, and specific server components are capable of determining how a server and server hosting costs.

Server hosting types include shared hosting, virtual private server, WordPress hosting, e-commerce hosting, and dedicated server.

In answering the question: how much does a server cost, you are to note that there exists a wide range of pricing options, with hosting costing from as meager as $2.49 to more than $700 per month.



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