What makes people opt for dedicated hosting instead of shared hosting? Again, the most important criterion is money. If you can afford a costly solution like this, go ahead. However, don't just simply go ahead without weighting the pros and cons of dedicated hosting. Shared hosting is a solution where you are allocated a portion of the power, storage and bandwidth of a dedicated server hosting. Smaller websites require only a small percentage of resources; therefore this service suits a majority of clients who attract a good but not huge amount of web traffic.