Speaking from long experience in the hosting business, performance can vary a lot because not all providers use the same server setup or resource allocation. Some companies run their shared hosting on low-end hardware to increase profit, while others use mid-range or high-end servers to offer better performance. Both approaches can work, but the real issue is over-selling. Many providers sell more resources than the server can realistically handle, which eventually leads to slow speeds and unstable performance.
In my own company, I follow a very clear rule: don’t over-sell resources. I keep the resource limits strict and well-balanced so one client cannot affect another. This often means lower profit, but the performance and reliability are much better. From my perspective, this is what sets a good provider apart from the rest.
So when choosing between managed VPS and shared hosting across multiple websites, you should focus less on the “type” of hosting and more on how the provider manages their resources. A well-managed shared hosting environment can outperform a badly managed VPS and the opposite is also true.