Why should you upgrade to a VPS or Dedicated Server? This may have to do with the type of site you have. If you have a lot of photos and videos that are password protected, this may be against your host’s rules for shared accounts which often prohibit file storage. Or you have a lot of site visitors, the metaphorical guests in your apartment, and your account may start getting crowded as those guests start clogging up the “hallways” otherwise known as CPU capacity. Another reason is to have full control over the configuration of your server, if you own a house you can make modifications you may not be allowed to make in an apartment or townhome.
If you're not sure of the type of hosting your business needs, you might want to start small, with shared Web hosting. You can always graduate to a more robust, feature-rich package of, say, VPS hosting or even dedicated hosting in the future. Unfortunately, some hosts don't offer all hosting types. Consider how much you expect to grow your website, and how soon, before you commit to anything longer than a one-year plan. It's worth spending the time up front to make sure that the host you select with is able to provide the growth you envision for your site, as switching web hosting providers midstream is not a trivial undertaking.
Many services offer so-called unlimited or unmetered service for whatever amount of bandwidth, disk storage and sites you use. It's important to understand that most terms of service actually do limit the definition of "unlimited" to what's considered reasonable use. The bottom line is simple: if you're building a pretty basic website, unlimited means you don't need to worry. But if you're trying to do something excessive (or illegal, immoral or fattening), the fine print in the terms of service will trigger, and you'll either be asked to spend more or go elsewhere.
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