Dedicated vs. Shared Internet: What Business Owners Need to Know
As of 2024, nearly 30% of all business is conducted online. This number has steadily grown over the years, meaning that any company that isn't online is leaving money on the table.
But it isn't enough to be online; companies need internet that meets their needs. These entities tend to have one of two choices: residential or business internet providers. To find out which is best for you, read on.
What is dedicated internet?
Dedicated internet access, or DIA, is an exclusive connection between your business and the internet. DIA allocates a fixed amount of bandwidth that is solely for private business use and is not shared with anyone.
Here are some of the key features:
- Guaranteed bandwidth: Receive the exact bandwidth you pay for without fluctuations in speeds due to other users' activities.
- Symmetrical speeds: Business users can have equal upload and download speeds, which is important for video conferencing and cloud-based features.
- Enhanced security: A private connection that reduces exposure to external threats, as your connection isn't shared with anyone.
- Service level agreements (SLAs): These guarantee that your internet will stay up, and you often receive a discount or compensation if it doesn't
For dedicated internet customers, the two key features worth noting are the guaranteed bandwidth and enhanced security. Symmetrical speeds and service level agreements are still typically part of the package, but these are necessary for the internet to be dedicated.
What is shared internet?
Shared Internet Access is a service typically for residential customers where multiple users share the same bandwidth.
Here are the key features of shared internet:
- Cheaper: Distributing the cost of bandwidth among multiple users makes the service more affordable than dedicated options.
- Variable speeds: Because bandwidth is shared, internet speeds are more likely to fluctuate, especially when multiple users are on at once.
- Asymmetrical speeds: Shared internet providers don't feel the need to match upload and download speeds, making upload speeds much slower.
Fewer business users tend to rely on shared internet service because it lacks the same reliability. However, this model is common for residential customers because they have fewer needs. While many residential customers would prefer the reliability of dedicated internet, most wouldn't be willing to pay the extra cost.
Dedicated vs. shared internet: Which should I choose?
While everything you see about dedicated internet might tell you to pick it over the shared option, that's not the case. For many residential customers and some companies, dedicated internet is unnecessary. If you’re unsure which plan matches your needs, try our how much speed do you need quiz to estimate the ideal bandwidth for your setup.
Why you should choose dedicated internet
Dedicated internet is best for organizations that rely heavily on the internet or store sensitive data.
Guaranteed bandwidth connections are more reliable than shared bandwidth connections. Losing your internet speed when employees need it can be frustrating and lead to lost productivity and opportunities. Companies that host their own websites, for example, will lose numerous customers if the web page loads slowly.
Greater security is vital for organizations that rely on sensitive customer data. Healthcare facilities, for example, would be much more susceptible to cyberattacks on shared connections. Regular business segments, such as involved sales teams, might also be unwittingly exposing customer information on shared connections.
You might also pick dedicated internet if you have a complex setup process. Larger organizations with multiple offices or unique security needs often need custom support. While some of these organizations have a robust IT workforce, customizable service can often save them time and money needed to do this themselves. Third parties who specialize in internet installation can do it better.
Why you should choose shared internet
Shared internet is best for regular people and those who work from home. However, it is also fine for organizations that rely less on the internet.
Many households and small businesses can function effectively on a shared internet connection, especially if their online activities do not require extensive bandwidth. For instance, tasks such as browsing the web, streaming music, and configuring conference calls typically do not demand a dedicated connection. Here are several reasons why shared internet might be the right choice for you:
One of the most compelling reasons to opt for shared internet is the cost. Shared connections are often considerably cheaper than dedicated options. This lower price point makes shared internet more appealing for families on a budget or small businesses that are just starting out. You can enjoy sufficient internet access without breaking the bank, allowing you to allocate funds to other critical areas of your household or business.
For many users, shared internet plans offer enough speed to meet everyday demands. When the household or business comprises users who mainly engage in activities such as emailing, browsing social media, or watching movies occasionally, a shared connection can provide adequate performance.
Conclusion: Making the Right Choice for Your Internet Needs
Choosing between shared and dedicated internet ultimately comes down to your specific requirements and priorities. If your business demands reliable, high-speed connectivity with enhanced security, dedicated internet is likely the best fit. You can also check your current performance instantly using our internet speed test to see how your network measures up before upgrading. On the other hand, shared internet can be a cost-effective and practical option for smaller operations or those with less intensive internet needs. If you're interested in seeing which internet service providers are available, use our internet search by zip code or by address tools.