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Once a website or CRM is built, one question remains: where will it run? It's often left to "the developers", yet it decides your site's speed, its downtime and the safety of your data. This article explains in plain language how to choose hosting for a business website and CRM: the three main options, which project suits which, what drives the cost, and what Uzbek law says about where data may be stored.
The three options in plain words
Shared hosting
Many websites run on one powerful server and share its resources. It's like renting a room in a shared flat: cheap, and the provider maintains the server. The downside is the "neighbours": if another site overloads the server, yours slows down too. Many plans also limit the software environment — usually PHP and MySQL, with no background processes or custom settings.
VPS (virtual private server)
A physical server is split into several independent virtual ones, and you get guaranteed CPU, memory and disk. It's your own flat: install any software and configure it as you like. But the responsibility is yours too — system updates, security, backups and monitoring. Someone has to look after a VPS constantly: you, an employee or a contractor.
Cloud platforms
Managed services from large providers: servers, databases and file storage are separate services, and resources can be scaled up or down in minutes. You usually pay for what you actually use. The upside is flexibility and reliability; the downside is complex billing, where a misconfiguration can make costs jump.
What to choose for a website
A landing page or a small corporate site, especially on a ready-made CMS, usually runs fine on shared hosting. For a low-traffic site that is rarely updated, a VPS is an unnecessary expense.
An online store, a site with a large catalogue or a project built on modern frameworks (Next.js, Django, Laravel) is better off on a small VPS or a cloud platform, which offer the right software environment and guaranteed resources. When ordering a website, ask the developer early where and how it will run — the project's technology largely decides the hosting.
For a CRM and internal systems
With a CRM, inventory or order system, the question changes: the most valuable thing is the data. So three things matter more than speed: regular backups, access control, and a plan for quick recovery if the server stops.
In the cloud versions of off-the-shelf CRMs, the provider handles this and you pay a subscription. We compare the two approaches in off-the-shelf CRM or a custom one. A custom-built CRM system usually runs on its own VPS or cloud server. In that case, agree in the contract whose name the server is registered in and who is responsible for backups and updates.
Where data may be stored: what the law says
The previous version of Uzbekistan's Law "On Personal Data" required citizens' personal data to be stored on servers located in the country. Law No. ZRU-1125 of 26 March 2026 rewrote Article 27¹ of that law, effective 27 March 2026.
Under the new wording, only three categories must be stored in Uzbekistan: biometric data, genetic data, and data on users of telecom operators working in the country.
Other personal data may be stored and processed abroad if one of three conditions is met: the country is recognised as providing equal protection of personal data; the operator adopts and follows standard contractual clauses or binding corporate rules approved by the authorised body; or the operator complies with international standards from a list approved by that body. According to Kun.uz, on 29 July 2026 the Cabinet of Ministers approved such a list of 49 countries and territories, including the USA, Germany, the Netherlands and Finland.
In practice, a CRM or online-store database holding customers' names and phone numbers can be hosted on a foreign server, provided the law's conditions are met. But a time-tracking system that uses fingerprints or face recognition processes biometric data, so its database must stay in Uzbekistan.
This is not legal advice. Laws change, so check the current wording on lex.uz or consult a lawyer before launching.
Backups: the cheapest insurance
Hardware failure, a bad update, a hack or an accidental deletion — the remedy is the same: regular backups. A common rule is "3-2-1": at least three copies, on two different types of storage, one of them elsewhere (another server or another provider).
A practical minimum: an automatic daily database backup, stored outside the main server, and a test restore every few months. A backup you've never restored from is only a hope.
Provider backups are convenient but usually sit with the same provider: lose the account, and you may lose them too.
Uptime and speed
Providers promise reliability as uptime — the share of time the server is running. 99.9% sounds good, but it allows about 43 minutes of downtime a month; 99.5% allows more than 3.5 hours. Also check what compensation the provider offers if it misses the target.
Server location affects speed too: if your customers are in Uzbekistan, a closer server loads pages faster. Monitoring services can also check your site every few minutes and alert you if it goes down — before your customers notice.
What drives the cost
Resources. CPU, RAM and disk size. The disk type (SSD or NVMe) also affects speed.
Traffic. Some plans cap monthly traffic and charge extra for overage.
Extra services. Automatic backups, managed databases and attack protection are usually billed separately.
Administration. The most forgotten cost: a cheap VPS needs a specialist's time to set up and maintain.
Domain and SSL. The domain is paid yearly; an SSL certificate is free through Let's Encrypt.
So compare total cost, not the monthly price: a cheap server plus expensive administration can cost more than a managed solution.
Conclusion
Shared hosting suits a landing page or small corporate site; online stores and framework-based projects need a VPS or the cloud. For a CRM, data safety comes first: backups, access control and a recovery plan.
Since March 2026, most personal data may be stored abroad under conditions, but biometric data must stay in Uzbekistan. And compare total costs, not monthly prices.
See services and prices on our website development and CRM and business systems pages, or send your questions on Telegram: t.me/uproject_support.
FAQ
Does a simple website need a VPS?
Usually not. A VPS makes sense when the site needs a special software environment, traffic grows, or a bot and CRM must run alongside it.
Is it legal to host my site on a foreign server?
Since the amendments took effect on 27 March 2026, personal data other than biometric data, genetic data and telecom subscriber data may be stored abroad if one of the law's conditions is met. For a specific project, consult a lawyer.
My provider makes backups — isn't that enough?
It's a good start, but keep at least one more copy elsewhere and test restoring from it.
Can I switch hosting later?
Yes. The site and database move to a new server and the domain is pointed to it; with planning, customers barely notice. Just make sure you own the code, the data and the server accounts.