Virtual private server hosting (VPS) is a type of web hosting that entails dividing a physical server into multiple virtual compartments and assigning server software to each so that every unit can function independently. In other words, every website or hosting account on a VPS plan gets independent server resources such as CPU, disk space, RAM, etc. despite being on one machine.   

On a shared hosting server, there’s no dedicated space for a website. The hosted sites consume server resources as and when they become available. With VPS hosting, the website gets modest but dedicated server resources, lending privacy to each hosted account. In short, VPS hosting is a cross between shared and dedicated hosting. Though shared hosting at heart, it offers more control and power similar to dedicated hosting.

Difference Between Cloud Hosting and VPS

Most people confuse cloud hosting with VPS since the latter has the word “virtual” in it. Basically, a VPS can be categorized as conventional and cloud-based. A conventional VPS, as aforementioned, takes up one server, slices it up into multiple units and assigns each slice to one hosting account. A VPS hosting account may have one or more than one site on roll.

A cloud-based VPS, on the other hand, functions the same way too. But the major difference is that there are multiple physical servers at play. These are connected via the Internet and made to work like one powerful virtual server. This virtual server is divided, which means a lot more slices and the ability to accommodate more hosting accounts.


  • Improved Performance

Though the websites hosted on a VPS are sharing a server, they still get their dedicated CPU, RAM, disk space, etc., which means much better performance and uptime numbers. If a website on the server exhausts its allocated server resources, it would not be able to eat into other sites’ unused resources.

  • Cost-Effective

As aforementioned, VPS is a much cheaper option compared to dedicated or colocation hosting. Those who need the reliability of a dedicated server but do not have the budget would find VPS hosting extremely convenient.

  • Security

Since a portion of a physical server is assigned to a particular site or hosting account, each site gets its own unique IP address (not always the case, though). As a result, a particular site’s spammy tricks won’t hurt the performance and credibility of other websites on the server.

  • Seamless and Quick Upgrades

Most websites start with shared hosting, but with growth, their server requirements increase. Upgrading is much quicker and seamless with VPS. For instance, upgrading RAM just entails a simple button-click. Such upgrades with dedicated hosting would entail someone physically installing fresh RAM into the server. This may take considerably more time.

  • Multiple Domains

More than one website can be hosted using a single VPS account. Most shared hosting plans also permit multiple-domain hosting. But due to shared hosting’s hardware constraints, the sites won’t get necessary resources in the entirety and their performance, as a result, would get hit. VPS plans allow the ability to host multiple domains sans performance dips.


  • Expensive

VPS hosting is slightly more expensive than shared hosting – the actual difference in their costs could vary across service providers. This makes the jump from shared hosting to VPS hosting fairly substantial. Moreover, certain additional services could add to VPS hosting’s costs such as server and data backups, dedicated IP address, etc.

  • Not Dedicated Hosting

VPS hosting may look and function like dedicated hosting, but it’s not really the case. It’s still a kind of shared hosting. As a result, the resources on offer are fairly limited compared to dedicated hosting. This explains why the popular sites on the Internet have dedicated servers at base and not VPS hosting.

When is VPS Hosting Ideal?

VPS hosting is ideal for websites that see substantial incoming traffic that isn’t massive enough to warrant a dedicated server. In fact, most people who think they need a dedicated server would do just fine with VPS. And a VPS is much cheaper compared to dedicated hosting. Long story short, VPS hosting is like a trial space for dedicated hosting. People who would like to have a dedicated server (of sorts) but are unsure about the technological knowledge required can use VPS hosting as a starting point.