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What is VPS Hosting? Differences & Advantages Explained

VPS: What’s a Virtual Private Server?


VPS stands for “Virtual Private Server.” It is a virtual machine or container that acts like a separate server. These servers are created by splitting one larger physical server into smaller “virtual” parts and then renting those out to users. This type of virtual provisioning offers some separation that gives users more control, better security, and more resources to run websites faster.

Using a VPS is like having your very own piece of a server in a data center. You get special access to your chunk of disk space, memory, vCPUs (like the brain of the server), and software setup.

Read on to discover how virtual servers work, the advantages of VPS hosting, and why it’s the perfect choice for websites with higher resource demands.

What is a Virtual Private Server (VPS)?

A VPS, or Virtual Private Server, is a type of hosting that sits between shared hosting and dedicated servers. It uses special software called virtualization to split one physical server into smaller, separate parts. Each VPS works like its own private server, with its own storage, memory, and processing power. You also get full access to control the setup. This gives you many of the benefits of a dedicated server, but usually at a lower cost.

Virtual Private Server Pros and Cons

A VPS brings a balance of flexibility, performance, and control, but it’s not without its challenges. Let’s look at the benefits and drawbacks in detail.

Benefits of VPS Hosting

Greater Control and Customization

You can install custom software, change server configurations, and fully tailor your hosting environment. This makes VPS hosting ideal for businesses or developers who need more than a basic shared setup.

Scalable Resources

With dedicated CPU, RAM, and storage, your performance isn’t slowed by other users. You can also scale resources as your website grows, ensuring smooth operation during traffic spikes.

Improved Performance and Speed

Because your VPS resources are reserved for you, websites load faster and handle more visitors at once. This results in a better experience for your users, especially if you run an eCommerce store or media-heavy site.

Enhanced Security

Your virtual server is isolated from others on the same physical machine. This separation helps protect your site from vulnerabilities or hacks that might affect other customers on shared hosting.

Private Environment

Your VPS functions like its own dedicated server. You can test applications, host multiple websites, and run specialized software without interference from others.

Drawbacks of VPS Hosting

Technical Knowledge Required

If you choose a self-managed VPS, you’ll need the skills to handle system updates, security patches, and troubleshooting. Without this expertise, server management can become overwhelming.

Higher Cost Compared to Shared Hosting

While still more affordable than a dedicated server, VPS hosting is more expensive than shared hosting. For small projects with minimal needs, the cost may not be justified.

Limited Compared to Dedicated Servers

A VPS is powerful, but it still relies on shared hardware. For extremely resource-intensive applications, a dedicated server may be a better fit.

Potential Resource Contention

Even though VPS resources are allocated to you, the underlying physical server is still shared. If other VPS accounts consume more than expected, performance issues can occasionally occur.

Server Management Responsibilities

In unmanaged VPS plans, you are responsible for monitoring and maintaining the server. This can be a drawback for users who prefer a hands-off hosting experience.

VPS Pros and Cons Quick List

BenefitsDrawbacksGreater control and customization over your web server.Full control over server resources requires technical knowledge.Scalable resources that are not shared with other users.It costs more than a shared hosting environment.Offers better performance and speed.Limited resources compared to dedicated servers.Enhanced security compared to shared hosting.Potential resource contention with other VPS users.Provides an isolated server environment.It may require server management in a self-managed VPS environment.

How Does a VPS Work?

There are different techniques for virtualization, and a VPS works by taking an entire server (or, cloud hosting network), partitioning off individual “nodes”, and running discrete “containers” in those nodes. This is how a virtualized server delivers more power and control at a much more affordable cost than dedicated hosting.

The biggest benefit is that virtualized server resources are not shared with users on the same physical server.

You can host multiple websites on a virtual server with little to no sacrifice in speed and performance. This is ideal for managing many sites, or even providing your hosting service as a web hosting reseller.

The CPU of a server can also be split into separate virtual nodes known as virtual CPU or vCPU.

CPU vs vCPU

A Central Processing Unit, or CPU, is an actual chip on a server and is the primary “brain” of a computer that executes tasks and performs calculations. A Virtual Central Processing Unit, or vCPU, is when software is used to allocate or “share” the resources of that physical processor into different virtual machine instances.

So, the more vCPU cores you have the more processing power is available to compute data within your environment to handle workloads. For example, a virtual server with 8 vCPUs would perform a task using half the resources and time than one with 4 vCPUs.

InMotion Hosting’s VPS servers range from 4 to 16 vCPU cores.

In Shared server environments, your website “shares” all the resources, including the CPUs with all the accounts on the server.

What is VPS Hosting Infographic

Do I Need VPS Hosting?

If your website is running slower or you’re hitting limits with your shared hosting, you may need to switch to VPS-level hosting solutions.

Entry-level plans offer a big performance boost and are often only a bit more expensive than premium shared hosting.

Here are some signs to you need the switch to VPS hosting:

Your Website Has a Slow Load Time

As you add more content and media, your website can slow down. Shared hosting has limits, but a VPS provides dedicated resources to speed up your site and keep it running at its best.

If you need help understanding site speed, don’t worry, we’ve got you covered. 

You Have High Website Traffic (1,000’s of Visitors Daily)

Popular websites need to handle more visitors. Upgrading can manage higher traffic and allows you to upgrade resources. You can adjust as needed for traffic spikes.

You Have a Lot of Data To Backup

Backing up data requires a lot of CPU. A virtual server with NVMe SSDs and top-notch hardware helps with this. Likewise, you can save snapshots to your virtual machines (VM) as a single file for quick restoration.

You Run An Online Store 

To process payments, you need PCI compliance. Most shared hosting plans will fail because of their higher security risks.

Your Site Has Sensitive Data

If your site handles sensitive information, shared hosting isn’t secure enough. VPS hosting offers better security, protecting against attacks through shared IP addresses.

You Need Customization

Shared hosting limits customization. Managing file servers, streaming, or gaming requires dedicated memory and CPU. Hosting on a virtual dedicated server is better suited to handle the intense workloads and processes.

You’re Getting Frequent Server Errors

Errors like “Service Unavailable” or “503” often signifies your server is overloaded. Virtual private servers help prevent these issues by providing more resources.

Overage Costs Are Eating Up Your Budget

While InMotion Hosting doesn’t charge extra for exceeding limits, other hosting providers might. Virtual private servers help avoid overages by offering the power and speed you need.

If you are wondering when to upgrade, you may benefit from a stress test that can provide specific benchmark data to verify if you can handle requests promptly. This simulates a high amount of resource-intensive load on your server to see how it responds and recovers.

Common Use Cases for VPS Hosting

A VPS gives you flexibility and dedicated resources that shared hosting can’t provide. Because of this, it’s often the next step for businesses, developers, and creators who need more speed, security, and control. Below are some of the most popular ways VPS hosting is used today.

Hosting for Growing Websites

When your website starts to attract more visitors, shared hosting can slow down or become unstable. A VPS gives you extra CPU power, memory, and bandwidth to handle higher traffic. This means your site stays fast and reliable, even during busy times like product launches or seasonal sales.

Running Online Stores

Ecommerce websites need hosting that can process payments securely and load product pages quickly. VPS hosting offers a private environment and dedicated resources, which helps with PCI compliance and customer trust. This makes it a strong choice for businesses that sell products or services online.

Managing Multiple Websites

Agencies, freelancers, and business owners often manage several sites at once. With a VPS, you can keep all of them under one account while making sure traffic from one site doesn’t affect the others. This saves time and provides consistent performance across your portfolio.

Hosting Applications and Software

A VPS can do much more than host websites. Many businesses use it to run tools like customer databases, chat systems, or even internal apps that require more control. Because you can install custom software, it’s a flexible option for projects that shared hosting can’t support.

Supporting Remote Teams

Companies with distributed teams often need a secure way to collaborate online. VPS hosting can power video conferencing platforms, project management tools, and file-sharing services. This gives remote teams reliable performance while keeping sensitive data protected.

Game Servers and Media Streaming

Gamers and content creators often set up VPS servers to run multiplayer games or streaming services. The dedicated resources make sure performance stays smooth, even with many people connected at once. This provides a better experience for players and viewers.

Backups and Development Environments

A VPS is also useful for storing backups or testing new projects before launch. Developers often create “staging environments” on VPS servers to experiment safely without affecting live websites. This makes it easier to test updates, troubleshoot issues, and protect valuable data.

Whether you’re growing a website, running an online store, or experimenting with new applications, VPS hosting adapts to your needs. Its balance of performance, flexibility, and security makes it a practical choice for anyone who has outgrown the limits of shared hosting.a high amount of resource-intensive load on your server to see how it responds and recovers.

Scalable VPS Infrastructure, Fully Managed

When shared hosting can’t handle your traffic, VPS delivers dedicated resources that scale with demand. Our team manages the technical complexity while you manage your business.

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VPS Hosting

Comparing VPS Hosting vs Other Types of Hosting

FeatureVPS HostingShared HostingDedicated HostingPrice Range$$$$$$Experience LevelIntermediateBeginnerAdvancedRAM ResourcesDedicated to InstanceSharedDedicated to ServerCPU ResourcesDedicated to InstanceSharedDedicated to ServerRoot AccessYesNoYesWeb-Based Control PanelcPanel, Control Web PanelcPanelcPanel/WHMOperating System OptionsYesNoYesDedicated IP AddressIncludedAdditional PurchaseIncludedCan you install other software such as: CSF, ClamAV, PostgeSQL, Brotli, Varnish, Tomcat?YesNoYes
Comparison Chart for VPS, Shared Hosting, and Dedicated Hosting

For additional details, see our full comparison of Shared Hosting vs VPS Hosting.

Types of VPS Hosting

Cloud VPS hosting refers to a hosted virtual server in a cluster or an array of networked servers sharing data. With server load distributed among a vast network of computers, there is little to no downtime.

Managed VPS hosting is a virtual environment pre-loaded with a control panel, operating system, and critical software. Most hosting companies offer additional management services on top of this hosting stack, so even non-experts can enjoy the benefits of private hosting.

Unmanaged VPS hosting is generally cheaper than managed because you get a bare minimum of hosted services with your package. You get an operating system and a text-based terminal, that’s it. This is a cost-effective way to save and enjoy more freedom for do-it-yourself users. But, for most users, the managed approach is worth the extra costs.

To learn more see our article on Managed VPS vs Cloud Server Hosting.

Frequently Asked Questions

Is VPS Hosting Worth It? Why VPS Hosting?

Every website has unique needs. For a site with 25-50 visitors at a time, shared hosting is enough with proper optimization. But, as traffic grows to hundreds or thousands of visitors, a VPS is essential.

Is VPS Server Hosting Better Than Shared Hosting?

A virtual private server is a good balance between basic shared hosting and high-end dedicated hosting. It provides more control and resources than shared hosting but is more affordable than a dedicated server.

How Many Websites Can I Host On a VPS Server?

You can host virtually unlimited websites on a VPS platform. You are only limited to the amount of disk space, RAM, and CPU capacity of your container.

And, you can upgrade these resources without downtime as your needs grow.

What is VPS Hosting Used For?

It is often used for applications requiring full control over server resources.

VPS web hosting provides scalable cloud infrastructure for small to medium-sized businesses. It supports document editing, video conferencing, CRM, project management, live streaming, load balancing, traffic monitoring, and more.

Learn more about what you can do with Linux VPS hosting.

How Much Is VPS Hosting?

It is often more expensive than shared hosting but offers better performance. Now that you know what a VPS server is, you may wonder, “What is VPS hosting going to cost me?” Plans generally cost between $20 to several hundred dollars per month.

InMotion Hosting VPS plans usually range from $14.99 to $74.99 per month.

How Much Bandwidth Do You Get With a Virtual Server?

Bandwidth can range from a few terabytes to unlimited. Choose a plan based on your current needs, and you can always upgrade your hosting to get more resources in the future without moving to a new server.

Choose The Best VPS

A VPS offers the perfect blend of performance, flexibility, and control for websites that require more resources and customization options. With a VPS hosting provider like InMotion Hosting, you can elevate your website’s performance, enhance security, and scale your resources when needed.

Don’t settle for limitations, embrace the possibilities of VPS hosting with InMotion Hosting today!

If you have any questions or comments feel free to drop them below. Check out our VPS Product Guide for more helpful tutorials.



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