How does VPS work? – An easy explanation!

Short Answer (quick read):

The question “how does VPS work” can be answered by taking a quick look at this system. So, here we go:

A VPS (virtual private server) works like a dedicated web server. However unlike the physical dedicated machine a VPS is virtualized. Virtualization is the method of splitting up a physical web server into multiple independent virtual machines. So it actually is software, not hardware. Each virtual computer can run its own operating systems. You share the main physical web server with others but not your own virtual private server. Other users have no access to the resources that are allocated to you. Hence the term “private”.

How does VPS hosting work at this wonderful Cloud hosting company?

This company’s virtual private server plans provide dedicated resources so you know your website or application will perform as expected. They offer multiple VPS hosting options, each featuring distinctly different management levels with different virtualization techniques. The company’s VPS is in the Cloud which practically eliminates downtime.

See the VPS plans 

PS. By the way, I use this Cloud Hosting Service myself on a daily basis and I love it!

Hopefully this summary was good enough to answer the question “how VPS works“. However, we invite you to read on to learn everything about the details.

Long explanation.

What is virtualization technology?

Anyone looking for a good hosting solution for a new website, online shop or web application will come across the term “VPS” again and again on the Internet. But what exactly is it and how does it work?

What is VPS hosting?

VPS hosting is hosting a virtual private server. A VPS hosting environment simulates an independent, dedicated computer within a shared hosting environment. Technically speaking, it is both shared hosting and dedicated hosting.

VPS hosting combines the strengths of complete shared packages for web hosting and dedicated physical servers. So you can host your websites and internet-based applications on a single isolated virtual machine.

The term “Dedicated Server” designates a machine that, with its full capabilities, is exclusively available to a single customer.

VPS hosting is one of several types of web hosting accounts that you can choose from to host your site online. In order to have a website on the internet, you need to have your files on a web server.

Having your own web server can be expensive and difficult to set up and manage. On the other hand, buying a web hosting account allows someone to rent space on a web server, which makes it easier for the regular user to host a website online as all they have to do is upload their website files. There’s no need to set up servers because the web hosting provider already did it for the customer.

In what way is VPS different from shared and dedicated hosting?

With dedicated servers, you rent an entire machine. This is ideal for people who have very high traffic to their websites or who need to set up their server in a very complex or specific way.

However, not everyone needs to have a fully dedicated internet computer. If you are just starting out with your website, renting a small portion of the server can save you a ton of money. Shared hosting is when you share part of the server with other users rather than renting an entire machine for yourself. However, if this type of hosting is not for you and you are thinking about buying a dedicated plan but you are unsure if it is right for you, then consider VPS hosting as well.

How does VPS hosting work?

The technology behind VPS hosting is similar to that of VMware or Virtual Box. These two programs allow you to run multiple virtualized operating systems on one computer. For example, your computer can run Windows 11, but you can also run other operating systems such as Windows 10 or Linux in a virtual environment without having to restart your computer. All virtually installed operating systems can run in parallel simultaneously. This is one of the many advantages of virtual private servers. So now you already know the basics of how VPS hosting works.

So, what is virtualization?

VPS hosting environments work the same way. Several different virtualized operating systems can run on a single physical machine in so-called containers, which are strictly separated from one another to increase security.

Every virtualized operating system behaves as if it were a dedicated server. This allows you to take full advantage of a dedicated package at a fraction of the cost of a “real” dedicated machine.

Depending on the provider, different solutions are used to virtualize the operating system. Examples are KVM and OpenVZ. Each VPS hosting environment is called a container, and the physical server that each container is hosted on is called a node.

What are the benefits of VPS hosting?

VPS hosting gives you the affordability of shared hosting in terms of pricing while simultaneously giving you more power and control like with a dedicated account.

Data protection.

Since you don’t share your operating system or files with anyone, there aren’t any other websites on your server that might have access to your files or your resources such as RAM, processing power and storage space.


With a VPS you have your own operating system. That also means that you have your own instances of all applications like Apache, PHP and MySQL. If you need to adapt one of these services, you can make changes as you wish to adapt the machine to your individual needs.


If you are installing applications that require a system restart, you can do so at any time. Even if you technically share a physical server with other VPS users, your VPS can be restarted without affecting other users and without others affecting you.

Dedicated resources.

Dedicated amounts of RAM are always available on a VPS. In contrast to shared hosting, there is no one on your server with whom you have to share your guaranteed resources.

VPS management options.

VPS hosting platforms often offer a choice between different management applications (control panels) for the VPS. With these management applications, you can configure your account even without advanced knowledge and use open source software such as WordPress, Joomla, Magento, Shopware, etc. It is also possible to easily integrate new domains or to install free Let’s Encrypt SSL certificates.

Here are some examples of management applications or control panels:

  • Plesk
  • cPanel
  • Hepsia

How VPS hosting works – a conclusion.

Hopefully you now understand how VPS server works. With a virtual private web server you can enjoy two different worlds, namely the world of shared hosting and the world of a dedicated account. You share the main non-virtualized machine with other customers but these users, unlike with shared hosting, cannot affect your virtual machine in any way. And, like with dedicated hosting you have all the freedom to do with the server what you want. Scroll up to the start of this article where you can find the link pointing to one of the best VPS providers and good luck!