VPS vs dedicated server – Which is better?

Short Answer (quick read).

The question “VPS vs dedicated server” can be answered by taking a quick look at both systems. So, here we go:

What is a VPS?

A VPS (Virtual Private Server or vServer) is a setup inside a large powerful computer in a data center connected to the internet. This computer contains multiple servers that can be used by other customers. These customers share the machine but not their allocated resources. This type of hosting is much cheaper than dedicated accounts.

What is a dedicated server?

It’s an Internet computer in a data center that exclusively belongs to you which is not shared with other customers. This system is much more expensive than virtual private servers.

VPS vs dedicated server comparison from this wonderful Cloud hosting company.

At this Cloud provider the difference between dedicated and VPS hosting is the same as mentioned above.

However, to give you a better idea of the price differences between the two systems, we will show you a price comparison here:

  • Their cheapest vServer plan costs $6.50 a month while the lowest priced dedicated plan costs $36.67. So this dedicated hosting plan costs more than 5 times the cheapest VPS!
  • The most expensive vServer plan from Linux Hosts Inc. is $193.67 a month while the most expensive dedicated plan is offered at $461.67. That is more than double the price of the most expensive VPS package!

As you can conclude, the price differences are huge. From a financial point of view, VPS is clearly the most attractive option. Another difference between the two systems is the fact that a dedicated machine is never in the Cloud unlike the virtual private servers of this provider which are all in the Cloud. This practically eliminates downtime. And, it’s the only web host in the world with a strict No Overselling Policy.

See the VPS plans 

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

Hopefully this summary was good enough to explain dedicated server vs VPS. However, we invite you to read on to learn everything about the details.

Long explanation.

Which is better VPS or dedicated server?

VPS is for websites requiring technical knowledge and flexibility from the user. A dedicated server is physical and not virtual and also requires the necessary experience and skills on how to setup, handle and maintain a web server. The most common use of the two technologies is to host a website when a shared account doesn’t offer enough options anymore. But there’s so much more you can do with your own machine (virtual or not) such as:

  • a deployment environment for developers
  • busy online shops
  • game servers
  • mail servers
  • development environments
  • cloud services
  • media servers
  • host a website and/or
  • an application
  • private, secure playgrounds
  • hosting sites for others
  • VPN server
  • seedbox for torrenting
  • stocks, options or Forex trading
  • management of computers and users
  • share files or email inboxes
  • provision of downloads
  • sharing databases or programs
  • data server
  • private cloud storage
  • a test system
  • calendar and tasks
  • communication (VoIP telephony or chat) and more.

So, how do VPS and dedicated hosting differ?

In general, having your own server, regardless of whether it is a VPS or dedicated server, means you need technical knowledge and it will be necessary to invest some work and some extra money if you opt for a dedicated web service.

Basically there are 2 main differences between the two methods: Unlike with dedicated web hosting, vServers are shared with others and dedicated packages cost much more than VPS. However, to shed more light on the differences between the two, let’s first clarify what a virtual private machine is and then what distinguishes the other technology, in order to quickly draw a conclusion for you.


VPS is a virtual web server that is part of dedicated hosting. The Internet computer is divided into multiple virtual servers that are separated from one another. This division is realized with the help of so called virtualization software.

VPS servers are software residing on hardware component. Depending on the computing power, several virtual machines are working on a main server that are sharing its power. However, every user has a certain part of the hardware resources – this is set by the provider during the setup of the virtualization. The machine has its own IP and can be managed as if it were a physical server.

With a VPS, like with classic web hosting, you share the system with other customers. VPS web hosting is not just storage space, but an independent instance that has a certain amount of computing power.

Advantages of a VPS:

  • It’s cheap and fast.
  • You are in full control.
  • You are the one to manage, configure, restart or to switch the VPS off.
  • In addition, vServers are flexible as there are many different options.
  • Performance and security is better than shared hosting.

However, keep in mind that you will be responsible for maintenance and security. This means that besides administration knowledge, Windows or Linux knowledge is required.

The choice of using a VPS or another solution depends on several factors. One of these factors is the matter of IT knowledge as we can see above while you may be dealing with high traffic sites or complicated projects.

With a VPS, you are less dependent on the web host than with pure web hosting, as you can, for example, install your own PHP version.

Dedicated Server: Independent machine for you.

A dedicated machine is a “real, fully-fledged” non-shared web server. The full memory and processing power are available to you only. You can use the entire performance for your project.

The performance values ​​such as processing power or web space are also completely different than VPS. Since the hardware is exclusively available to you, this is of course also financially noticeable. So this system is quite expensive. So, dedicated web hosting only makes sense if you actually need the performance. Examples are an online shop, complicated websites with a lot of traffic, high data volumes or a large database.

Dedicated servers advantages:

  • The system is extremely flexible.
  • Enough disk space, strong processor performance and enough memory.
  • As with a VPS, you have your own IP.
  • These servers offer you a high level of data protection and security.
  • Due to the capacity available, such as storage space or RAM, you can usually look forward to significantly shorter loading times.


A virtual machine is the ideal choice if regular website hosting can’t provide you with a good performance, while the most expensive option would be an oversized solution for you.

With a VPS you enjoy a high degree of flexibility compared to hardware servers, as the system runs on a virtual machine. This means that the system can easily be moved to another location if needed. There’s much more flexibility compared to dedicated plans.

As said before, dedicated servers are significantly more costly than virtual ones. And with VPS you can already do almost everything that would be possible with dedicated plans. You noticed that we used the word “almost”. Of course the expensive solution ultimately offers better and more options than VPS. You might say that a vServer is the Mercedes in the hosting industry while dedicated web servers are the Rolls Royces when it comes to web hosting. We hope that your question “VPS vs dedicated” is answered to make the choice easier to you. Good luck!