What is a virtual private server (VPS)? 

A virtual private server (VPS) is a hosting environment that simulates a dedicated server environment within a physical server. The physical server is virtualized into multiple independent units using software. Each unit is its own private server, but it shares the resources on the parent server. 

How does VPS hosting work? 

VPS hosting uses a parent server to host multiple virtual servers separated from each other. Hypervisor software is added to the parent server, which creates a virtual layer on top of the operating system (OS). The virtualization software then separates the virtual resources into instances. This separation allows each user to install their OS and software, creating a private server separated from others at the OS level.

VPS vs shared vs dedicated hosting

We’ve covered the basics of VPS hosting, the meaning, and how it works, let’s look at how VPS hosting compares to shared and dedicated options. 

Here’s a quick refresher on what these hosting types are:

  • Shared hosting is when multiple websites share resources on the same server. Those resources are distributed based on the demand and current traffic of websites on the same server.
  • Dedicated hosting is when you are the sole owner and user of a physical server. Every resource and every ounce of horsepower is dedicated to your projects.

Shared hosting vs VPS

Shared hosting is when multiple websites share resources on the same server. Those resources are distributed based on the demand and current traffic of websites on the same server. 

VPS, on the other hand, does not share resources with any other websites on the same server.

Dedicated hosting vs VPS

VPS and dedicated hosting differ in terms of resources, control, and scalability. Both options cater to users who need more performance and flexibility than shared hosting.

The most notable difference is security. Dedicated servers are more secure because you have control over the whole server. VPS does not have the same level of security because you share a parent server with other instances.

VPS is typically used for workloads that require consistent performance. Businesses use VPS for:

  • Hosting websites and ecommerce stores
  • Storing files accessible worldwide
  • Development and staging environments
  • Hosting web servers, emails, and databases
  • Building and delivering cloud-based services
  • Virtual workstations for remote employees

Companies typically opt for VPS hosting when they need:

  • To scale beyond shared hosting
  • To scale down from a dedicated server
  • Reliable performance
  • Improved security over shared hosting
  • Custom software installation
  • Multiple isolated environments

Ready for more? Don’t miss VPS: A complete beginner’s guide to virtual private servers →

Final thoughts on VPS hosting

Whether you’re looking to scale beyond shared hosting, improve your website’s performance, or have more control over your server environment, VPS hosting is an excellent option to consider. With Liquid Web, you’ll gain access to industry-leading performance, security, and support, making it easier than ever to run your business smoothly.

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