04.06.2025 4,198 21

Martin Pramatarov

When browsing for hosting solutions, you’ll find at least a couple of viable options from the very first search. Initially, you’ll probably see shared and cloud solutions. They are OK for starters, but when you want better reliability and performance, you will undoubtedly face the VPS hosting vs Dedicated Server hosting dilemma. What are the differences? Let’s explore! 

What is VPS hosting? 

A virtual private server (VPS) is a cheaper alternative to a dedicated server for hosting. The user gets a virtual device with an installed OS for their needs that they can access over the Internet. The big difference is the word “VIRTUAL.” By choosing VPS hosting you will only get a virtual machine, a part of a bigger real server. You will have a piece of the whole computer, just like the rest of the users. You can expect less performance in comparison to using the whole server just for your needs. You would be able to fix the performance issue by easily upgrading it to a more expensive plan. 

Learn how the virtualization works.  

How does VPS hosting work? 

Let’s go technical this time. VPS hosting works through a powerful physical server that is split into multiple virtual servers using software called a hypervisor. This division ensures that each VPS operates independently with its own allocated OS, CPU, RAM, storage, and bandwidth. Users can install custom software and have root access, but they still share the physical server hardware.
Learn how to install VoIP, mail server, and database server.  

Pros of VPS Hosting 

Now, let’s see the two sides of the coin when hiring VPS hosting. We’ll start with the pros. 

• More affordable than having a dedicated server. You will see a significant reduction in costs, compared with having a dedicated server, because the server’s resources are shared by different clients. As a reference, VPS hosting is more expensive than a shared option and cheaper than a dedicated server solution. 

• Easily scalabe. If you start with a basic plan, once your website grows, you can easily upgrade to a more robust one in terms of RAM, CPU, storage, etc. VPS hosting providers frequently offer different plans for you. Prices vary just like the resources every plan includes. Usually, you can upgrade it with just a few clicks. 

• More control than other hosting options. Although you share resources with different clients, you get root access to your specific VPS and can install custom software (operating systems, security settings, etc.) that suits your business needs. You can also enable superuser access, which allows greater control. Other options, such as shared hosting, don’t allow you to do that.  

• Better performance. Since the necessary resources are allocated for websites and applications to run without issues, VPS hosting provides a quality level of performance, and decent speeds and loading times, etc. It is superior to less robust hosting options. 

• Security isolation. One of the clients’ biggest fears when sharing a server is security. Nobody wants to share the security threats suffered by the “neighbors.” Therefore, each VPS is isolated from others and operates independently and with its own security system, reducing the risk of hacking, breaching, or malware spreading.  

Cons of VPS Hosting 

• Not fully dedicated. You share resources like CPU and RAM with other VPS users, unlike a dedicated server. 

• Limited resources. As we said, every VPS within the server has resources allocated to run websites or applications. It can be perfect enough for your business to perform without problems. Still, keep in mind that since multiple VPS users -different sizes and needs- share a physical server, upgradability can be affected if others upgrade resources like CPU or RAM excessively. Hosting providers prevent this by using resource limits or load balancing, but it’s still a risk to consider. 

• Requires technical knowledge. Configuring firewalls, optimizing databases, updating security patches, and troubleshooting performance issues are essential tasks you can’t escape from. If you are not an expert, you may need server management skills to optimize performance and security. Some hosting providers offer Managed VPS, meaning they handle maintenance for you, but this comes at a higher cost. 

What is Dedicated Server Hosting? 

Dedicated server hosting means you’ll get the whole computer (server) for your hosting needs that you can access over the Internet. All the components will work just for you. None of the cores of the computer or the memory will be shared with anyone else. It is the option when you require the absolute best performance and complete control. 

How does Dedicated Server Hosting work? 

Let’s go technical again. A physical machine is allocated exclusively for your use. You have full administrative control (root access) to configure the server however you want. All the available server resources (OS, CPU, RAM, storage, bandwidth) are dedicated only to your website or applications, ensuring maximum performance. 

Pros of Dedicated Server Hosting 

• Maximum performance. Since all resources are available only for you, the server runs at full speed without interference from others. 

• Full control and customization. You can configure any operating system (OS), software, or settings your website or applications need to operate. Having complete control allows you to better tweak the device to your needs. You can add more functionality, extra filters, different types of servers (not just website hosting), better monitoring, and more. 

• High security. Since you are the only user, you don’t have to worry about security risks from other accounts on the server. You can implement all the security measures and technology your website or application requires. 

• Better for large-scale projects. If you own a high-traffic website, enterprise application, or resource-heavy project like gaming servers, dedicated server hosting is a great choice for you. It is suitable for big companies that want to provide fast loading times for their users. It is also ideal for e-commerce sites that get hundreds of thousands of visitors. 

• Updating processes. It may be easy or difficult depending on the service provider. In many cases, the process will be simple and most probably free of charge. Always check the terms and conditions with your service provider before deploying it. 

Cons of Dedicated Server Hosting 

As you just saw, it is a great solution for many businesses; however, there are a few factors that shouldn’t be ignored. 

• Premium quality comes at a higher price. It costs significantly more than VPS hosting because you rent the entire server. 

• Advanced technical skills are required. You need server management expertise to configure, install, and update software, optimize the complete performance, secure it properly against cyber threats, and react in case of problems. Some hosting providers offer Managed Dedicated Servers, where they handle maintenance, but this increases costs even further. 

• Scalability limits and costs. Upgrading a dedicated server usually means migrating to a new and more powerful machine, which can be costly and time-consuming. The change could involve downtime and manual data migration. 

Key differences: VPS hosting vs. Dedicated Server hosting 

Which one should you choose? 

We recommend you to choose VPS hosting if: 

• You have a growing business (website or application) that needs more power than shared hosting. 

• You want a cost-effective solution with dedicated resources but are okay with some sharing. VPS hosting is a great middle ground between affordable shared hosting and high-performance dedicated hosting. 

• You need flexibility and scalability but don’t need an entire dedicated server. 

• You have moderate technical knowledge to manage and configure the server. 

• You run a business with fluctuating traffic, such as an e-commerce store that can experience high traffic during specific sales events. 

• You -or your developing team- need to run specific software, such as Python frameworks, Node.js, or databases like MongoDB. 

Dedicated server hosting might be the right solution if: 

• You run a large business or high-traffic website and need maximum performance. 

• You require high security and complete control over server settings to install and configure any operating system (Windows or Linux), applications, or advanced security settings (sophisticated firewalls, intrusion detection systems, etc.) to meet industry compliance standards. 

• You operate resource-heavy applications that require high processing power like gaming servers, video streaming services, video editing, AI models, machine learning, Big Data analytics, stock trading platforms, or large-scale e-commerce store. 

• You have technical expertise or a team to manage the server. 

• You run a business that handles sensitive data and credit card transactions, such as a financial institution, government agency, or e-commerce store.  

Conclusion 

Now you know the key differences between these two hosting types! VPS hosting provides a great balance between affordability, performance, and control. It can be the ideal choice for medium-sized businesses and growing websites. If you are just starting a site or application, VPS hosting is usually a great choice.  

Meanwhile, dedicated server hosting is the best option for those who need top-tier performance, security, and full control, but it comes at a much higher cost. If your business is large-scale or mission-critical, don’t hesitate; a dedicated server may be worth the investment. If you need further information, contact Neterra.Cloud right now and enjoy your business success (growth) without infrastructural issues! 

 Why contact Neterra.Cloud? 

Neterra.Cloud offers cloud and dedicated server hosting for those with large businesses or a demand for superior performance. Check out our plans and get in touch at contact@neterra.net for any additional information. We can also provide a custom-designed, dedicated server tailored to your particular needs. Just write us an email. 

If you want to see more check out this comparison between VPS hosting and Cloud server hosting.