vps vs vds - how to choose the correct hosting type

VPS vs VDS Servers - How to Choose the Right Hosting Type

7 min read

There are several options available when it comes to hosting a website or application with the most popular ones being VPS (Virtual Private Servers), VDS (Virtual Dedicated Servers), bare-metal servers and shared web hosting.

Both VPS and VDS servers offer a plethora of different advantages including granular level of control, scalability and flexibility that bare metal does not, making them the go-to option for many businesses and experienced professionals. Additionally, they are also a lucrative option for newcomers as well, offering more power and server customization than shared hosting. This is why today we are going to be shining the spotlight onto these 2 particular hosting types - VPS & VDS servers.

However, while similar in nature, there are some key differences between the two hosting options. Today we are going to explore the differences between these virtual servers. We are also going to help you determine which option is best suited for your hosting needs based on their advantages and drawbacks.

What is a VPS Server?

VPS, short for Virtual Private Server, is a virtual machine that runs its own copy of an operating system in addition to running on its own virtual resources. A VPS basically mimics a physical server, however, all resources are virtualized. This is also why there can be multiple virtual private server instances running on the same physical server. It is also the reason due to which VPS servers share the physical server’s resources between themselves.

Confused? Here’s a better way to describe this. Imagine living in an apartment building. You are essentially sharing the building with other people, but you have your own personal apartment, which is completely independent from the others that are occupying the same building.

If you were to be using shared hosting for example, you’d have to share all of the physical server’s resources, which could potentially leave your hosted website or application starving for memory, storage or processing power.

This would then consequently lead to slower loading times, worse user experience and a mediocre performance in search. This is far less from ideal if you are trying to grow a business, drive in more traffic or increase sales. While shared hosting is definitely cheaper than VPS servers, virtual private instances are a far better choice for your money not only because of performance but also due to their other features.

This is why VPS hosting is a great choice for websites and web-hosted applications that require more control and flexibility than traditional shared hosting. Not only that but they also don’t have the price tag of a dedicated server and are not limited by scalability.

You can securely host your website on its own virtual machine, with its own dedicated resources, while still sharing the processing power of the physical server, which will give you maximum performance similar to a dedicated instance without you having to pay a ridiculous amount of money.

VPS advantages over shared hosting & dedicated servers

  • Cost-effective compared to dedicated servers.
  • Offers more control, security, isolation, access and software options than shared hosting.
  • Scalable & easy upgrade or downgrade with instant deployment.


  • Less power and isolation compared to dedicated servers.
  • Performance can be affected if other VPS servers on the same physical server are utilizing exceptionally high resources.
  • Requires some technical knowledge to manage and maintain the server, compared to shared hosting.
  • Although affordable, VPS servers are more expensive than shared hosting.

What are the most common uses for a VPS server?

Due to their flexibility, virtual private servers are suitable for all types of hosting needs, websites and applications with some of the most popular ones being:

  • E-commerce websites
  • Storage
  • Personal projects and businesses (portfolios, local stores)
  • Business and enterprise systems
  • CMS website hosting
  • Game servers
  • Software and application testing
  • Crypto-based activities
  • High-level data processing
  • AI development
  • Custom VPN server

What is a VDS server?

VDS as an abbreviation stands for Virtual Dedicated Server. While many consider VDS servers to be substantially different from VPS servers, they are actually VPS servers with dedicated resources.

Remember our analogy with the apartment building? Let’s say the apartment building has a general parking area, where everyone could leave their vehicle for free. Each apartment building has its own parking space outside of the building.

That’s what VPS resources are - they are shared amongst everyone equally with each virtual machine taking up a given amount of resources from the shared resource pool of the physical server.

With a VDS, however, you get dedicated resources entirely for your server. It’s like having a separate garage to park your vehicle in that nobody else can use. Simple, right? With custom resources that are reserved for you and you only, you gain the advantage of your server always being at their maximum performance without having to pay the price for a full-on bare-metal dedicated server. With dedicated resources, such as reserved dedicated CPU cores that are not shared with other servers, more processing power is available and can be used 24/7 at 100%.

Due to all of these features, VDS servers can be used for anything, but because of their more expensive nature, they are predominantly used for websites or applications that are on a bigger scale, which require more resources.

Advantages of getting a VDS server

  • Offers better performance and reliability compared to VPS servers.
  • Provides more isolation and dedicated resources, ensuring consistent performance.
  • Scalable and cheaper than bare metal servers, but with similar effective resources.
  • Better overall security and resource isolation compared to shared hosting.
  • More granular control over every aspect of your server.


  • Due to allocating dedicated resources, VDS servers are more expensive in comparison to VPS servers.
  • Also requires some technical knowledge to manage and maintain the server.

VPS vs VDS servers

Given that the dedicated resources that come with a VDS are usually reserved CPU cores, virtual dedicated servers are a better option for CPU-intensive applications as well as websites that require a lot of computing power.

This is why such servers are usually purchased by bigger corporations, companies and businesses that need the processing power in order to fulfill their day-to-day tasks. This could be an e-commerce website or a business platform that might have many individual interactive elements as well as a high number of concurrent user interactions or just high traffic in general.

Such projects are required to complete a large set of instructions or calculations in a short period of time, which is where the dedicated CPU cores come in quite handy. But also such servers can be used for other purposes with low budget, that require full CPU power, because of the better price than bare metal server.

In short, the only notable difference between the two is the fact that VDS servers have dedicated resources, which results in better and more consistent performance when compared to VPS servers. However, they are more expensive, which is why they are usually utilized by bigger companies for larger scale projects.

Which one should you choose?

Both VPS and VDS servers offer a level of control that shared hosting cannot provide. VPS servers are a cost-effective option for those who require more control and resources than shared hosting but have a limited budget. VDS servers are ideal for those who require dedicated resources and better performance and are willing to invest more. Ultimately, the choice between VPS and VDS servers depends on your specific hosting needs and budget.

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