VPS vs. Dedicated Hosting: Understand The Options

Hosting can be broken down into four general types: shared hosting, virtual private servers (VPS), managed hosting, and dedicated servers.  Shared hosting plans are the lowest tier of web hosting in terms of performance, price and customizability, which leaves those with serious hosting needs to look into VPS, managed hosting, or dedicated hosting options.  There are many different options available to customers seeking VPS and dedicated hosting solutions, which creates a somewhat blurry line between the two general types of hosting solutions.

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Get Dedicated!

Dedicated servers are often the fastest and most powerful choices available, though some of the high-end VPS options can give the lower performing dedicated servers a run for their money.  The point is that dedicated servers really occupy the upper strata of the web hosting performance spectrum, and are typically priced accordingly.  There are a few benefits to selecting dedicated servers, some of which may or may not be available on some VPS solutions.

One of the major attractions of a dedicated server is that it is generally completely under the control of the customer.  Therefore, it can be rebooted when needed and can also be completely customized in terms of the software it runs.  Customized software can be very important for a number of reasons, but even if the software is off-the-shelf, not all VPS and shared-web providers give their customers carte blanche to install and run additional software.  In fact, most shared hosting providers have limits to what can be installed in terms of resource allocation, and VPS providers may not always give 100% control of their virtual modules to customers.  In short, dedicated servers are usually able to run anything that their hardware can handle.

That hardware is another attraction to dedicated hosting services.  VPS solutions share the resources of a single computer in most cases, but dedicated servers put all of the resources at the disposal of a single customer.  Memory, hard drive storage capacity, processing power, and network access are all 100% dedicated to a single customer instead of shared amongst multiple VPS customers or dozens of shared web hosting customers.  The result is that performance should be very predictable, which is very important for those who are planning on hosting e-commerce solutions or planning on monetizing their website(s) in other ways.

A Primer on Virtual Private Servers

Virtual private servers are a little harder to get one’s head around than dedicated servers, mainly because dedicated servers are something that nearly everyone can identify with: a computer.  Virtual private servers are different from dedicated servers in that instead of running one hosting account on one computer/server, virtual private servers share a single server.  This may cause one to wonder what the difference is between a VPS solution and a shared web host.  This is a fair enough question, and there may be variations to the answer depending on who one chooses to ask.

The most basic answer is that shared web hosting plans are mostly offering unlimited bandwidth and often unlimited storage, but there is no promise in regards to the amount of CPU power and/or memory available in most cases.  Additionally, there are often restrictions on installing and running CPU/memory intensive modules or software, as hosts may view such software as very disruptive to the other accounts on their server(s).  VPS solutions almost always offer a minimum allocation of resources that is guaranteed 24/7, and some even offer ‘burst’ resources that may be available whenever the load on the server allows for it.

The other thing that separates VPS solutions from shared web hosting is the amount of control customers will have over their hosting plan.  Does the server need to be rebooted?  No problems, just flip the digital on-off switch from the control panel and wait a few seconds.  Want to install a resource-hungry software package without looking through approved-lists?  That is also possible with most VPS solutions, but not with all.  The old expression advises that it is not possible to get something for nothing, so be wary of making assumptions about this level of control on the cheapest of VPS packages on the market.

VPS: Terminology to Consider

Having minimal hardware allocated to web serving sounds great, but there is a catch: not all of the hardware specified is necessary as simple or straightforward as it might initially seem.  For example, just because a VPS package claims to offer 1 GHz of CPU performance and 384 MB of memory, does not necessarily mean that either the memory or CPU allocation is not split into multiple chunks.  This might be important for those who plan on running software or processes that are high-performance but poorly threaded.  For the purpose of setting up blogs, however, having virtual ‘pieces’ of a different CPUs and memory contribute to making a single ‘chunk’ or ‘node’ of memory/CPU performance is probably not a serious issue due to the low-intensity of the task at hand.

The bottom line is that consumers shopping for VPS packages need to ask questions about the hardware instead of making assumptions based on what they see.  It also pays to ask whether it is possible to permanently and/or temporarily upgrade a VPS account without downtime if one plans on growing their online presence.  Remember: downtime is the enemy if all websites, especially those that are generating money or anchoring a presence in cyberspace.

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VPS In the Clouds

One of the latest innovations in the VPS market is the use of cloud-VPS solutions.  Cloud VPS solutions make multiple-redundant copies of entire websites in case one server were to be taken offline unexpectedly.  VPS NET (vps.net) is a great example of a cloud-VPS solution provider that can cost between $20 and $234 per month, but other top-tier providers offer great plans as well.  Specific examples include MediaTemple ($50-$150 per month), and HostGator ($19.95-$209.95 per month).

Update: Managed WordPress Hosting

When this article was written, managed WordPress hosting was not very popular. But the past year has really seen the rise of managed WordPress as services such as WP Engine, WordPress VIP, Synthesis, and others have come about. The reason managed WordPress hosting has become so popular is that for all of the power it has, it can also be a pain sometimes.

WordPress can be hacked. WordPress does not scale well. Managed WordPress hosting usually takes the hassle out of hosting your WordPress website by:

  • Automatically updating your WordPress files.
  • Running your websites on Nginx and other powerful software
  • Automatically backing up your website
  • Proactively scanning for viruses and hackers
  • Automatically compressing/caching/and optimizing your website
  • and in the case of WP Engine, guaranteeing to fix your websites if it’s ever hacked!
Managed WordPress hosting provides the same performance benefits of VPS and dedicated hosting, but with less of a headache since you are paying for professionals to manage your website for you.

How to Decide.

Finding the right balance between price and performance is always a challenge, but remember that one usually gets what they pay for.  Sadly, sometimes people get less than they pay for too, so be careful when assuming that money alone is a good measure of quality and capacity.  Compatibility is also important, and thus sticking with top tier hosts with established names is probably a good idea for those with serious hosting needs.

The distinction between VPS and dedicated servers can get blurry at the high-end of the VPS scale and the low-end of the dedicated server scale.  If steady hardware performance and ultimate control of software is important, then dedicated servers are probably a wise choice.  MidPhase has dedicated server packages that start at $89.95 per month and can scale to $349.95 without customization.  There are less expensive options out there, including ServerPronto, but remember the earlier advice about getting what one pays for.  That being said, deals such as ServerPronto’s limited-availability dedicated server for $4.95 per month are amazing, and an affordable way to learn more about dedicated hosting and grow a site or collection of sites until they are ready for some more serious hardware.

If you are looking for great performance and ease of use, then you should look into managed WordPress hosting. WP Engine has packages starting at $29 a month and Synthesis has packages starting at $27 a month. Both of these companies provide unbeatable customer service and amazing performance.

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Written by Nick Reese

Nick Reese is the author of Traffic and Trust, and all round happy dude. When Nick isn't managing web properties he enjoys biking, shooting video, and drinking tea. You should follow Nick on twitter here.

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Comments

  • [...] or businesses that need a reliable web-hosting provider but do not foresee the need to use a VPS or dedicated server should give Bluehost (www.bluehost.com) a very serious [...]

  • Newbie Fletcher says:

    Great article, very informative! However, if say you’re getting into basic video streaming (Http based using something like xMoov), would you recommend dedicated or VPS?

  • Yiwu says:

    Ah.. still can’t decide to use VPS or Dedicated servers, as the dedicated server need to manager myslef, and most VPS is managed..

  • Rahul says:

    In most cases, a VPS can actually be slower than shared hosting. I think that a dedicated server running 20 instances of Plesk would be much slower than a dedicated server running 1 instance of Plesk and hosting 20 websites. There are some high-quality and cheap dedicated servers out there for $100 or less. If one has a successful website and resources, I would recommend going directly to a dedicated server instead of a “VPS.”

  • Hosted Power says:

    Hi,

    In general I would say a VPS performs a lot better, since all hardware behind it, is from a much higher class. For example the disk array used to store the VPS are HUGE and redundant. Meaning they can handle a lot more iops than an average dedicated server. To get the same performance and redundancy as with VPS’es, the investment would be huge!

    I don’t see where you have no freedom with a VPS compared to a dedictated as well. I would say you have more freedom. One can easily extend or downgrade a VPS anytime. Which allows great flexibility at any time and is costsaving.

    I’d say, if not convinced, try it yourself ;)

  • Walter Scott says:

    It is definitely right, All this features which is shared web hosting, virtual web hosting, dedicated server hosting can provide a lot of value and benefits for businesses and website owners.

  • Thank god i landed on this page after my site was shown as “Bandwidth Exceeded”. I’m on a Hostgator Business Hosting Plan, that promises “Unlimited Bandwidth” but still got a “Bandwidth Exceeded” message, and I didn’t know how that was even possible. That’s when I contacted their support and they tole me: “we do provide 25% of server resource usage on shared hosting plans.”

    As it is, I have to upgrade my hosting now. Now, the thing is, my site’s a fairly new one and not into generating decent revenues yet. Its an info site and the revenue model is via adverts (adsense and others). But with just about 1000 visitors a day, it’s still early days and not viable for me to get a dedicated hosting at this point either.

    So I am thinking of going for a VPS plan for now. Since I don’t need to run any additional software or anything of the sort, and my site is WordPress based, is it a OK choice until i start making some revenue and upgrade to a dedicated?

    Thanks,
    Phone Arena India

  • Caio says:

    In the media temple one, you left out a 0 in the maximum price. its 1500 not 150.

  • Murray says:

    Great article buddy. Has come in handy. We’ve used both and would have to say dedicated has proven to be the better to the two (by a long way)

  • Dedicated Servers India says:

    Thanks for the detailed explanation. VPS hosting are the ideal bridge between shared hosting and dedicated server. Obviously, it’s not pretty like have you own server, but for many it’s the
    perfect solution.Dedicated hosting allows to have a complete control of your atmosphere and operate all from customized software and application to database.

  • Bobby Soren says:

    Hey Nick !
    Congrats on bringing on such posts to help us “the troubled noobs “.

    But it could have been great if you had compared some hosting providers and put some front end details about cloud vps and cloud dedicated .A

    Anyways. It’ll be nice if you could add those details up .

    Cheers,
    Bobby

    • James says:

      Hi,

      Im running a vps with 4 gig ram, dual core processor, unlimited Bandwidth.. Im providing audio streaming, utilising centovacast software. Recently a few clients streams have begun excessivly buffering, and dropping out. Ive spoken to my vps provider and they have suggested I switch to a dedicated server. They suggest dedicated servers can maintain “a constant” stream more relibily… Whats your thoughts. I would have expected a vps to have been able to out perform a vps. I even asked them to check the vps had enough resources as I was willing to upgrade if necessary. Im concerned my current vps provider may be trying to get me to purchase a product/service which is either unsuitable or not the answer? to the buffering issues

      • Hosted Power says:

        Hi,

        That’s not normal. It probably means their disks are too slow or CPU’s overcommitted.

        I’m not sure which country you’re targeting, but we have VPS’es based in the Netherlands. You have a no good money back guarantee on them, but I’m confident the performance is very good. We have some US customers as well like http://orops.info/ who are very satisfied, even from US.

  • be it a virtual or dedicated ..both have their own utility…anyways thanks for sharing this information….

    • James says:

      Hi,

      Thanks for the replies. I turns out the V.P.S was usings shared resources and shared “Pipe” so at peak times this was quite dramaticly affected. Have now moved to a dedicated server and the improvement is very noticable. Clients have even commented how much better the whole system is.

  • Mitch says:

    Hi,

    Great article.
    I am interested in your thoughts on a dedicated WordPress hosting environment vs VPS
    I realize Dedicated blows both out of the water every time.

    Shared isn’t good enough for most WordPress sites with any amount of traffic.

    Thoughts? Experiences?

    Thanks!

  • VPS says:

    Hi,

    Found it very interesting & useful. Nice post.

  • Social Network says:

    Very helpful info, thanks!

  • Thank you so much for this post. its realy helpful.

  • Cloud VPS says:

    In essence, VPS is like a dedicated server, except that you “own” only part of the server’s resources. While dedicated servers are a big financial and technical investment, VPS offers an “in between” option that is substantially less expensive, comes with technical support, and does not require the ownership (and therefore the responsibility) of the hardware. VPS is a valuable solution if your website has outgrown your shared hosting plan, which happens with a lot of high-traffic websites, because VPS provides users with root-level access to the server, while still keeping the ease and simplicity of a shared hosting account.

  • Dualocean says:

    Everybody must understand that every second must sell, ig you dont have a full
    performance of your machine you cant sell. Cloud permite you to use a VPS more dedicated.

    Thanks for article!

  • RobertNelson says:

    Thanks for the detailed explanation.
    Great article body,
    I am interested in your thoughts on VPS hosting and dedicated servers.

  • nistha says:

    As both have their own advantages but vps hosting is better in terms of prices.

  • This month I shifted from dedicated server to VPS hosting level 5 on Hostgator. But performance is not good as they promised. I’ll say plan well before deciding before choosing any hosting package.

    Now I’m going back to dedicated server :(. I’m very disappointed from VPS performance.