VPS hosting: Your guide to understanding virtual private servers

Roksolana S. | November 19, 2024
16 mins

The evolution from shared hosting to VPS

What is web hosting?

To make a website available online its files need to be uploaded to a web server — which is usually purchased from a hosting provider. This service is known as web hosting

By choosing a web hosting service, you let the hosting provider handle the technical side of your website. It allows you to focus on creating great content and reaching your audience.

The limitations of shared hosting

Shared hosting is a great option for many, but it also has limitations that need to be taken into account. With shared hosting, you share server resources with other websites. In some cases, this can lead to performance issues during peak traffic times or when other users overuse their resources. 

Another thing to remember is that when multiple websites are sharing the same server, a security breach on one website could potentially affect the others.

Shared hosting also offers minimal control over server settings and configurations.

Upgrading resources on shared hosting plans is usually limited and may involve migrating to a higher plan.

VPS hosting: The middle option

VPS (virtual private server) is the hosting type suited to those who have outgrown shared hosting. With shared hosting, multiple sites reside on a single web server with shared hosting and have no guarantee of resources. But with VPS plans, there are fewer users that are to share allocated segments of hard drive space, memory, and processor power.

Each user on a VPS server has access to a virtual machine running its own operating system (OS). This allows customers with websites using VPS hosting plans to experience similar capabilities and performance as with their own dedicated server.

Many website owners start out by choosing shared web hosting. Then as their site grows and demands more server resources and functions, they may find they need a more powerful hosting option. A virtual private server is often considered to be the stepping stone between shared hosting and dedicated hosting, with your website running on its own server.

We’ll explain using a simple analogy. Shared hosting is like living in an apartment — it’s cheap and may come furnished with everything you need. The tradeoff is sharing facilities with many other people (sharing resources with the other accounts on the same server), and if you throw a big party (have lots of traffic), building management may want to talk to you.

A dedicated server is more like having your own house with acres of land around it. All resources in the house are for your sole use and you won’t be bothered by your neighbors, even if you do throw a party (experience high traffic).

VPS lies somewhere in the middle. It behaves like a dedicated server but with allocated system resources. We can see VPS as something like a townhouse — it's bigger than an apartment (shared hosting) but you share the property and certain services. Also, entertaining a high number of guests (having lots of web visitors) is easier.

Hosting isn’t the easiest topic to get your head around, but the foundations of what you need to know can be understood fairly quickly. If you’re looking to get VPS hosting but are still undecided — stick with us. Whether you’re a freelance photographer showcasing your portfolio or need to create a community organization's informational website, VPS hosting solutions might be the perfect fit. 

How does VPS hosting work?

The condo analogy

As already mentioned, site owners often start off with a shared hosting plan. As a business or website grows it demands extra functions and more resources. Site owners look to upgrade to a more suitable hosting plan. VPS is the next logical hosting option when making the transition from shared hosting. Let’s go back to find out more — so what is shared hosting?

Back to our housing analogy. We likened shared hosting to living in an apartment complex where the same location and server resources are shared among the residents. With shared hosting, several residents (websites) share the resources of one building (a single physical server). This type of hosting is really affordable and allows you to save money. Skilled professionals manage the shared hosting environment, a control panel is available for customers to manage their site. The main issue with this style of hosting is the available bandwidth and room that’s included. It’s more than enough for most new websites, but at some point, websites will need something that scales as they grow. Another drawback to shared hosting is that it can’t handle traffic spikes so well.

VPS hosting answers the problems of scalability and limited resources. This style of hosting is like owning a condo within a building that has fewer residents. A virtual private server is divided into numerous virtual cubicles within a server, and every account will get quantities of these allocated sources — a portion of the server’s CPU, disk space, memory, and bandwidth, plus full root access. You still share the server (building) with other people, but you now have more control over your space, using it as you see fit.

For example, when you own a condo, you may install a new door or hang artwork on the walls without much trouble. If you want to knock through a wall or add a new bathroom, you are within your rights to do that. Unlike apartment living (shared hosting), with VPS, you may make fundamental changes to the virtual machine, such as changing the operating system.

VPS is a more powerful setup than shared hosting. The great thing about a VPS hosting service is that it emulates a dedicated hosting environment, but with allocated system resources divided between individual sites. The next alternative is the most expensive option — a dedicated server where all of a server’s resources are dedicated to a single user, similar to owning your own home.

Virtual machines and hypervisors

If you’re familiar with VMware or Virtualbox, you’ll probably know how VPS hosting works. These programs let you run what are known as virtualized operating systems from one machine. For example, your computer might be running OS X, but you could run different systems like Linux or Windows 10 without having to reconfigure or restart your computer.

VPS web hosting environments work in the same way as a virtualized operating system in that one server runs numerous, unique virtualized operating systems on a single server with each virtualized system acting as though it’s a dedicated server. 

Virtualization is possible through a hypervisor. A hypervisor is computer hardware, software, or firmware that creates and runs virtual machines (VM) by separating the underlying physical hardware from a computer’s operating system and applications. The computer system on which the hypervisor runs is known as a host machine and each VM is a guest machine.

The hypervisor provides each guest machine (each website using the VPS) with a virtual operating system, and takes care of managing and executing guest operating systems. This process makes the most effective use of computer resources, such as network bandwidth, memory space, and processor cycles. For this reason, hypervisors also go by the name of virtual machine monitors (VMM).

Understanding server virtualization

VPS hosting relies on a hypervisor to take resources from the physical server and provide each website with access to an emulated server, also known as a virtual private server or virtual machine (VM). These physical servers are held in a datacenter and divided equally between several virtual compartments,  through a process called server virtualization. Each compartment is rented out, and server software is set up on them separately so that each unit is capable of functioning as an independent unit. Each separate VPS is called a container, and the server each container is held within is known as a node.

With VPS, you benefit from many of the advantages of a dedicated server for a significantly lower cost. It offers more privileges within the OS and allows users to install custom software capable of running on that OS. Each virtual server’s software is installed separately, enabling independent functionality for all users.

Dedicated resources on a shared server

Certain amounts of CPU time and memory are shared throughout all the accounts sharing the server space. Some websites in separate virtual private server compartments but powered by the same server might be much larger than others. But all users are guaranteed the system resources they are paying for.

VPS vs shared hosting: A detailed comparison

The shared hosting model: advantages & drawbacks

Shared hosting is the most cost-effective option for startups. It provides a reliable platform for launching your online presence. Most shared hosting providers offer user-friendly control panels that are helpful for customers with limited technical knowledge. 

Shared hosting companies often handle server maintenance, security updates, and other technical features. Shared packages typically include all essential features like databases, FTP access, and basic protection against common threats. Usually, shared hosting providers offer different upgrade options to serve growing websites. 

At the same time, other websites on the same server can affect your website performance. You have minimal control over server configuration and resources. Security breaches can happen more often as multiple websites share the same environment.

It's crucial to consider these factors when choosing shared hosting for your website. If you have a small to medium-sized website with moderate traffic and budget constraints, shared hosting might be a suitable option. But for websites with high traffic or strict security requirements, a VPS hosting plan might be the one to go for.

How VPS addresses the limitations of shared hosting

VPS hosting effectively overcomes most of the challenges of shared hosting. VPS provides users with dedicated resources and increased control thanks to the isolated virtual servers within a physical machine. 

Unlike shared hosting where server resources are shared among multiple websites, VPS offers dedicated CPU, RAM, and storage. This ensures consistent optimal performance regardless of other users' activity on a server. Each virtual server is isolated, which reduces the risk of security breaches affecting other websites on the same physical server.

VPS plans also offer more flexibility to scale resources up or down, and VPS hosting users have more control over server settings, custom software installations, and configurations.

The benefits of VPS for growing websites 

VPS hosting offers the following advantages that make it a great choice for fast growing websites:

  • Reliability: since resources are dedicated to your website, there is a higher level of reliability compared to shared hosting.
  • Enhanced performance: VPS provides dedicated resources like CPU, RAM, and storage, which means better website performance.
  • Scalability: you can easily upgrade your VPS resources when your website grows, so you can manage increased traffic.

To sum up, VPS empowers website owners to deliver a better user experience and support business growth.

VPS vs shared hosting: A detailed comparison

Different types of VPS hosting

VPS is a step up for most users, but you'll also benefit by knowing a bit more about the technology. When your website is stored on a VPS, you are solely responsible for setting up, maintaining, and running the server yourself — handling an internet server is not an easy task. It involves taking care of VPS security patches, server configuration, software updates, and much more. Unless you have the degree of technical skills required, it will be challenging. For this reason, there are two versions of VPS hosting in terms of server management – managed VPS hosting and unmanaged, or in other words, self-managed VPS hosting.

Unmanaged VPS: Full control, requires technical expertise

With unmanaged VPS, your web hosting takes over installing the operating system, and you as the site owner take over managing various aspects of the server such as:

  • Installing software, your control panel and taking care of software updates.
  • Monitoring for security threats, installing security patches, and fixing error messages.
  • In the event of an outage or hardware issue, you probably won’t get much technical support from your host.
  • Configuring and maintaining your server, including any upgrades you might want to see.
  • You take over the responsibility of setting up your website backup services.

This is recommended for site owners who have a stronger technical background.

Managed VPS: Hands-off solution for non-technical users

Site owners with less technical knowledge or a smaller staff can benefit from managed VPS. With managed VPS hosting, IT professionals lighten your load by keeping your server configured and running correctly. Here’s what you should expect from VPS hosting providers:

  • Initial server setup
    When you launch your site with a VPS, you need to take a few steps in order to set the server up. This includes installing your control panel, server software, applications, and operating system. A managed host will take care of this.
  • Updates
    All applications, OS updates, and ongoing fine-tuning of the server will also be managed for you.
  • Security patches
    Any security patches for your OS and core server software will be installed and updated, to ensure optimal protection and system stability.
  • Monitoring
    This is done for early warning signs of hardware failure and malicious attacks.
  • Automated backups
    In case anything goes wrong with your site, you can retrieve it back to an earlier version.

Namecheap's flexible VPS management options

Check with your VPS hosting provider to see what levels of management they offer. At Namecheap, we offer User-Responsible, Basic, Complete, and Paid Assistance (one-off paid assistance available for the User-Responsible plan) management plans.

The tradeoffs between managed and unmanaged VPS hosting are cost against flexibility. While unmanaged hosting services are far cheaper than managed plans, there is a drawback — you need to have the technical know-how to run and maintain a server. Or be prepared to hire someone to keep it running smoothly and safe from potential attacks.

The advantages of VPS hosting

The main benefit of VPS servers is that they give you the freedom of having your own virtual machine. This is similar to what you would get from a more expensive, dedicated server with performance that allows moderate traffic and the occasional heavy spike.

Customization: tailor your server environment

With a VPS, you can customize your operating system to your needs. For example, if you have instances of server applications, such as PHP, MySQL, and Apache, you can customize them so that the server fits your needs.

Control: Manage your server independently

Offers the ability to oversee a hosting environment. Also, if you plan to install applications that need you to perform a system restart to finalize the installation, you can do this without affecting anyone else, at any time. Even though you share your virtual server with other clients, you can restart your VPS without disrupting others.

Affordability: More power than shared hosting, less cost than dedicated

VPS hosting plans offer more power and resources than shared hosting. This allows for better performance and handling increased traffic. At the same time, it comes at a lower cost compared to dedicated server hosting, which makes it a more budget-friendly option for those who need more control and resources than shared hosting has to offer.

Dedicated resources: Guaranteed performance

With a VPS Server, you have a predefined amount of RAM available to you whenever you need it. In contrast to shared web hosting, where there could be others sharing your server that could eat up the RAM when you need it the most.

Scalability: Easily upgrade as your website grows

Another great thing about VPS is that you can purchase the resources you think you will need, and if it’s not sufficient, you can simply increase the size.

Do I need VPS hosting? 

Signs you've outgrown shared hosting

It's important to understand when your website has outgrown the limitations of shared hosting. Here are some key indicators:

  • Slow performance: If your website is experiencing frequent slowdowns, especially during peak traffic times, it is a sign that you need more resources.
  • Increased traffic: A burst in website traffic that consistently overwhelms your shared hosting plan can lead to website performance issues.
  • Resource constraints: If your website is hitting resource limits like CPU, RAM, or storage, it's a sign that more power is needed.
  • Specific software: In case you need to install custom software or applications not supported by your shared hosting plan, it's time to consider an upgrade.
  • Customization limitations: If you need more control over your environment, you should probably explore other hosting options like VPS or dedicated hosting.

When VPS is the right choice

There are use cases for every type of hosting, so who exactly is VPS hosting for? You should consider VPS hosting if:

  • Your business is expanding beyond the constraints of shared hosting.
  • You are expecting a substantial increase in site traffic within the next few months. For example, your site is geared toward a new marketing campaign, or if you’re expanding into other markets.
  • You have enough bandwidth to handle a single website, but not two or three. If you plan on hosting several websites in the near future you’re going to need more resources. If your current shared hosting account is eating through the resources and your host is asking you to consider upgrading, it’s probably time to make the upgrade.
  • Your website needs better privacy and performance compared to what’s available with shared hosting.
  • You want full control over the server, for things like custom configurations, root access, and installations unavailable with shared hosting.

VPS hosting — the scalable solution for your growing website

Recap of VPS benefits

VPS hosting is the best way to keep up the success of any site going through rapid growth and expansion. It’s the next best plan that is better for scalability. With VPS, not only will you enjoy a tremendous amount of storage and bandwidth (that’s all yours), but it’s also a cost-effective solution to meeting the demands of a busy website. Of course, we’ve mentioned dedicated hosting, but in many cases this will be a vast amount of resources you may not need, and at a significantly higher price.

When deciding between the type of VPS, consider how hands-on you want to be, or whether you are able to employ someone else to do the heavy lifting for you. If you like the sound of running your own server, go for unmanaged VPS. If you’d like some help with server maintenance, automated backups and software updates, opt for the managed version.

Why Namecheap is a leading choice for VPS hosting

Namecheap offers optimized VPS hosting plans in three types of VPS management: User-Responsible, Basic, and Complete. User-Responsible and Basic plans include full root access, and with Basic we assist our customers with the additional configuration of core hosting services to meet the specific requirements of each site. 

We can also help to optimize the server performance, offering constant monitoring of all services on the server to prevent any of them from going down, and will take immediate action to resolve issues if sudden downtime occurs. 

Our Complete service plans (root access not provided) include all the features of the basic option, with extras like priority support and weekly backups. There is also the option for paid assistance if you need some help on one occasion only. 


Biography

Picture of Roksolana S.

Roksolana S.

Roksolana joined the Namecheap team in 2015. With a background in philology, she has experience in creating various written content, including linguistic articles for scientific journals. Currently, she is a Product Coordinator in the Hosting Product Team, where she contributes to the creation of Guru Guides. You can connect with Roksolana on LinkedIn.

More content by Roksolana S.


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