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VPS vs Dedicated: Which Hosting Plan is best for you?

A hosting provider plays a significant role when it comes to distributing online content. The first step to developing a website and reaching potential leads is to have a reliable web hosting service. The host you pick will impact the scalability of your business website. 

There are various types of hosts. Two of the prominent hosts are VPS hosting and dedicated server hosting. You may feel confused about selecting the right hosting service if you are just starting. No worry, we are here to guide you. Today, we will explore which hosting service is ideal for your online business.

 What is VPS Hosting? 

A VPS or Virtual Private Server hosts numerous clients’ websites on a specific physical machine. Do you find it similar to shared hosting? Well, there’s a vital difference between the two. Unlike shared hosting, VPS hosting uses a hypervisor for separating tenants. 

All the clients on the virtual private server are presented as if they are on a distinct dedicated machine. It simulates the environment of a dedicated server all the while cutting down costs and resources. However, the structure of both VPS and shared hosting are physically similar.

VPS hosting offers more resources – robust computing power, intensive software or graphic modules, powerful CPU, and extensive memory than a shared server. 

What is a Dedicated Server?

As the name suggests, a dedicated server is dedicated to a single client. Therefore, the customer has complete access to the entire range of resources available on the server. It includes processing power, memory, hard drive storage capability, and network access. 

A dedicated server poses in sharp contrast with a shared plan where you have no or very little control over the server environment. It is also distinct from the VPS option which allows you some control over the environment. Nevertheless, there too, any web hosting provider would impose certain limitations. 

In the case of a dedicated server, there’s absolutely no limitation or restriction. 

Also Read: Guide to Dedicated Server: Types and Use Cases

Pros and Cons of VPS

Pros and Cons of VPS

Pros of VPS 

  • Cost 

The first advantage of the VPS option is that it is a cheaper solution compared to a dedicated server. Since it hosts multiple clients in a specific environment, the cost is divided between everyone. 

The best part is that the client has to pay for a fraction of the entire server but can access all the performance of it. Low-profile dedicated servers start at about 3 times the rental price of an average VPS.

  • Scalability 

A virtual private server is a scalable environment. As your business grows and you need to scale up your business, you can expand your space on the virtual server. That way, you can enjoy access to a wider range of features and facilities. Since a dedicated server allows full space for a client, it’s difficult to scale up as one’s business grows.

Cons of VPS 

  • More expensive than a shared server 

If you own a start-up, you may want to invest in a shared hosting service. That way, you can save some money all the while powering your online presence. VPS hosting is undoubtedly pricier than shared hosting. Again, managed VPS hosting is pricier than unmanaged one. If you are new to the market, this may not be appealing to you.

  • Limited access

As opposed to dedicated hosting, VPS hosting imposes some limitations on the clients. If you want to go beyond the limits, you have to upgrade the VPS package and may even have to upgrade to a dedicated server. As your business grows and requirements increase, such limitations may seem to be bothersome. 

  • Less secure

VPS hosting is less secure than dedicated hosting. However, if you contact a reliable hosting service provider, you need not worry. The provider will maintain the server environment and enhance security.  

Also Read: What are the Advantages of Using VPS Hosting?

Pros and Cons of Dedicated Server 

Pros and Cons of Dedicated Server 

Pros of a dedicated server

  • Control 

You have full control over the software installed in your server and you can also choose the hardware you want to integrate into it. You can also customize the entire server according to your requirements and determine the configuration you need. 

  • Awesome security 

Security is a crucial concern in today’s age as cybercrime is rapidly increasing. Therefore, you cannot compromise with security while selecting a server. And a dedicated server ensures that you need not worry about it. There’s no security threat from fellow clients’ websites. You can also adopt relevant security measures to protect your website further.

Also Read: 11 Tips to Make Your Dedicated Server More Secure

  • Performance reliability 

As opposed to shared hosting, you need not share space with other clients while using a dedicated server. The main problem of using a shared server arises when your fellow clients’ websites are highly traffic-driven. As traffic increases in one or two websites, a shared server tends to support them. As a result, the rest of the websites in the server environment suffer. It can also lead to a site crash and evoke a negative user experience at your website. You can rest assured that a dedicated server won’t bring any such hassles to you.

Cons of dedicated hosting 

  • Expensive 

A dedicated server is pricier than shared hosting or VPS hosting. Since you have unlimited access to all the features, you have to pay generously. 

  • Technical expertise required 

Non-technical business owners may find it challenging to operate a dedicated server. You can customize the server just the way you want. This demands serious tech skills.

  • Not for small businesses 

Small businesses need not invest in purchasing a dedicated server as their websites won’t receive huge traffic in one go. VPS hosting or even shared hosting seems to be enough to power their presence in the digital realm.

 Key Differences between VPS Hosting and Dedicated Server

Key Differences between VPS Hosting and Dedicated Server

There are some notable differences between VPS hosting and dedicated servers. We have briefly discussed this in the previous sections. Here, we will elaborate on both of them and evaluate their merits.

  • Cost 

Cost is a notable distinguishing feature between VPS hosting and dedicated hosting. VPS hosting allows multiple clients to use one server. Therefore, the cost of the server is divided among the clients and each client has to pay a small amount. Nevertheless, it costs more than shared hosting. Unlike shared hosting, here, each client has their own set of resources and they seem to own the environment. 

On the other hand, a dedicated hosting service requires more investment. Here, each client owns the server. The clients can customize the software, hardware, and even the core features of the environment as per their requirements. This demands less investment from the customers.

  • Security 

Though VPS hosting has progressed significantly from its earlier stage, it is not as advanced as dedicated hosting. Especially, when it comes to security, dedicated hosting is way ahead of VPS hosting. 

Since multiple websites share a virtual private server, the security loopholes in one website may expose the rest to vulnerabilities. As a result, the threat of virus attacks or cyber crime increases.

On the other hand, a dedicated server doesn’t allow multiple clients in one environment. Therefore, it has tighter security than VPS hosting. Also, website owners can enhance the security of the dedicated server by purchasing customized features. 

  • Scalability 

VPS hosting service is more scalable than a dedicated server. As a business or website demand grows, the owner can expand the resources and occupy more space in the same VPS environment. However, once you own a dedicated server, you have to upgrade the entire package to extend your bandwidth. 

Managed vs Unmanaged VPS and Dedicated Hosting

There’s a significant aspect of VPS hosting that we have not covered yet. It is about managed and unmanaged hosting. It deals with setting up, configuring, managing, and maintaining your site hosting environment. 

An unmanaged plan, as the name suggests, demands you to execute everything. Here, you are responsible for all things related to the server’s software. In the case of a dedicated unmanaged plan, you have to customize all the features, functionalities, and security protocols in the server environment. In the case of the unmanaged VPS plan, the host will only provide the virtual machine and leave the rest to you.

A managed plan stands in the opposite spectrum of this. Here, the web host takes care of almost everything and you need not break a sweat. Here, you can inform your required web hosts and they will install, configure, and maintain the server on your behalf.

If you are not a tech expert or don’t want to bother about these, it’s better to opt for a managed plan. No matter whether you are engaging in VPS hosting or dedicated hosting, a managed plan will allow you to focus on your business and the host will take care of the technical nitty-gritty. 

Other Hosting Types

There are various types of hosting other than the ones we mentioned, e.g., virtual private server, dedicated hosting, and shared hosting. We will explore the types of hosting services in this section. 

  • Reseller web hosting – It allows the clients to emerge as web hosts. They can use individual domains after being affiliated with a reseller. It is like a shared hosting plan.
  • Colocation web hosting – It is similar to dedicated hosting. However, the users own a colo server. Here, the hosting service provider offers a physical space for the server and maintains it.
  • Cloud hosting – The platform enables the customers a scalable, powerful, and reliable hosting service based on load-balanced servers. 
  • Clustered hosting – It is ideal for creating a scalable solution for web hosting. It can separate web serving from a database hosting capacity.
  • Grid hosting – Here, a server cluster works like a grid. It is composed of distinct nodes.
  • Home server – Here, a machine is placed in a residence and can one or more websites connected with a consumer-grade broadband network. Usually, one can obtain a DNS hostname by crafting a private account through a dynamic DNS service. 

VPS vs Dedicated Hosting: Which one is suitable for your Business? 

VPS vs Dedicated Hosting: Which one is suitable for your business? 

A dedicated server and a virtual private server have some significant differences. Which one is better for your business depends on your specific requirements. 

For instance, small and medium-scale businesses may not need full-scale resources available on a dedicated server. Purchasing such a system may seem to be extravagant and VPS hosting can be enough for them. However, if you consider your business to receive huge traffic anytime soon, it’s better to invest in dedicated hosting.

There can be various reasons why one would pick a dedicated server. In a shared server, if other clients’ websites receive more traffic, your website may not get adequate support from the server and get crashed. The situation is somewhat similar when it comes to VPS hosting. Since many competitors occupy the same server environment, the page loading speed may be affected. 

Loading speed is a crucial concern for all website owners. Studies reveal that most people will leave a web page if it doesn’t load within 2-3 seconds. This concern leads the owners to purchase a dedicated server. 

Dedicated servers are mainly used by enterprise-scale, internationally operational companies. You can also seek suggestions from a data center service provider. Serverwala is available 24/7 to help you with all your queries. 

How to Choose the Best VPS and Dedicated Hosting Provider?

When it comes to selecting a hosting service provider, the first step is to decide on an option. Once you have determined the one between VPS and a dedicated server, pick a reliable hosting service provider. Below are the key benefits that Serverwala offers –

  • Budget 

Whether you own a small or medium-scale business or a large enterprise, you sure don’t want to squander resources. Serverwala ensures that you do not need to waste your money. They offer different types of packages. All the specifications of each package are mentioned on the website and you can pick one as per your requirement. 

Rest assured that you won’t be burdened with any hidden charges. The service provider facilitates both VPS and dedicated hosting. So you can invest in the one you need.

  • Maintenance

If you don’t have any technical expertise to maintain a server, rely on the experts. The tech experts of Serverwala will maintain the server as and when required. It ensures consistent facility and your website will never get crashed.

  • Customer service 

You need to maintain a close connection with the hosting service provider. Many business owners often complain about poor customer service provided by low-quality hosting service providers. When it comes to paying them, you can always get them one call away. However, just when you need their assistance, they won’t accept your request. That’s not the case with Serverwala at all! They’ve got your back just whenever you need them.

Before investing in their service, you can read the ratings and reviews of earlier customers.  


To sum up, if you own a huge traffic-driven website or a high-volume eCommerce website, you should opt for a dedicated server. On the other hand, if you own a small or medium-sized business, you need not invest in a dedicated server. You can customize the resources as per requirement. VPS hosting is enough for you. 

No matter whichever hosting option you choose, make sure to opt for a reliable hosting service provider. You can get multiple packages and choose one as per your budget. Also, they will maintain the server and you need not worry about server downtime. 

Arpit Saini

He is the Director of Cloud Operations at Serverwala and also follows a passion to break complex tech topics into practical and easy-to-understand articles. He loves to write about Web Hosting, Software, Virtualization, Cloud Computing, and much more.

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