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What is VPS Hosting & How Does VPS Hosting Work?

VPS Hosting is a website hosting product that dedicates specific server resources to a hosting account. VPS Hosting is used as a predictable hosting solution for high traffic or resource websites.

How VPS Hosting Works

VPS stands for “virtual private server”. A VPS server is a server that runs “virtualization” software that divides & dedicates the hardware resources to specific accounts.

Imagine real-world housing for a second. A VPS is kind of like a row of townhouses. They look like one shared structure. But when you look at the blueprints, every single townhome is separated from the rest all the way to the ground. There is no “co-ownership” of anything even though it’s all a single structure.

A VPS server might be a single server located in a single rack – but it behaves like multiple servers since everything from the memory to storage space to processing power is already allocated.

What VPS Hosting Is Used For

VPS Hosting is used for running consistently higher-traffic or more resource intensive websites at a predictable price. With a VPS server – you know exactly how many resources you have, regardless of the other accounts on your server.

If you know how many visits you receive, and how efficient your website is – then you can pay a locked-in price for those resources.

Often I’ll see publishers switch to a VPS hosting plan around 25,000 to 30,000 visits per month (that’s when I upgraded). For an eCommerce site, I’ll often see the switch happening around 10,000 visits per month.

Now – both of those numbers are not benchmarks. Your numbers can vary wildly depending on the exact specifications of your website. It always pays to check your own memory, bandwidth, and CPU usage on your hosting account’s cPanel page.

VPS Hosting Differences

VPS Hosting exists on a spectrum of hosting products. Here’s how it differs.

VPS Hosting vs. Shared Hosting

VPS Hosting offers dedicated resources rather than shared resources. It’s kind of like a townhome vs. a condominium. They are both private property within a building. But – with a townhome, everything is allocated. With a condominium, a lot more is shared.

With shared hosting, you have to share all of a server’s resources with the other websites on your server. This means that you can usually get a much better price than VPS – and you can usually get the same performance since the hosting company will work to keep the server load balanced.

However, a VPS hosting plan will offer more control and more freedom.

VPS Hosting vs. Dedicated Hosting

VPS Hosting offers dedicated resources on a single server that is shared with other accounts. Dedicated hosting offers the entire server for your use. You are basically leasing a server with support & top tier connection to the Internet.

VPS Hosting vs. Cloud Hosting

VPS Hosting offers dedicated resources on a single server whereas Cloud Hosting decentralizes your website files & databases across thousands of servers everywhere. With VPS Hosting, you pay for specific resources. With Cloud Hosting, you pay for use – though there are plans that provide a certain number of uses for a stable price.

It’s kind of like purchasing a townhome vs. having some sort of Airbnb subscription where you can stay anywhere, anytime, as long as you pay.

With Cloud Hosting, you basically have unlimited resources – but you pay for each use. With VPS Hosting, you pay a stable price for stable resources. It’s like an a la carte all you can eat buffet vs. ordering an entree for a single price.

Confusingly, many hosting companies mix and match the advantages and disadvantages of each. A common combination is to use Cloud Hosting as a backup for VPS Hosting.

What To Look for in VPS Hosting

Since you are paying for dedicated resources, shopping for VPS Hosting is simpler than Shared Hosting in many ways.

You are really looking for –

  • Server Resources (memory, bandwidth, processors, etc)
  • Server Management Support (how much they’ll help with setup)
  • Server Management Software (does it come with pre-installed graphical software)
  • Data Center Location & Bandwidth Provider
  • Plan Bonuses (ie, automated backups, etc)

VPS Hosting Providers

There are quite a few VPS hosting providers available. Read my reviews and check out their plans.

Keep in mind, using a VPS host will not automatically solve your website speed issues. I wrote a Beginner’s Guide to Website Speed & Performance here.

ReviewMy RatingUptimeWebsite
A2 Hosting8.5/10100%Learn More
Bluehost9.5/1099.99%Learn More
DreamHost9.0/10100%Learn More
FatCow6.0/1099.99%Learn More
GoDaddy8.0/1099.99%Learn More
GreenGeeks8.0/1099.99%Learn More
HostGator9.0/1099.96%Learn More
Hostinger8.0/1099.99%Learn More
InMotion Hosting9.0/1099.95%Learn More
IONOS by 1&17.0/1099.9%Learn More
Liquid Web9.0/10100%Learn More
Namecheap9.0/1099.98%Learn More
Larry Ludwig

About Larry Ludwig

Larry Ludwig is an entrepreneur, financial expert, tech & marketing guru with over 25 years of industry experience.

In July 2018, Larry successfully sold Investor Junkie for $6 million.

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