Which is better VPS or Dedicated Server?

The four prominent solutions of web hosting, namely Shared Hosting, VPS Hosting, Dedicated Server, and Cloud Hosting, each have come to play a significant role in today’s dynamic world of technology and business.
Today, we will delve into the eye-catching differences between VPS and Dedicated Server (VDS) and explain each in more detail. So, clients can choose the right hosting solution between VPS and Dedicated Server (VDS) for their websites or businesses.

If you’re planning on increasing your hosting budget to get a VPS or Dedicated Server (VDS), rest assured that you’re not alone. Our expert team at VPSMakers is here to help you at every step, answer your questions, and guide you through the right direction.

VPS vs Dedicated Server

Here, we will explain seven eye-catching differences between VPS and Dedicated Server.


1- Price and Payment

VPS: VPS provides clients with a specific portion of the whole virtual resource mounted on a physical machine. That’s why VPS Hosting is more affordable than Dedicated Server. VPS Hosting is especially suitable for fledgling start-ups and small to mid-sized businesses.

Dedicated Server: Dedicated Server comes with a higher price tags due to the exclusive use of hardware resources. Exclusiveness of every hardware allows it to deliver an exceptional performance and security for each client. The higher investment on Dedicated Servers is justified for resource-intensive businesses and websites, since these enterprises require high performance and maximum security.

2- Security, Isolation, and Data Integrity

VPS: A VPS is a virtual machine (VM) created from a physical machine. It means a VPS is a physical server originated from a physical server that is partitioned into several virtual private servers. Each of these virtual private servers are dedicated to one specific client. So, an independent physical server environment is more secure than one shared physical server environment with several clients.
A VPS offers isolation to a certain degree, but it’s not as complete and precise as the Dedicated Server. Resource contention can happen if the other VPS users on the same physical machine experience heavy usage.
VPS Hosting is a wise choice for websites handling sensitive data or requiring a moderate level of security.

Dedicated Server: Dedicated Server (VDS) provides clients with an unparalleled level of security. Because in Dedicated Servers one entity (person, organization, website owner) has access to an independent physical server environment.
Dedicated Server offers complete isolation. It means Dedicated Server guarantees clients of the server’s 100% uptime, performance and security. Dedicated Server ensures that the users’ uptime, performance, and security are not affected by the neighboring users’ activities.
This bulwark offered by the Dedicated Server attracts enormous industries which expect processing confidential information, and safeguarding user data and business operations.

3- Customization and Control

VPS: VPS clients have substantial, but not absolute, power over their server environment. With VPS Hosting, users can design their server space as they wish. Therefore, from choosing an operating system to installing specialized software, clients can fine-tune their server settings to precisely align with their business standards and requirements.

Dedicated Server: Dedicated Server bestows clients with a full control over their server’s configuration, operating system (OS), software, and security settings. It means users can install and modify anything on the server. Users have the power to sculpt every dimension of their servers, from hardware configuration to security protocols. So, Dedicated Server is particularly beneficial for businesses with specific compliance requirements or unique software dependencies.

4- Resources Allocation and Performance

VPS: VPS Hosting is made up of a single physical machine partitioned into multiple virtual machines. Each VPS has its own allocated specific resources, but they are shared among different clients on the same physical server. The assignment of allocated resources to each virtual machine prevents performance degradation stemming from the “noisy neighbor” effect. This makes VPS to be a symbol of harmonious balance between performance and cost.

Dedicated Server: In Dedicated Server, an entire physical server is allocated to a single user. All of the server’s resources, including CPU, RAM, storage, and bandwidth, are exclusive to a single user’s applications, websites, and businesses. It means 100% performance guarantee comes from the absence of the resource-sharing option. Dedicated Server is an expert at handling resource-intensive applications and high-traffic websites. So, a Dedicated Server is a go-to choice for big businesses who want to avoid server traffic jams.

5- Management and Technical Expertise

VPS: VPS Hosting is an ideal choice for users or businesses who want control without the need for strong technical expertise. While the users or businesses have the potency to customize their hosting environment, the management of the underlying infrastructure is usually handled by the service provider. So, VPS Hosting creates a balance between user-friendliness and control.

Dedicated Server: In a Dedicated Server, the management responsibility is on the shoulders of the users or business owners. The Dedicated Server demands a higher level of management skills and technical expertise. From software updates to security configuration, all is managed by the users. So, businesses with an expert IT team will find this level of control empowering and authorized. And businesses without an IT team can employ one or outsource that job to an external expertise.

6- Scalability, Growth, Migration, and future-proofing

VPS: Upgrading or scaling a virtual server is simple and cost-efficient process. You can easily upgrade and downgrade resources according to your standards and needs. As your business grows, you can seamlessly upgrade your website/application resources without the need to migrate to an entirely new server.

Dedicated Server: Upgrading or scaling the hardware resources of a dedicated server can be costly. It’s because you may need to acquire additional physical servers.
However, a dedicated server provides substantial resources that can fulfil future needs. It means that users can have long-term resources without the urge for frequent migration. Dedicated servers are a practical choice only for ambitious enterprises, as periodic migration can be a complex and expensive process with dedicated servers.

7- Unique IP Address

Unique IP Address: Dedicated servers come with unique IP addresses, but you can assign up to 16 additional addresses to your VPS. A unique IP Address is essential for websites requiring SSL certificates and powerful SEO strategies.

FeatureWhich one to choose for your business
Price and PaymentVPS is more cheap and affordable than Dedicated Server.
Security, Isolation, and Data IntegrityA dedicated Server is more secure than VPS. In other words, a Dedicated Server (DS) is the Fort Knox of digital security. Nevertheless, VPS Hosting provides elevated security levels in a shared environment compared to the Shared Hosting solutions. It means the levels of virtual machines isolation and the risk of security breach have an opposite correlation with each other.
Customization and ControlBoth Dedicated Server and VPS are customizable in their own unique. However, Dedicated Server are more customizable than VPS. VPS Hosting gives users the utmost control, but Dedicated Server users have 100% absolute control over their server environment. So, Dedicated Server is the symphony of control and VPS is a tool to craft your own virtual environment.
Resources Allocation and PerformanceDedicated Server users act independently because of their exclusive physical server. Dedicated Server unleashes uncompromised performance all the time so it’s a perfect choice for big enterprises dealing with sensitive data. VPS Hosting provides users with optimized resource distribution and, as a result, excellent performance in return for the low prices. But “noisy neighbor” effect is an issue for big business processing sensitive data 24/7. So, VPS is good choice for businesses and websites which want a balance between performance and cost.
Management and Technical ExpertiseA Dedicated Server demands more management skill and technical expertise than a VPS. The underlying infrastructure of a VPS is managed by the hosting provider. But for the Dedicated Server technical mastery is required, because the underlying infrastructure is handled by the users themselves.
Scalability, Growth, Migration, and future-proofingVPS is more scalable than Dedicated Server. Frequent migration in VPS is far easier than in dedicated server. Periodic upgradation of the dedicated server's physical hardware is more expensive than the VPS virtual hardware. So, VPS and dedicated server are the essence of seamless scalability/migration and future-proofing for scale, respectively.
Unique IP AddressDedicated servers come with unique IP addresses, but you can assign up to 16 additional addresses to your VPS. A unique IP Address is essential for websites requiring SSL certificates and powerful SEO strategies.

What is VPS and Dedicated Server (VDS)?

To know the significant differences between VPS and Dedicated Server (VDS), first, you must become familiar with each word.
Most likely, you’re familiar with the concept of the VPS Hosting. We covered an explanation of VPS in a previous post titled Cloud Hosting vs. VPS Hosting.
A virtual server or a virtual machine is an off-site data center created by a physical server or a physical machine. A virtual server is partitioned into multiple virtual servers which clients share (VPS Hosting).
But what about Dedicated Server? A dedicated server is a type of Internet hosting where the client leases or buys an entire physical server not shared with anyone else.


Choosing between Dedicated Server and VPS Hosting depends on goals, standards, and needs of the users.

Dedicated Server

Resource-intensive enterprises (businesses running applications with significant resource demands), such as online gaming platforms or streaming services, should consider Dedicated servers. The substantial resources and performance capabilities vindicate the investment. Also, businesses dealing with sensitive data and financial transactions should take advantage of the dedicated server’s cutting-edge security.

VPS Hosting

VPS Hosting creates a balance between performance and budget. So, VPS Hosting is a practical choice for Small to Medium Websites such as personal blogs, portfolios, or small e-commerce websites. Also, growing businesses anticipating increased traffic in the future due to simple and cost-efficient scalability and upgrading features should consider VPS Hosting.

According to a Statista report, enterprise spending on cloud services in 2022 soared over 25% more than in 2021 and reached $225 billion U.S. dollars. The worldwide public cloud computing market continues to escalate and is expected to reach an estimated 679 billion U.S. dollars in 2024.
Also, the revenue of Web Hosting is expected to grow 22.55% annually (CAGR 2023-2028), resulting in a market volume of 345.00 billion U.S. dollars by 2028. The average spend per Employee in the Web Hosting market has reached US$35.84 in 2023. Most revenue of web hosting market will be generated in the United States (US$45,700.00m in 2023) compared to other global countries.

So, VPS Hosting offers the best of shared hosting and dedicated server. VPS Hosting helps small to mid-sized businesses take advantage of the performance and scalability without spending thousands of dollars buying a dedicated server. So why wait? Go on and get in touch with our team.
Our team can help you to choose the best VPS plan for your business.

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The Author Leili Rasi

tech enthusiast & content writer at VPSmakers

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