Table of contents

What is a VPS?How a VPS worksBenefitsAlternativesUse casesWhat is VPS hosting?When to use VPSManaged vs unmanagedSecurityPerformanceHow to choose a VPSVPS and WordPressNext stepsAdditional resources

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VPS Guide

VPS: A complete beginner’s guide to virtual private servers

Updated: April 2025

Whether you’re scaling an e-commerce store, hosting game servers, or managing client projects, a hosting solution that provides reliable performance and flexibility is crucial … but you may also be on a budget.

That’s where VPS hosting comes in—a versatile option that bridges the gap between affordability and dedicated resources.

Let’s break down VPS hosting in simple terms, explain when to make the switch, and show you how it compares to other hosting options on the market.

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What is a VPS?

A VPS (virtual private server), sometimes called a virtual dedicated server (VDS), is a virtualized hosting environment made of compute resources from a portion of a physical server. The VPS replicates many of the properties of a physical server, with similar processes and functionality.

Primary characteristics of VPS hosting include:

Root access to your virtual private server from any location
Isolated storage, bandwidth, and CPUs for each isolated instance
Dedicated environment that cannot be affected by neighboring server usage
More resources and control than shared hosting environments

How a VPS works

A VPS uses virtualization technology to provide dedicated (private) resources to individual, virtual servers.

The VPS environment is created on a physical server, known as a host machine. Here’s a breakdown of how VPS servers operate.

1. A hosting provider sets up a physical server.

The host machine is a powerful computer with substantial resources such as CPU, RAM, storage, and network bandwidth. A hosting provider establishes the server in a secure facility.

2. The server is divvied up into multiple virtual machines.

The key to a VPS is virtualization technology. This technology creates multiple, isolated virtual environments from the same physical server.

3. A hypervisor isolates server resources for each VPS.

The hypervisor allocates a fixed portion of the physical server’s resources to each VPS. These resources include CPU, RAM, storage, and bandwidth—none of which are shared with other users on the server.

4. Operation systems and software are installed.

Each VPS has a Linux or Windows operating system. Depending on your web host, you may be able to choose your Linux distro of choice. Users are given root access (in Linux) or administrator access (in Windows), which means they have full control over their environment.

5. The server is fine-tuned for its intended purpose.

A VPS may also include services like dedicated IPs, backups, CDNs, server management, and DDoS protection. All of these services ensure that your VPS works optimally.

VPS benefits

VPS hosting offers several distinct benefits to users:

Reliable performance – A VPS provides dedicated resources, ensuring consistent performance without being affected by other users on the server.
Tighter security – Isolated hosting environments reduce security risks by preventing vulnerabilities from spreading between accounts.
Guaranteed uptime – VPS hosting typically includes service level agreements (SLAs) that ensure high availability and minimal downtime.
Seamless scalability – You can easily upgrade your server’s resources to handle traffic spikes or business growth without downtime.
Cost-effective performance – VPS hosting balances affordability with dedicated resources, offering better performance than shared hosting without the high cost of a dedicated server.
Custom software and application compatibility – Unlike shared hosting, a VPS allows full root access, enabling you to install and configure any software you need.
Automated backup and recovery – Many VPS providers offer scheduled backups and easy restoration to protect your data.
Faster site speeds – With dedicated CPU, RAM, and SSD storage, VPS hosting delivers quicker load times and improved site performance.
Greater flexibility – You have full control over server configurations, operating systems, and software, allowing you to tailor your environment to your needs.

Learn more: 9 incredible benefits of VPS hosting →

Types of servers: VPS vs shared vs dedicated

A good way to better understand what a VPS is, is to understand what it’s not. Here’s how a VPS compares to other types of servers and hosting arrangements.

VPS vs shared hosting

In a shared hosting arrangement, one server is shared by multiple clients. There is no specific allocation of resources; everyone uses server resources as needed. This opens doors for privacy and security concerns, as well as unreliable performance based on your “neighbors” on the server.

VPS servers also share resources from a single machine, but, unlike shared hosting, each VPS client is allocated a specific portion of that physical server. This means that your website’s performance is not affected by other users on the server, and it improves privacy and security.

VPS vs dedicated hosting

While VPS hosting provides a virtualized environment with dedicated resources at a lower cost, dedicated hosting gives you full access to a physical server for maximum control and power.

In a dedicated, or bare metal, hosting arrangement, an entire physical server is set aside for one client. All of those server resources are yours, so performance is guaranteed. It’s also the most secure solution, since no other user has access to your server.

Feature	Shared server	VPS server	Dedicated server
Performance	Low – resources are shared with many users	Medium – dedicated portion of resources	High – full resources available
Scalability	Limited – must upgrade to VPS or dedicated	High – can adjust resources as needed	High – upgrade hardware as needed
Cost	Low – most affordable option	Moderate – higher than shared, lower than dedicated	High – most expensive option
Security	Low – shared environment increases risks	Medium – isolated environment	High – complete control over security
Customization	Limited – restricted software and configurations	High – can install and configure software	Full – total control over server environment
Technical Knowledge	Minimal – beginner-friendly	Moderate – requires some server management	Advanced – requires server admin skills
Resource Allocation	Shared – performance varies based on other users	Dedicated portion of CPU, RAM, and storage	Full access to all server resources
Best For	Small websites, blogs, personal projects	Growing businesses, moderate traffic sites, apps	Large businesses, high-traffic sites, enterprise applications

Use cases: What is a VPS used for?

The flexibility, security, and low barrier to entry make VPS servers helpful for a wide array of use cases. Some of the most common include:

Hosting websites – A VPS provides more control, performance, and security than shared hosting, making it ideal for business websites, blogs, and eCommerce stores.
Game servers – Many gamers use a VPS to host private game servers for titles like Minecraft, CS:GO, and Ark: Survival Evolved, ensuring better performance and customization options.
Running web applications – Developers use VPS instances to deploy web apps, APIs, and SaaS platforms without the limitations of shared hosting.
Hosting email servers – A VPS can be used to set up a private email server, offering better privacy and customization than third-party services.
Remote desktop and virtual workstations – Businesses and individuals can use a VPS as a cloud-based desktop environment to access work files, run applications, and enhance security.
Development and testing environments – Developers use VPS servers to create isolated environments for coding, staging, and testing software before deployment.
VPN and proxy servers – A VPS can be configured as a VPN or proxy server to enhance online privacy, bypass geo-restrictions, or secure business communications.
Data storage and backups – VPS hosting can serve as a secure offsite backup solution or a cloud-based file storage system with controlled access.
Crypto and trading bots – Traders use VPS instances to run automated trading bots and crypto nodes, benefiting from uptime and low-latency connections.
VoIP and communication servers – Businesses can host VoIP (Voice over IP) and chat servers on a VPS for more reliable, private, and scalable communication.

What is VPS hosting?

VPS hosting is a type of web hosting service wherein a hosting provider rents a virtual private server to a client. VPS or VPS server refers to the virtual machine, and VPS hosting refers to the agreement and process of making that VM available for client use.

VPS hosting services are not all equal. Different hosting providers offer varying degrees (and quality) of service, security considerations, and more.

When to use a VPS

Scaling up (from shared hosting) or down (from a dedicated server) to VPS hosting can improve your performance, control, security, and ROI. Here are the key signs that it’s time to make the switch.

Increased traffic

You’re on shared hosting, your resource demands are experiencing consistent growth, and you notice slower load times or more downtime.

Resource limitations

You need more CPU, RAM, or storage than what shared hosting provides.

Security concerns

You require advanced security features, such as custom firewalls or isolated server environments, to protect sensitive data.

Customization needs

Your website or application requires specific server configurations, software installations, or custom settings unavailable on shared hosting.

Performance uncertainty

You need dedicated resources to ensure steady performance, especially for ecommerce sites or resource-heavy applications.

Managed vs unmanaged: Types of VPS hosting

VPS hosting is often available at various management levels and with advanced options.

Managed VPS hosting

Managed VPS is a hands-off approach where the hosting provider handles technical tasks and VPS maintenance, to ensure functionality and security. It’s ideal for businesses if:

You don’t have a dedicated IT staff, or you don’t know how servers work.
Security is a priority, but you struggle with keeping systems up to date.
You need support that can guide you, or take care of issues for you.
You don’t have the time to (or just don’t want to) figure out how to maintain your server.

Unmanaged VPS hosting

Unmanaged, or self-managed, VPS hosting is an arrangement wherein the client rents a VPS from a hosting provider, but the client is responsible for the management and maintenance of that virtual server. This gives the client complete control to customize the server.

Semi-managed VPS hosting

Semi-managed, or core managed, VPS hosting is a middle-ground solution between managed and unmanaged hosting. Which services are included depends on the hosting provider, so be sure to check.

Is a VPS secure?

Yes, in general, a VPS is a secure hosting solution. Unlike shared hosting, where multiple users can potentially compromise each other’s security, the isolation of a VPS minimizes the risk of security breaches.

In practice, a VPS is as secure as its owner makes it. Users need to configure firewalls, install security software, and apply custom security settings, giving them more control over their server’s protection. Regular software updates, strong authentication methods, and proper configuration of security settings are essential to prevent vulnerabilities.

If you’re not confident about properly securing a VPS, managed hosting services can help.

Is a VPS reliable?

Yes, a VPS is a reliable hosting solution, because it provides dedicated resources and operates independently from other virtual servers on the same physical machine.

Unlike shared hosting, where performance can more easily be impacted by other users, a VPS ensures consistent uptime and stability. Many hosting providers offer features like redundant network connections, automated backups, and uptime guarantees of 99.99% or higher.

Again, reliability also depends on proper server management, including regular updates, security configurations, and resource monitoring to prevent performance issues.

How to choose a VPS hosting provider

Selecting the best hosting provider is crucial for ensuring your website or application runs smoothly and efficiently. Here are the key factors to consider:

Performance and resources: Look at the amount of CPU cores, RAM, and storage offered in each plan. Ensure the provider offers the resources you need, with room for growth as your site scales.
Managed vs unmanaged: Decide whether you want an unmanaged VPS or a managed VPS (where the hosting provider handles server maintenance, updates, and security).
Scalability: Choose a provider that allows easy resource upgrades. As your site grows, you may need to scale your CPU, RAM, or storage without disrupting your digital operations.
Uptime: Look for a provider with a high uptime guarantee (typically 99.9% or above) to ensure your website remains accessible with minimal interruptions.
Security: Ensure the provider offers robust security measures, such as firewalls, DDoS protection, automated backups, and SSL certificates, to keep your data safe.
Support: Opt for a provider with responsive and knowledgeable 24/7 customer support to assist with any technical issues, especially if you’re new to VPS.
Value: While cost is important, focus on the value for money by comparing the resources and features included in each plan. Ask about hidden fees related to upgrades and customer support.

VPS and WordPress

For WordPress users looking for more power and control over their website, VPS hosting for WordPress is a significant upgrade from shared hosting. While shared hosting can work for small, low-traffic WordPress sites, as your site grows in terms of traffic, content, or complexity, you’ll likely need more dedicated resources to maintain optimal performance.

One of the key benefits of using a VPS for WordPress is the improved performance. VPS resources are dedicated, which allows your WordPress site to handle more traffic and run faster, especially when it’s resource-intensive or uses a lot of plugins.

Another significant advantage of VPS hosting for WordPress is the level of control it offers. With a VPS, you gain root access to the server, allowing you to customize server configurations, install custom software, and manage security settings to suit your specific needs. This is particularly useful if you need to run advanced WordPress setups, such as multisite installations, or if you need to install specific server-side applications like Nginx or Redis for enhanced performance.

Getting started with a VPS

When you’re ready to get started, or to upgrade your VPS hosting to a high-quality VPS, Liquid Web can help. We’ve been leading the industry for decades, because our VPS servers are fast, cloud-based for easy scalability, and unbeatably reliable. Choose your favorite OS and the management tier that works best for you.

And because we offer the highest quality VPS and dedicated server hosting, you can scale up from a VPS to a dedicated server with a single click. Avoid a painful migration when your business, or database, or audience grows beyond a VPS.

Click below to explore VPS hosting options or start a chat with one of our experts right now to learn more.