VPS vs. Dedicated Server: Find the Best Fit for You

Key highlights

• VPS and dedicated hosting are powerful upgrades from a shared hosting account.
• VPS hosting uses virtualization to give users dedicated resources on a shared physical server.
• Dedicated hosting delivers unmatched power and customization, offering an entire server exclusively for one website.
• Scalability differs between the two—VPS allows easy upgrades, while dedicated hosting may require manual hardware expansion.
• Security and control are stronger with dedicated hosting, but VPS remains a secure and cost-effective option for growing businesses.
• VPS is more budget-friendly, whereas dedicated hosting is a premium choice for enterprises needing maximum performance and reliability.
• Cloud hosting offers a flexible alternative, leveraging multiple servers to balance load, improve redundancy and handle traffic fluctuations.

Introduction

Whenever you reach the resource limits of your shared hosting plan or notice a dip in your website’s speed, it’s time to consider an upgrade.

The most popular upgrade options are virtual private server (VPS) and dedicated server hosting, both of which offer significant performance improvements over shared hosting.

But which of these hosting plans is best for you?

Ultimately, your choice depends on your website needs and hosting budget. Let’s compare VPS vs dedicated server and go over their key differences.

VPS vs. dedicated server: An overview

Both options help solve shared hosting problems, like many websites competing for unevenly distributed server resources, which is a common reason for slow page load times. And sometimes, shared server overload can result in downtime.

However, VPS and dedicated servers offer different ways of combating the limits of shared hosting. Ultimately, the hosting plan you choose will depend on your needs and budget.

Here’s a rundown comparing VPS vs dedicated servers to get you up to speed.

What is VPS hosting?

VPS hosting is a virtualized hosting solution that provides dedicated resources within a shared physical server environment, offering a balance between cost, scalability and performance.

The main difference between shared hosting and VPS hosting relates to server allocation. With shared hosting, you generally don’t get any fixed server resources besides storage space.

This means that if one website on your shared server experiences a traffic spike, its performance may take a hit.

But with Bluehost VPS hosting, you don’t have to worry about how many resources other websites are using because it won’t affect your website’s speed.

A VPS gives you dedicated space on a large physical server that other websites on the server can’t access. This means you’ll have a dedicated amount of CPU power, RAM and NVMe storage.

To protect your resources, we separate server resources using a process called virtualization. This process divides a physical server into multiple virtual machines, which are created and managed by a hypervisor program.

This way, each user has a personal virtual machine and can’t access another virtual machine’s resources (e.g., CPU power, RAM and bandwidth).

Learn more: What is VPS hosting?

What is dedicated hosting?

Dedicated hosting is a web hosting solution where an entire physical server is exclusively allocated to a single user or business.

Unlike shared or VPS hosting, it provides full control over server resources, enhanced security and optimal performance. So, it’s ideal for high-traffic websites and resource-intensive applications.

With Bluehost dedicated hosting, you get AMD EPYC chips and ultra-fast NVMe SSD storage drives, ensuring superior speed and reliability. Additionally, you have full access to a physical server. So, you can serve web content quickly.

If you approach the resource limits of your server, it’s easy to upgrade to a customized server stack (several dedicated servers working together) and optimize your hosting setup.

Our plan offers 8 CPU cores, 32 GB of DDR5 RAM and up to 1 TB of NVMe storage. This is enough for even the most demanding websites.

Learn more: What is dedicated hosting?

Also read: How Much RAM You Need for Dedicated Server

VPS vs dedicated server: How they work

When choosing between VPS and dedicated hosting, understanding how each works is crucial. Both hosting types provide better performance and reliability compared to shared hosting, but they serve different needs.

How does VPS hosting work?

VPS hosting operates by partitioning a physical server into multiple isolated virtual servers using a technology called virtualization.

Each VPS functions as an independent server with dedicated CPU power, RAM, storage and bandwidth. So, your website’s performance is not affected by other websites on the same physical server.

A hypervisor (a software layer) manages these virtual servers and ensures they operate separately, preventing resource conflicts.

Unlike shared hosting, where multiple websites compete for the same resources, VPS hosting guarantees a fixed allocation of resources. This improves speed and reliability.

VPS hosting is an excellent choice for businesses that require better performance than shared hosting but don’t need the full power of a dedicated server. It also allows for scalability, meaning you can easily upgrade your resources as your website grows.

How does dedicated hosting work?

Dedicated hosting provides an entire physical server exclusively for one client. So, you have the highest level of performance, security and customization. Unlike VPS hosting, where a physical server is divided into multiple virtual machines, a dedicated server gives you full control over CPU, RAM, storage and bandwidth.

Because of no resource sharing, dedicated hosting also ensures consistent high-speed performance and maximum uptime. So, it’s ideal for large-scale websites, high-traffic applications and businesses that handle sensitive data.

With dedicated hosting, you can customize the server environment to suit your needs. Also, you can choose the operating system, install custom software, configure security settings and optimize performance based on your specific requirements.

However, managing a dedicated server requires technical expertise or a dedicated IT team. You’ll need to handle tasks like server configuration, security updates and performance optimization.

Bluehost offers fully managed dedicated hosting, where they take care of server maintenance for you.

Also read: Fully Managed Dedicated Server Hosting: What It Is & Why You Need It

VPS vs dedicated server: Comparison table

Here’s a side-by-side comparison of VPS and dedicated hosting to help you quickly understand the key differences:

Feature	VPS hosting	Dedicated hosting
Resource allocation	Shared physical server, but dedicated virtual resources	Entire physical server dedicated to a single user
Performance	High, but may be affected if the host server is overloaded	Superior, with consistent speed and power
Security	Secure, but shares hardware with other users	Maximum security with complete isolation
Customization	Limited control over server settings	Full control over hardware, OS and configurations
Scalability	Easily scalable as business grows	Requires hardware upgrades or multiple servers
Cost	Affordable, mid-range pricing	Expensive, premium hosting
Best for	Small to medium-sized businesses, growing websites	High-traffic websites, enterprises, resource-intensive applications

VPS vs dedicated server: Scaling & performance

When it comes to scalability and performance, VPS and dedicated hosting offer distinct advantages.

VPS hosting

VPS is highly scalable, meaning you can upgrade your resources (CPU, RAM, storage) as your website grows. Since it’s hosted on a shared physical server, you can scale up your plan without migrating to a new server.

But VPS performance depends on the allocated resources and extreme traffic spikes may still cause slowdowns.

Dedicated hosting

Dedicated servers, on the other hand, deliver unmatched performance because all server resources are exclusively yours. This makes them ideal for high-traffic websites, resource-intensive applications and enterprises that need consistent speed and reliability.

However, unlike VPS and cloud hosting, dedicated servers don’t support instant resource scaling. Scaling a dedicated server requires manual hardware upgrades, which can be time-consuming and costly.

Bluehost offers a managed scaling service for dedicated hosting. So, businesses can expand their server capacity with minimal downtime

Bottom line: If your website needs steady, long-term performance with dedicated resources, a dedicated server is the best choice. If you prefer a more flexible, budget-friendly approach that allows you to scale gradually, VPS hosting is a great option.

VPS vs dedicated server: Data security considerations

Security is a crucial factor when choosing between VPS and dedicated hosting, especially for websites handling sensitive data.

VPS hosting

VPS offers better security than shared hosting. It’s because each virtual server is isolated from others on the same physical machine. However, VPS hypervisors can be a potential attack surface, and weak configurations may expose virtual machines to security threats.

Bluehost mitigates these risks with advanced DDoS protection, firewalls, regular security patches and isolated resource environments for every VPS user.

A well-secured VPS with firewalls, DDoS protection and regular security updates can provide a high level of protection.

Also read: Best Practices for Securing Cloud Data with VPS Servers

Dedicated hosting

A dedicated server provides maximum security because you alone user the entire server. This means no risk of cross-site contamination or shared security threats. Dedicated hosting is ideal for websites handling customer transactions, financial data, healthcare records or other confidential information.

Additionally, you have full control over implementing custom security measures, encryption and advanced firewalls tailored to your needs.

Bluehost’s dedicated hosting includes built-in firewalls, RAID storage for data redundancy and automatic daily backups, ensuring data integrity and protection.

Bottom line: If security is your top priority, especially for compliance-heavy industries like eCommerce, dedicated hosting is the safest choice. However, a well-managed VPS hosting with strong security protocols can still be a reliable option for growing businesses.

VPS vs dedicated server: Cost comparison

Cost is a major deciding factor when choosing between VPS and a dedicated hosting account. Both options come at different price points based on their resource allocation.

VPS hosting

VPS is a cost-effective upgrade from shared hosting, offering dedicated resources at a fraction of the price of a dedicated server. Since multiple users share a physical server, the costs are lower.

This makes VPS ideal for smaller websites, medium-sized businesses and startups that need better performance without a hefty investment.

Dedicated hosting

Dedicated servers come at a higher price because you are renting an entire physical server exclusively for your use. This means premium performance, security and customization but also higher operational costs.

Dedicated hosting is best for high-traffic websites, enterprises and resource-heavy applications. They require full server control and maximum uptime.

Bottom line: If you’re looking for affordable scalability, VPS hosting is the better choice. However, if your business requires uncompromised performance and security, a dedicated server is worth the investment.

Also read: When Should I Invest in a Dedicated Server?

VPS vs dedicated server: Uptime and availability

Website uptime is crucial for maintaining reliability, user experience and search engine rankings. Both VPS and dedicated hosting offer better uptime than shared hosting. But they differ in consistency and redundancy.

VPS hosting

VPS provides high uptime as long as the hosting provider maintains the physical server well. However, since multiple virtual servers share the same hardware, any hardware failure or resource contention can impact availability.

Many VPS providers offer uptime guarantees of 99.9% or higher. But performance may still fluctuate if the host system experiences issues.

Dedicated hosting

Dedicated servers offer the highest level of uptime and availability because you don’t share resources with other users. This ensures consistent performance, faster load times and reduced downtime risks.

Additionally, dedicated hosting often includes redundant power supplies, RAID storage and failover solutions to enhance stability.

Bottom line: If your website relies on consistent uptime and availability, dedicated hosting is the most reliable choice. VPS hosting is still a solid option for businesses needing high availability on a budget. But it may have slight performance fluctuations in extreme scenarios.

What are the pros and cons of dedicated server vs. VPS hosting?

Before making a decision, it’s important to weigh the advantages and disadvantages of both VPS and dedicated hosting.

Advantages and disadvantages of VPS hosting

While VPS hosting outperforms shared hosting, it may not meet the specific needs of some websites. Here’s how VPS hosting measures up against other web hosting plans.

Advantages

• Price: VPS hosting is substantially cheaper than dedicated hosting. So, if you’re on a limited hosting budget but have outgrown your shared hosting setup, VPS hosting can be a great option for you. At Bluehost, our standard VPS plan starts at $46.99/month*. Note: The pricing mentioned is updated as of March 2025. For the latest rates, please check our VPS hosting plans.
• Scalability: VPS hosting is more scalable than shared hosting. While dedicated hosting can be scalable, scaling with VPS hosting is usually more straightforward.
• Setup: While some technical expertise is involved, configuring VPS hosting generally requires less technical experience than dedicated hosting.

Disadvantages

• Limited control: A VPS provides much more control than shared hosting but not as much as dedicated hosting. Bluehost gives you root access to your VPS.
• Security vulnerabilities: With a VPS, virtualization technology provides more robust protection than shared hosting. Security breaches do happen in VPS, but the risk is significantly lower than with shared hosting. If you’re worried about the security of your VPS-hosted website, you can take some additional preemptive steps to protect your business.

Advantages and disadvantages of dedicated hosting

Fully dedicated servers are great for high-growth enterprises, but they won’t be the best option for every business. Here are a few benefits of choosing dedicated server hosting over shared hosting and some drawbacks to consider.

Advantages

• Performance: Dedicated servers are the ultimate hosting option if you value high performance. With all server hardware resources dedicated to your website, the speed and functionality of resource-heavy web apps can be optimized to enhance your website’s performance.
• Robust security: A dedicated server can be your best option if you operate a business with a lot of sensitive customer data. Dedicated hosting provides the ultimate protection because your website doesn’t share physical server space with strangers. And you can fully configure your security settings.
• Control: If you’re ready to assume the responsibility of full server control, then dedicated hosting has what you need. For example, you can tweak your server architecture to improve the performance of your website or install a firewall as part of a customized security solution. Bluehost provides improved cPanel access and full control of your server operating system, such as Linux.

Disadvantages

• Price: Dedicated hosting is a costly option that may not fit some website owners’ budget. If you’ve outgrown shared hosting, but your business is still finding its feet financially, then VPS solutions might be more cost-effective.
• Scalability: While dedicated hosting provides additional resources for your website, it’s not as scalable as VPS hosting or cloud hosting. That said, dedicated servers can be scaled up by creating server clusters.
• Technical skill requirements: With dedicated hosting, you generally need to manage your server’s resources yourself. If no one at your business has the expertise required to handle your server’s resources, you may need to opt for a fully managed dedicated hosting plan.

When to choose a dedicated server vs VPS hosting?

Choosing between VPS and dedicated hosting depends on your website’s needs, budget and growth expectations. Here’s when each option makes the most sense:

Choose VPS hosting if

• You need better performance than shared hosting but don’t require an entire server.
• Your website is growing, and you want an affordable way to scale up.
• You run a small to medium-sized business or a high-traffic blog.
• You don’t have advanced technical expertise and prefer a managed hosting plan.
• Your budget is limited, and you want cost-effective dedicated resources.

Choose dedicated hosting if

• Your website receives high traffic or runs resource-intensive applications (e.g., large eCommerce stores, SaaS platforms, gaming servers).
• Security is a top priority, especially for sites handling sensitive user data (finance, healthcare, etc.).
• You require maximum performance and server reliability for uninterrupted operations.
• You need full control over hardware configurations and customization.
• Your business is established and has the budget for premium hosting.

Cloud hosting as a flexible alternative

While you’re comparing the benefits of VPS and dedicated hosting to shared hosting, it’s worth exploring cloud hosting. This modern alternative option harnesses the power of multiple interconnected servers to provide scalability, reliability and efficient resource management.

Unlike dedicated hosting, which reserves a single server’s resources for your website, or VPS, which allocates a portion of a server, cloud hosting operates across a wide network of virtual servers. This ensures increased availability, redundancy and the ability to handle fluctuations in traffic smoothly.

Bluehost’s cloud hosting automatically balances traffic loads across multiple servers, ensuring optimal uptime and performance. This makes it an ideal choice for businesses with unpredictable traffic.

Unlike dedicated hosting, which requires manual scaling, Bluehost’s cloud infrastructure allows auto-scaling to meet sudden spikes in demand.

Here’s a detailed comparison table for Bluehost Cloud hosting vs. VPS hosting vs. dedicated hosting to help you choose the right option:

Feature	Bluehost cloud hosting	Bluehost VPS hosting	Bluehost dedicated hosting
Performance	High availability with load balancing; handles traffic surges efficiently.	Good performance with dedicated resources but still shared within a physical server.	Unmatched performance with exclusive access to all server resources.
Scalability	Highly scalable; resources are distributed across multiple servers.	Easily scalable; upgrade CPU, RAM and storage without migrating.	Easily scale by upgrading to the next plan.
Resource allocation	Resources are dynamically allocated across multiple servers.	Dedicated CPU, RAM and storage within a shared physical server.	Full control over all hardware resources.
Reliability	High uptime with automatic failover—if one server fails, another takes over.	Reliable but can be affected by extreme traffic spikes.	Most reliable with 100% dedicated resources and minimal downtime.
Cost (for 12-month plan)	Starts at $49.99/month*	Starts at $44.99/month*	Starts at $142.79/month*
Best for	Businesses needing high availability, redundancy and scalability.	Small to medium businesses, growing websites and those needing a balance of performance and cost.	Large enterprises, high-traffic websites and applications requiring maximum power and control.

How to make the VPS vs dedicated server decision?

Still wondering, should you upgrade to VPS or dedicated hosting? Here are five key factors to consider when deciding between VPS and dedicated hosting:

1. How important is website speed to you?
2. What is your budget?
3. How much traffic does your website get?
4. What type of website do you operate?
5. What is your technical skill level?

How important is website speed to you?

Speed may not be a top priority for a one-page informational website that only provides your business’s contact information. But if your business transactions depend on quick loading times, a dedicated server can pay for itself.

For example, if you run an eCommerce store, a dedicated server can give your customers a smooth path to the checkout page and increase brand loyalty.

What is your budget?

If your online business is seeing an uptick in traffic but is still low, your budget may not stretch to dedicated hosting. In this case, a VPS might be your best choice until your profit margins increase.

How much traffic does your website get?

A dedicated plan isn’t the best option if your website has moderate traffic or only sees seasonal visitor spikes. Take a realistic look at your web traffic data to ensure you get what you need, plus some room to scale.

What type of website do you operate?

If your website has various complex applications, you can benefit from the unrivaled resources of a dedicated server. Also, if your website handles sensitive customer data, it makes more sense to get a dedicated server from the get-go, especially for safeguarding this sensitive information against potential security threats.

What is your technical skill level?

Configuring a VPS or dedicated server is no walk in the park. To reap the benefits of these web hosting types, you’ll need a great deal of technical know-how or a trusted IT team to set up and monitor your web server environment.

Final thoughts

Choosing between VPS vs dedicated server hosting depends on your website’s needs, budget and technical expertise. If you need an affordable yet scalable solution, a VPS is a great choice. However, if you require maximum performance, security and full control, a dedicated server is the way to go.

If shared hosting is limiting your growth or exposing your business to security risks, it’s time to upgrade. Whether you need a reliable environment for your high-traffic blog or a powerhouse for your expanding eCommerce store, Bluehost has the perfect hosting solution for you.

Explore our VPS hosting plans and dedicated hosting plans today and take full control of your server resources. Need help choosing the right plan? Our expert support team is here to guide you every step of the way!

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