What is VPS Hosting? Complete Guide to Virtual Private Servers

Key highlights:

• VPS hosting provides exclusive server resources for better performance and stability.
• Easily upgrade resources as your website or application grows in demand.
• VPS offers root access, enabling advanced customization and software installation.
• VPS balances affordability with dedicated resources, ideal for growing businesses.
• Isolated environments protect data, reducing risk of security issues from other users.

Introduction

As your website grows, so do its hosting needs. Most small businesses start their websites off on a shared web hosting plan. However, there will come a time when your website outgrows a shared hosting solution. If shared hosting no longer meets your site’s demands but dedicated hosting seems out of reach, it may be time to consider VPS hosting.

VPS or Virtual Private Server hosting, strikes a balance between cost and performance by providing users with dedicated resources within a shared environment. This unique setup gives your site the power and flexibility it needs to handle increased traffic, custom applications and enhanced security.

To help you find the best hosting solution for your website, this guide will walk you through everything you need to know about VPS hosting. Whether you’re a business owner, developer or blogger, understanding VPS hosting can be the key to unlocking your site’s potential. Let’s dive in and explore the world of Virtual Private Servers and what they can do for you! 

What is VPS hosting?

VPS Hosting (Virtual Private Server Hosting) is a web hosting solution designed to offer a middle ground between shared and dedicated hosting. Utilizing virtualization technology, VPS hosting partitions a single physical server into multiple isolated virtual servers, each of which operates independently.

In this setup, each virtual private server (VPS) has its own allocated resources, including CPU, RAM, storage and often its own operating system, allowing it to function like a mini-dedicated server. This structure gives users more control over their hosting environment compared to shared hosting, where resources are pooled among many users.

Unlike shared hosting, where all websites share the same resources on a single server, VPS hosting provides each user with dedicated resources, ensuring that one VPS user’s activities do not impact others. This dedicated environment is particularly beneficial for websites with moderate to high traffic or those that require custom configurations and additional control over their hosting environment without the full expense of a dedicated server.

Because of its flexible nature, VPS hosting is ideal for growing websites and applications that have outgrown shared hosting but aren’t yet ready for a dedicated server’s capacity or cost. The virtualization aspect of VPS hosting creates a balance between cost and performance, giving users more control and stability over their resources.

Key components of VPS hosting 

• Virtual private server (VPS): A virtual machine that mimics a dedicated server within a shared hosting environment. It is the backbone of VPS hosting, allowing a single physical server to operate as multiple independent virtual servers. 
• Virtualization technology: Software that creates and manages virtual servers on a physical server. 
• Dedicated resources: Each VPS has its own CPU, RAM, disk space and bandwidth, allowing better performance and control over server resources. 
• Operating system choice: Users can choose their preferred OS, often between popular options like Linux and Windows.
• Root access: Full administrative access to the server, allowing complete control over configurations and installations. VPS hosting often includes root access, enabling users to install custom software, modify configurations and have greater control over their environment. 
• Physical server: The actual hardware that hosts multiple VPS instances. 

How VPS hosting works

VPS hosting uses virtualization technology to split one server into multiple virtual servers. 

Hosting companies use a hypervisor (or a virtual machine monitor, VMM), specialized software that simulates and creates different virtual machines (VMs), also called guests. 

The hypervisor splits a host server into separate virtual parts on top of its operating system (OS). This enables the server to support other guests — allowing them to install their own software and their own OS. 

In a nutshell, virtualization works to give users sharing one server the illusion of private space. Thus, the name “virtual private server.” 

VPS works differently from shared hosting.

Every time a website overuses the shared server’s resources, it negatively affects another website’s performance. But that’s not the case with the VPS servers. 

With VPS hosting, your virtual server has allocated specific resources such as CPU, RAM, and storage. While these resources are shared with other virtual servers on the same physical machine, your allocation allows for more consistent performance compared to shared hosting. This isolation helps ensure that your website’s performance is less affected by other users on the same server. 

Common use cases for VPS hosting 

VPS hosting caters to a wide range of applications, making it a versatile choice for various website types. Some of the common applications include: 

• eCommerce sites: These sites need high security and consistent uptime, which VPS hosting can provide. VPS hosting provides the necessary resources and security features to handle online transactions and manage product inventories efficiently. 
• Hight traffic blogs and content sites: As traffic increases, VPS can handle more visitors with reliable performance. 
• Web applications: Applications with custom software requirements can benefit from the flexibility of VPS hosting. 
• SaaS platforms: Software as a Service (SaaS) platforms benefit from VPS hosting’s scalability and reliability, ensuring seamless service delivery to users. 
• Business sites requiring secure data handling: VPS’s dedicated resources offer better protection for sensitive business information. 
• Development and testing environments: VPS hosting offers isolated environments for developers to test new features, perform experiments and develop applications without affecting the live website. 

VPS hosting compared to other types of hosting providers

VPS hosting stands out among several hosting options, each with its own set of advantages and limitations. Let’s compare VPS hosting to some other common types of hosting to help you make an informed decision: 

Comparison parameters	Shared hosting	VPS hosting	Dedicated hosting	Cloud hosting	Managed WordPress hosting
Best for	Beginners to advanced users, such as eCommerce website owners and those who have outgrown shared hosting.	Growing sites and small-scale businesses, such as, eCommerce website owners and those who have outgrown shared hosting.	Advanced users, enterprise-scale websites that receive a lot of traffic and are resource-intensive.	Rapidly growing websites, businesses	WordPress sites needing easy setup
Performance (storage and bandwidth)	Basic	Moderate to high	Very High	High	Optimized for WP
Security	Low	Moderate to high	High	High	High
Customizability	Limited	Moderate	High	Highly scalable	Limited to WP sites
Costs	Low	Moderate	High	Varies (pay-as-you-go)	Moderate to High
Control	Limited control, managed by provider	Full root access and server customization	Full control over the server	High control with cloud management tools	Limited to WordPress configurations
Resource allocation	Shared resources	Dedicated resources (CPU, RAM, storage)	Entire server dedicated to one user	Scalable resources across multiple servers	Optimized resources for WordPress
Ease of use	User-friendly, easy to manage	Requires technical knowledge for management	Requires technical expertise	Varies, can be complex depending on setup	Very user-friendly, managed by the provider

Shared hosting vs. VPS hosting:

Shared hosting: In shared hosting, multiple websites operate on the same server, sharing resources like CPU, RAM, storage and bandwidth. This makes shared hosting one of the most budget-friendly options. However, because resources are shared, your website’s performance can be impacted by other sites on the server, especially if they experience high traffic spikes. This setup works well for smaller sites and personal blogs but may not support high-demand websites that need consistent speed and performance. 

VPS hosting: VPS hosting provides a dedicated virtual environment within a larger physical server. This isolation ensures your site has its own allocated resources, meaning your site’s performance is less likely to be affected by others on the server. This setup is an ideal next step for websites that have outgrown shared hosting but don’t yet need a full dedicated server. It offers greater performance, control and reliability than shared hosting at a moderate cost.

Dedicated hosting vs. VPS hosting:

Dedicated hosting: Dedicated hosting provides a complete physical server dedicated exclusively to your website or applications. This setup allows for top-notch performance, full control over the server and the highest level of security. It’s especially useful for high-traffic websites or complex applications where stability and security are non-negotiable. However, this comes at a premium price and may be excessive for smaller sites or those with lower traffic levels. 

VPS hosting: VPS hosting serves as a middle-ground solution, offering dedicated resources within a shared physical server through virtualization. While not as powerful as a dedicated server, VPS hosting provides a level of control and performance that’s significantly greater than shared hosting. For websites that require solid performance but aren’t quite ready to commit to the cost of a dedicated server, VPS hosting offers a balance of cost-effectiveness and resource allocation. 

Managed WordPress hosting vs. VPS hosting 

Managed WordPress hosting: Managed WordPress hosting is specifically optimized for WordPress websites, offering features like automated backups, updates, security enhancements and a tailored WordPress support team. This option is great for users who want to focus on their content or business without handling server management tasks. Managed WordPress hosting tends to be more streamlined and user-friendly, with performance tweaks specifically for WordPress, but it may lack the customization that more advanced users seek. 

VPS hosting: VPS hosting provides a customizable virtual environment that allows full control over server settings and software installations, making it an excellent option for advanced users or those with custom configurations. While VPS hosting can support WordPress, it requires more manual setup and maintenance compared to managed WordPress hosting. For those who prefer flexibility and control and are comfortable managing their own server configurations, VPS hosting offers a powerful solution. 

Cloud hosting vs. VPS hosting:  

Cloud hosting: Cloud hosting operates across a network of virtual servers that pull resources from multiple physical servers. This structure provides exceptional flexibility and scalability, making it perfect for websites with varying or unpredictable traffic. If one server in the network experiences issues, your site can seamlessly switch to another, minimizing downtime. Cloud hosting’s distributed nature allows it to scale resources up or down as needed, accommodating growth and maintaining performance during traffic surges.     

Also read: Cloud Hosting vs. VPS Hosting: What You Need To Know Before Deciding

VPS hosting: VPS offers customers their own virtual server environment, complete with their own operating system and full control over configurations and software installations. This offers you a stable and isolated environment that boosts site performance, which is ideal for websites with consistent traffic levels. On the other hand, cloud hosting stands out for its incredible flexibility because it allows resources to scale up or down instantly based on your site’s demand. This makes cloud hosting a perfect match for websites that experience frequent traffic fluctuations or have growing needs. It adapts quickly and efficiently and ensures smooth performance across different loads. Both options offer significant control and security, but cloud hosting’s ability to handle large-scale and rapid changes gives it an edge in dynamic scenarios.  Since Bluehost offers Cloud hosting, here’s an overview of the plans:  

What is VPS hosting used for?

VPS hosting is used for eCommerce websites, software-as-a-service (SaaS) providers, agencies, programmers and developers that build more than one website. Basically, you should consider VPS hosting if a shared hosting plan doesn’t give you the resources you need for your website. 

VPS hosting is a great option for these types of websites, as it offers: 

• A secure backup environment. 
• File storage that’s accessible anywhere in the world. 
• Support for email hosting and cloud-based hosting. 

Types of VPS hosting

There are three main types to choose from: fully managed VPS hosting, unmanaged VPS hosting, and semi-managed VPS. Knowing the differences between the three will help you choose the best option for your website. 

Fully managed VPS:

With a fully managed VPS, the web hosting provider manages everything. This option is best for busy teams or companies without IT support, as the web host does everything for you. 

Pros of fully managed VPS:

• The web hosting service handles all your technical needs, including server maintenance, updates, monitoring and security.
• Plans come with technical support.

Cons of fully managed VPS:

• It’s more expensive because you’re paying for the expertise and convenience.
• You have limited customization options because the hosting company decides the server configuration and specification.
• Installing software may require approval from the administrator.

Best for:

• Teams that lack the technical knowledge and experience to run their servers.
• Website owners that don’t have a developer/server administrator.

Unmanaged VPS:

Also known as self-managed VPS, users have full control over unmanaged VPSs. The hosting company is only responsible for providing the physical servers. 

Pros of unmanaged VPS:

• You can freely customize your server — there’s no need to wait if you want to install something.
• It’s cheaper than a managed VPS.

Cons of unmanaged VPS:

• You must troubleshoot any issues yourself if you run into trouble.
• You may require additional assistance if your server administrator isn’t experienced.

Best for: 

• Teams with enough technical knowledge and experience to run their servers.

Semi-managed VPS hosting:

Semi-managed VPS hosting strikes a balance between user control and hosting provider assistance. In this hosting type, the provider takes care of essential server management tasks, such as hardware maintenance and security updates, while users handle day-to-day server administration, including software installations and configurations. 

Pros of semi-managed VPS:

• Users receive valuable support for server maintenance and infrastructure, reducing the burden of complex tasks.
• You have greater control over your server’s software, allowing you to tailor it to your specific needs.
• Typically, more affordable than fully managed hosting due to the shared responsibilities.

Cons of semi-managed:

• Users still need a good understanding of server administration, which may be challenging for beginners.
• Some technical issues may require the user’s intervention, which can be a drawback for those seeking a hands-off hosting experience.

Best for:

• It is a good fit for users who have some experience with server administration but may not be experts. 

How secure is VPS hosting? 

Virtual Private Server (VPS) hosting provides a high level of security, making it an appealing choice for users seeking reliable and safe hosting solutions. With VPS hosting, your website operates in a private virtual environment within a larger physical server.  

Unlike shared hosting, where resources and security vulnerabilities are shared with other users, VPS hosting partitions off a dedicated portion of the server, creating an isolated space solely for your website.  

Here are the primary factors that contribute to the security of VPS hosting: 

• Dedicated resources: With a VPS, your website operates in its own environment, isolated from others, which prevents interference and risks from neighboring sites. 
• Root access control: VPS hosting grants root access, enabling users to customize their server settings, install security software and control access protocols. 
• Virtualization technology: Virtualization creates distinct partitions, isolating each VPS instance and preventing unauthorized access from other users on the same server. 
• Customizable firewall: Many VPS plans allow for customized firewall configurations, providing an additional layer of security to protect against attacks. 
• DDoS protection: Many VPS providers offer DDoS protection, shielding websites from malicious traffic surges that could lead to downtime. 
• Automatic backups: Scheduled backups safeguard data against potential breaches, system failures or user errors, ensuring swift recovery in the event of an issue. 
• Regular security patches: VPS hosting providers often offer regular updates and patches for operating systems and server applications to protect against vulnerabilities. 
• SSL certificate compatibility: VPS hosting makes it easy to install SSL certificates, which encrypt data between the server and end users, enhancing data security. 
• Enhanced monitoring: VPS hosting includes advanced monitoring tools that detect unusual activity, enabling timely responses to potential threats. 
• Secure login protocols: SSH access for Linux servers or RDP for Windows-based VPS helps secure logins, making it harder for unauthorized users to gain access. 

While VPS hosting offers greater security, users should still regularly update software, monitor activity and ensure strong passwords to maximize protection. 

Overall Virtual Private Server pros and cons:

Pros of VPS hosting:

• Enhanced performance: Offers users their own virtual server environment, complete with their own operating system and full control over configurations and software installations. 
• Isolation: Each VPS operates independently, preventing resource interference from other users, and reducing the “noisy neighbor” problem. 
• Scalability: Easily adjust server resources as your website grows, avoiding over-provisioning or downtime. 
• Control: Users often have root access, allowing complete customization of server configurations and software installations. 
• Security: Isolation and dedicated resources enhance security, reducing the risk of breaches common in shared hosting. 

Cons of VPS hosting:

• Technical knowledge: Managing a VPS may require some server administration skills, which can be challenging for beginners. 
• Cost: VPS hosting is costlier than shared hosting, making it less budget-friendly for some users. 
• Resource limits: While more powerful than shared hosting, VPS still has resource constraints, which may be insufficient for resource-intensive applications. 
• Responsibility: Semi-managed and unmanaged VPS hosting requires users to handle server maintenance, updates, and security, which can be time-consuming. 
• Complexity: Fully managed VPS hosting can be expensive and limits users’ control over server configurations.

How to choose the best VPS plan?

Now that you know what VPS hosting is and why you should upgrade, here’s what you should consider when choosing the best VPS plan. 

• Technical skills: Considering your team’s technical skills will help you choose the right VPS hosting type. If you want to do things yourself, get an unmanaged VPS plan. But if you’d appreciate an expert handling the technical side of running a server, a fully managed VPS plan is right for you. 
• Ease of use: Ensure that the VPS plan you choose has a user-friendly dashboard or interface such as cPanel to simplify your server management. It should also have a one-click app installer so you can install applications effortlessly.   
• Technology compatibility: The VPS hosting plan should be compatible with your OS. For example, your VPS host should support Windows if you’re running on Windows. Some VPS plans support multiple OSs, while others don’t. Ask a sales or customer support staff member before signing up for a plan, as some hosting companies do not post this info. Bluehost’s VPS plans run on CentOS, which is a Linux distribution. These plans don’t support non-Linux operating systems. 
• Root access availability: Root access refers to the authority given to users to control and customize the server. If you’re getting a fully managed plan, there’s no need to concern yourself with root access availability since a technician will handle everything for you. Bluehost plans offer complete root access for VPS and dedicated hosting plans. 
• Dedicated IP address: Having a dedicated IP address provides a unique, private web address for your site.  Bluehost provides a free dedicated IP address with their VPS and dedicated hosting plans.  
• Storage and bandwidth: Choose a plan based on the storage and bandwidth you need right now — you can always upgrade later. 

Bluehost has three tiers of VPS plans. All plans come with unmetered bandwidth but differ in RAM and solid-state drive (SSD) storage. The lowest-tiered Standard plan starts with 4 GB DDR5 RAM and 100 NVMe Storage, the Enhanced plan offers 8GB DDR5 RAM and 200GB NVMe Storage. Lastly, at the top end, the Ultimate plan offers 16 GB DDR5 RAM and 450GB NVMe Storage. 

Here is other information on its features: 

• Latest Generation Hardware 
  • AMD EPYC 9004 series CPU Chips 
  • DDR5 Memory 
  • Ultra-fast NVMe SSD Storage Drives 
  • PCIe 5.0 – High speed data transfer between components 

• 10 Gbps Network with Unmetered Bandwidth: Ensures high-speed connectivity and unlimited data transfer, ideal for high-traffic websites and applications. 
• Easily Scalable Plans: Easily upgrade to the next plan for additional resources. 

• High uptime: What good are high storage and bandwidth when your website experiences constant downtime? A frequently offline website can lead to lost productivity and missed opportunities. 
   
  Your web hosting provider’s uptime should be as close to 100% as possible. Bluehost has an uptime of 99.9%. 
  
• Cost: VPS hosting plans are generally more expensive than shared options. However, VPS is a cost-effective alternative to dedicated hosting. Compare different hosting plans to ensure you get your money’s worth. For example, look at the number of CPU cores and the amount of RAM. 
   
  At the least, servers should use the latest storage technology (e.g., NVMes), making it easy to run heavy applications faster. 
  
• Customer support: Getting timely assistance is crucial, especially when something goes wrong with the server. 
   
  Bluehost offers 24/7 customer and technical support over the phone, email, and live chat. You’ll also get a guided server setup or onboarding call to help you get started smoothly. Lastly, all VPS plans have a free migration service and cPanel license included. 

Benefits of VPS hosting

Storage and bandwidth 

VPS hosting allocates a specific amount of storage and bandwidth per web server for each user. This ensures you’ll have enough resources to run your website.  

Server control 

In shared hosting plans, users typically have limited access to the server environment. This is because the hosting provider sets the conditions and parameters for the plan. For example, website owners on a shared plan cannot reconfigure their server settings.  

VPS hosting provides you with complete control over the server, allowing you to:  

1. Install custom software or applications.  
2. Configure the website infrastructure.  
3. Add security features.  
4. As a trade-off, you’re in charge of maintaining and upgrading resources if you go with an unmanaged VPS plan (more on that later).  

Customizable server environment 

A VPS allows users to install a preferred operating system and specific applications, giving full customization over the hosting environment. Whether you require unique server configurations or special software, VPS hosting can accommodate it, creating an optimal setup for your website’s needs. 

Root access and control panel options 

With VPS hosting, users gain root access to the server, offering complete administrative control over their hosting environment. This level of access is crucial for advanced users who need to configure server applications, manage files directly and install or remove software. Most VPS providers also offer control panels, such as cPanel or Plesk, for easier management. 

Control over server configuration 

With VPS hosting, you control your server configuration. This capability allows you to manage software updates, install applications and adjust server settings, which is ideal for advanced users requiring custom setups for specific applications or performance optimizations. 

Reliability 

VPS hosting rarely relies on a single server.  

Thanks to virtualization, servers are made up of multiple nodes. So, if one node crashes, there is still a backup. This is a great feature for eCommerce websites, as downtime can be costly.  

Using a virtual private server guarantees high performance by eliminating risks, such as suddenly running out of storage, which commonly happens when you use shared hosting.  

Resilience against high traffic and demand 

The infrastructure behind VPS hosting can handle high traffic and resource demand better than shared hosting environments. This resilience makes VPS ideal for websites expecting growth or seasonal traffic spikes, where stable performance and quick response times are critical. 

Better performance for high-traffic websites 

For websites experiencing higher traffic, VPS hosting offers reliable performance without the limitations of shared hosting. By having dedicated resources, your website can handle traffic spikes more effectively, ensuring a smooth experience for visitors and reducing bounce rates. 

Flexible hosting solutions 

VPS hosting suits various use cases, from eCommerce websites needing security and scalability to applications requiring custom server configurations. The flexibility of VPS hosting allows you to adapt your server setup according to your needs, making it a versatile choice for many industries. 

Privacy and security 

VPS hosting is more secure than standard shared hosting because of the virtual partitions that separate websites from each other. Users have less risk of “contamination” from compromised sites because the other websites are isolated from each other.  

With a VPS hosting provider, you have more control over your website’s security. However, some web hosting providers also offer essential security features or may assist with maintenance. For example, Bluehost includes free SSL certificates and DDoS protection on VPS plans. In addition, it also offers weekly offsite backups to protect your data against loss or corruption.  

Adaptable scalability 

Flexibility and scalability are some of the best benefits of VPS hosting.  

Whenever you need additional resources, you can easily add or borrow from another VPS if needed. This easy scalability is thanks to the hypervisor, which enables the host computer to support other servers and virtual machines by sharing its resources.  

Dedicated resources 

Each VPS provides dedicated resources, including CPU, RAM and disk space, unlike shared hosting, where resources are shared among users. This setup ensures that your website’s performance isn’t impacted by other sites on the same physical server, resulting in faster loading times and a more stable user experience. 

Isolation from other websites 

A VPS is isolated from other virtual servers, meaning your website operates in a dedicated environment. This reduces the risk of server errors caused by neighboring sites, a common issue in shared hosting. This isolation is critical for business websites where performance and security are priorities. 

Cost-efficiency compared to dedicated hosting   

While VPS hosting is more expensive than shared hosting, it remains more cost-effective than a dedicated server, where you pay for an entire physical server. VPS hosting strikes a balance by offering dedicated resources on a virtual machine at a fraction of the cost, making it an economical solution for those seeking greater control and performance without the high expense of dedicated servers. 

Enhanced technical support 

Most VPS hosting providers offer dedicated technical support for managed VPS plans, helping with server management and troubleshooting. For businesses without in-house technical expertise, managed VPS hosting is invaluable, as it includes maintenance and updates, allowing you to focus on growing your website.

Summing up: What is VPS hosting and how does it work?

VPS hosting plans are a great way to get more website security, storage, control and bandwidth without the hefty price tag of a dedicated server. But it’s crucial to choose the best VPS plan for your needs. 

If you’re pressed for time and would rather have a professional handle your server, choose a fully managed VPS plan. 

If you’re familiar with server configurations and want to customize your settings, sign up for unmanaged VPS like we offer at Bluehost. Our VPS hosting plans offer unlimited bandwidth and domains, reliable SSD storage and 24/7 customer support. Contact us today to get started. 

FAQs about VPS hosting