What is Claude Code? A Complete Overview

Artificial intelligence is revolutionizing software development. If you've heard about Claude Code, Anthropic's AI coding assistant, but aren't sure what it is or how it can help you code better, this guide simplifies everything to help you get started.

What is Claude Code?

Claude Code is Anthropic's agentic coding tool. It runs from your terminal, reads your working directory as context automatically, and can write code, debug issues, and navigate your codebase from plain-English instructions—without you needing to copy and paste code into a chat window.

How Can You Get Claude Code?

You can install Claude Code on a Self-Managed VPS or Virtual Dedicated Server (VDS) from Bluehost. This gives Claude Code direct terminal access to your own server environment and codebase, so you can run it against your projects without exposing your source code to a third-party development environment. Claude Code itself still communicates with an LLM provider's API to perform the AI processing—installing it on your VPS/VDS puts your codebase and development environment under your control, not the underlying AI model.

To connect Claude Code to a model, you have two options. You can authenticate directly with Anthropic using a Claude Pro, Max, Team, or Enterprise subscription, or an Anthropic API key billed separately by usage—check Anthropic's current plans for details. Alternatively, you can connect Claude Code through the Bluehost AI Gateway, which lets you pay for model usage with a prepaid AI Credits balance billed through your Bluehost account instead of managing a separate Anthropic account. See Purchase AI Credits, AI Models and Credit Pricing, and Understanding AI Credits for how the gateway works and how credits are priced and consumed.

Setting Up Claude Code

Whether you're new to VPS/VDS management or an experienced sysadmin, Bluehost provides detailed installation guides and support to help you install and configure Claude Code quickly and securely. Please visit the Reimage Your Server for Claude Code Installation article.

How Can Claude Code Help You? Practical Uses

Claude Code assists developers in many ways, including:

Code Generation: Automatically generate boilerplate code, functions, or scripts based on natural language prompts.
Example: A developer quickly scaffolds a REST API endpoint using Claude Code's generation feature.
Code Review and Debugging: Identify bugs, suggest fixes, and improve code quality.
Example: Claude Code scans a pull request and highlights potential errors and optimization tips.
Documentation: Generate clear, concise documentation from code comments or design specs.
Example: A team automates generating README files and inline code docs for easier maintenance.
Learning and Onboarding: Help new developers understand complex codebases with explanations and examples.
Example: Junior developers use Claude Code to get step-by-step guidance on unfamiliar frameworks.
Multi-language Support: Assist across popular programming languages, including Python, JavaScript, Java, and more.
Example: A polyglot team leverages Claude Code to maintain best practices in diverse projects.

With Claude Code running on your Self-Managed VPS or Virtual Dedicated Server (VDS), your source code and project files stay on infrastructure you control.

Why Choose Claude Code?

Deploying Claude Code on your Bluehost VPS or VDS offers:

Codebase Control: Your source code and project files stay on your own server rather than being uploaded to a separate hosted environment.
Server Customization: Configure the underlying VPS/VDS environment—OS, dependencies, and access rules—around how your team works.
Performance optimized by running on dedicated resources.
Enhanced Security since your development environment sits behind your own server's firewall and access controls.

Potential Challenges When Using Claude Code

While Claude Code provides robust assistance, users should be aware of some challenges:

Technical Installation: Setting up Claude Code requires familiarity with server administration and command-line tools.
Resource Requirements: Claude Code runs fine on modest hardware, but heavier, multi-step coding tasks benefit from more vCPUs and RAM. See the Claude Code Hosting page for Bluehost's recommended VPS/VDS tier.
Maintenance Responsibilities: Updates, backups, and security patches must be managed regularly.
Learning Curve: Optimizing prompts and workflows may require time and experimentation.

Security Best Practices for Running Claude Code

To safeguard your code and environment, consider these best practices:

Regular Backups: Maintain frequent backups of your code and server data.
Strong Access Controls: Use secure authentication and restrict server access to trusted users.
Encryption: Use SSL/TLS for all communications and encrypt sensitive data at rest.
Timely Updates: Keep your server OS, Node.js, Claude Code, and dependencies up to date.
Monitoring: Implement tools to monitor server health and detect suspicious activities early.

Comparing Claude Code to Other AI Coding Assistants

Claude Code offers unique advantages such as:

Codebase-Native Workflow: Unlike browser-based assistants where you copy and paste code into a chat, Claude Code works directly against the files in your working directory—no uploading required.
Wide Language Support: Supports multiple programming languages and frameworks.
Server-Level Customization: Running it on your own VPS/VDS lets you tune the surrounding environment—dependencies, access rules, and integrations—to your workflow.

Running Claude Code on a self-managed VPS or VDS suits teams who want their codebase and development environment on infrastructure they control.

Summary

Claude Code, made by Anthropic, is a terminal-based AI coding assistant that can help you generate, review, and improve code directly against your own codebase. By installing it on a Bluehost Self-Managed VPS or Virtual Dedicated Server (VDS), you keep your source code and development environment on infrastructure you control.