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The primary disadvantage to using a VPS is its lack of performance. The organization that provides the VPS will typically throttle the server's performance in an effort to maximize the number of VPSs that the physical server is able to accommodate. In the unlikely event that the VPS's performance is not throttled, it then becomes possible for an adjacent VPS to consume excessive resources, to the point of impacting the VPS's performance.
You can move corporate applications to the cloud, launch additional web servers, or add more compute capacity to your network by connecting your VPC to your corporate network. Because your VPC can be hosted behind your corporate firewall, you can seamlessly move your IT resources into the cloud without changing how your users access these applications. You can select "VPC with a Private Subnet Only and Hardware VPN Access" from the Amazon VPC console wizard to create a VPC that supports this use case.
Another benefit of virtualizing servers is that they are no longer tied to a hardware platform. This provides the ability to virtually expand or upgrade (upgrade) the hardware platform during operation without significant downtime (~ 1 second downtime). Also, a hardware problem does not result in longer downtime (assuming existing spare capacity) because the VPS can be restarted quickly on a different hardware.
A VPS runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes they are functionally equivalent to a dedicated physical server, and being software-defined, are able to be much more easily created and configured. They are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other VPSes, performance may be lower, depending on the workload of any other executing virtual machines.