The most obvious and popular reason for a VPS is to run a single website, or multiple websites. However, you can use them for pretty much anything that requires access to the internet – such as a web application like Nextcloud to run your own Dropbox alternative – or to create your own virtual private network to better secure the internet connection of your PCs and mobile devices.
VPS, on the other hand, is an isolated playground specifically for you. You will be able to install and use any professional software you need. It also provides more opportunities for caching the content. Imagine that you implement caching tools to provide your users with better experience and reduce the loading time of your website. Caching means that the part of requests to your website will be processed using RAM instead of a hard drive. Eventually, RAM will be filled with these requests. Since VPS deals offer more RAM then shared packages, you will get better performance using caching.
VMware is also extremely popular in enterprise IT for virtualization, with the ability to run any Linux distribution as well as Windows servers in private, public, and hybrid cloud orchestrations. Unmanaged VPS plans can be installed with Ubuntu, RHEL, Slackware, Debian, Rancher OS, BSD, CentOS, CloudLinux, Windows, etc. as required by the user preferences or project requirements.

You can also create "Sub-servers" and "Alias" servers. Alias servers are useful if for example you have both a ".com" and a ".co.uk" domain - website visitors and mail users can use either domain and will see the same website or reach the same mailbox. Sub-servers are useful if one administrator is managing several different sites - if they all have the same owner then there's no need to log in and out to move between them.
A virtual private server (VPS) is essentially the same thing, except for one key difference. A VPS has been partitioned so that the one server has been split into multiple “mini” virtual servers. Basically, the hosting companies use virtualization to let them make several virtual machines on one computer. Each of these servers can act independently of each other.
A VPS doesn’t just have more RAM, disk space, and a  proprietary share of CPU than a shared account. Depending on the provider, some VPS plans offer burstable memory, which is a pool of RAM set aside for extraordinary events. This is the stuff that can help counter the so-called “Digg-effect,” that much-whispered about occurrence that’s the simultaneous hope and fear of everyone who runs a web site. When you have an unexpected high traffic event, burstable memory will call on a pool of reserved, shared memory to satisfy the needs of temporary high traffic. This is not available on shared servers and, while the necessary memory is available on a dedicated server, your site might not get the kind of traffic on a daily basis to justify the expense of a dedicated server. Again, not all VPS plans have burstable memory, so ask your provider if their VPS plans do.
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