VPS stands for virtual private server and is considered as a virtual dedicated server. It came about because some webmasters complained dedicated servers are too expensive and shared hosting are too low end. So VPS hosting is a mid-range solution for webmasters who demand dedicated server performance and cheaper web hosting cost. Typically for VPS, it costs between thirty to a few hundred dollars per month. You can also host as many websites as you like for each VPS.

The difference between VPS and dedicated server is that for dedicated server, you are fully in control of the whole server, whereas in VPS, a server will contain several virtual private servers. Due to virtual server technology, each VPS is totally isolated from other VPS on the same server. So if one VPS were to crash, it will not affect the rest.

Server resources such as memory and CPU is not shared among all VPS but rather divided so each VPS will have its own share of CPU and memory. Typically, each VPS account will have 128MB memory and 1 CPU plus the allocated diskspace and bandwidth.

Web Hosting Maintenance

One thing I will like to touch on for VPS and lately on dedicated server is that you need to be technically proficient in administering servers. Managing a reseller or shared web hosting is a lot easier. For VPS and dedicated, at the very least, you need to know basic Linux commands and know how to allocate disk space and install programs such as webstats, cpanel etc. You also probably need to routinely patch your VPS or dedicated server with the latest version from time to time.

If you are not technically proficient in handling a VPS or dedicated server, another option is to go for a managed VPS. The web hosting company will setup and patch your VPS from time to time and you can tell them to install any applications you need to run your websites. I'm currently using a managed VPS which saves me the hassle of maintaining it and having more time to manage my websites.

Dedicated Web Hosting

The most expensive web hosting is dedicated web hosting. As the name suggest, you are in control of the server including all server resources and bandwidth. There are very little restrictions in what you can do. Typically, it cost a couple of hundred dollars per month.

If you are running a large corporate website or running a large number of websites requiring huge amount of disk space, server memory and bandwidth, then a dedicated server would be suitable. Some webmasters also get a dedicated server to start reselling web hosting plans.