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VPS refers to Virtual Private Server. In simple words, VPS is a server that operates from within another server. This means it offers more benefits than what you get in a shared server. Yet, it is not a completely dedicated server either. For all practical purposes, a virtual private server looks and functions similarly to a dedicated server. This is because it uses the same hardware that dedicated servers use.

There are many companies like Sphera, Ensim that offer VPS. Apart from this you also have an open source product called as Free VSD. Most companies do not host VPS themselves and just license their technology to various hosting companies across the globe.

With the server world divided between large budgeted dedicated hosting and an economical shared hosting, VPS has the potential to fill the space between the two and create an altogether new market for itself. However, this is not a new concept since you had mainframes which were earlier divided so that more people could access it. Similarly, VPS can also help in bringing down the costs of having a dedicated server.

Let us now see how the server technology works for VPS. Well, this technology will enable the hosting provider to splice its server to create a dedicated server space for you. The advantage of having a virtual private server is that you can have your own bandwidth, process space, disk space, your own file system, CPU, user space and memory allocations.
For all practical purposes you now have a dedicated server. Despite heavy CPU load or high visitor traffic will not have any impact on other private servers that share the same host. However, most hosting companies will have a limit on your memory and CPU. Likewise, if there is an error or fault on any other private server, it will not affect other VPS servers. In fact, each VPS has its own IP address and network.

Need for VPS

There are a number of reasons why people prefer a dedicated server. They include:
Dedicated servers allows you to install and run your own applications

It ensures better security since you do need to share server space with others

It enables you to eliminate downtime risks caused by faulty scripts, hacks or due to someone else’s mistakes

Having your own dedicated server ensures better performance

Though the above reasons are valid, experts are of the opinion that most sites use less than 5% of the dedicated server. This means people are paying more for what they are using now. This is precisely the reason why there is tremendous scope for a virtual private server or VPS.

VPS can provide you with all the benefits of a fully dedicated server. In fact you can now get all the guarantees of a dedicated server despite sharing the physical server. The best part is you can enjoy all this at just a fraction of the cost you pay for a dedicated server.

Finally, when you buy a VPS, you will receive QOS / SLA values that will enable you to expand your website as your business grows. All that you have to do is activate it by rebooting your VPS.

Iulian Ghisoiu is the author of this article on Gazduire.
Find more information on Vps here.